What are the steps an employer in California should take when terminating an employee?
When an employer in California decides to terminate an employee, there are several steps they should take to mitigate against any potential legal claims or disputes that could arise. Below are some of the recommended steps:
- Identify a valid reason for termination: California is an "at-will" employment state, which means that employers have the right to terminate employees without a reason. However, if the employer decides to give a reason, it should be a valid one that does not violate any state or federal laws, such as discrimination or retaliation.
- Provide written notice: Generally, California law requires employers to provide written notice of termination to the employee. The notice should clearly state the effective date of termination and any severance pay entitlements. Depending on the employee's classification, the notice period may differ. For instance, the notice for an employee with tenure may be different from a non-tenured worker.
- Pay final wages: Once the termination notice is given, the employer must pay all the final wages (including any accrued vacation time) owed to the employee immediately upon termination. The employer can pay the employee in person on the last day of work or by mail if the employee is not present.
- Collect company property: The employer should request the return of all company property, including keys, uniforms, laptops, mobile devices, and any other items provided to the employee.
- Conduct an exit interview: This is a meeting between the terminating employee and a representative of the employer. The purpose of this interview is to discuss the reason for termination, collect feedback, and provide information about continued benefits if applicable.
It is critical to note that California has strict employment laws, and even though the above steps can mitigate against potential legal claims or disputes, an employer should still consult with an experienced employment attorney to stay compliant with the law. Companies should keep strict documentation of the termination process, including correspondence and responses, should legal issues do arise in the future.