What are the steps I should take to properly terminate an employee in California?
To properly terminate an employee in California, an employer must follow certain steps in order to comply with state and federal employment laws. The following are the steps that employers should take to terminate an employee properly in accordance with California law:
- Ensure that the Termination is Lawful: In California, an employer may terminate an employee for any reason or no reason at all, except for reasons that are illegal or violate public policy. Employers are legally prohibited from terminating employees based on protected characteristics such as race, gender, sexual orientation, age, religion, or disability. Employers are also not allowed to retaliate against employees for exercising their legal rights or for reporting violations of the law.
- Provide Written Notice: Under California law, employers are required to provide written notice to the employee at least 72 hours before the termination. This is referred to as the “payday notice.” The notice should include the final date of employment and the reason for the termination if one is being provided.
- Final Paycheck: Employers are required to provide employees with their final paycheck on the last day of work or within 72 hours if the employee is terminated without notice. The final paycheck should include all wages earned up to the date of termination, as well as any accrued vacation or sick pay.
- COBRA Notices: Employers must provide COBRA notices to employees who are eligible for continued health insurance coverage after they lose their job. This notice should be provided within 14 days after the last day of employment.
- Return of Company Property: Employers should collect any company property from the employee, including laptops, keys, and access cards, to avoid any potential issues after the termination.
- Offer Severance Package: Employers may offer a severance package to the employee as part of the termination process, but are not legally required to do so. If a severance package is offered, it is recommended to have a written agreement signed by both parties to ensure the terms are clear and enforceable.
It is important to note that these are general guidelines, and specific circumstances may require additional steps or considerations. Employers should consider consulting with an experienced California employment lawyer to ensure compliance with applicable laws and to minimize the risk of potential legal claims.