Orange County Employment Lawyer Blog

Almost all California employees are "at will" employees, meaning they can be terminated for any reason, so long as it is not an unlawful reason. So, if most employees are at will employees, what separates a termination from a wrongful termination?

California employees can essentially be terminated for any reason, so long as the reason is not an unlawful reason. Here are some of the more common unlawful reasons that would make a termination a wrongful termination:

1. An employee may not be terminated for lawfully reporting sexual harassment to a supervisor or to Human Resources;
2. Similar to above, an employee cannot be terminated for participating in an investigation of someone else's claims of sexual harassment or unlawful discrimination;
3. For exposing certain unlawful wrongdoings by the company or by a higher ranking employee of the company, commonly known as whistle-blowing;
4. For submitting a worker's compensation claim from injuries suffered at work;
5. For complaining to management or Human Resources about not receiving proper wages, overtime compensation, lunch breaks or rest breaks;
6. For filing a complaint with a governmental or administrative agency such as the DFEH or the Labor Board; and
7. Lastly, an employee is not at will if that employee has an employment contract designating a specific period of time.

In one of the largest single employee verdicts in United States history, the Superior Court of California, County of Orange, entered judgment of approximately $8.4 million in favor of Joovy, LLC, against Baby Trend, Inc., and its founder Denny Tsai. The judgment in favor of Robert Gardner, founder and CEO of Joovy, for claims of wrongful termination, failure to reimburse, breach of contract, and fraud was in the amount of $6,909,991 jointly against Baby Trend and Denny Tsai, and for an additional $1,495,917 against just Baby Trend.

"Wrongful termination" is one of the most mis-used and mis-understood terms in California employment law. Many clients who have called my Orange County Law Firm have been terminated from employment feel they have been wrongfully terminated. However, what these people typically fail to realize is that California is an "at will" state. "At will" means that you can be terminated with or without cause, with or without any prior notice. Similarly, the employee may also resign from their employment with or without cause or without giving any prior notice. Simply put, you can be terminated for any reason, so long as it is not an unlawful reason (race, gender, or legally protected conduct, etc.).

Some forms of "legally protected conduct" include reporting sexual harassment, reporting or complaining about not receiving overtime, meal breaks, or proper wages. If you are terminated for reporting or complaining about any of these legally protected issues, you then have a claim for wrongful termination in violation of public policy.

Case information for Gardner vs. Baby Trend, Case No. 05CC11681