California Labor Law: 'At-Will' Recourse?

Sacramento, CACalifornia is an "at-will" state, meaning that most employees can be terminated with or without cause or even advance notice. Terri thought her job was secure: "Like a slap in the face, I was here one day, and gone the next, with no warning," she says.

It's happening a lot these days. In fact experts estimate that at least 250,000 workers are illegally or unjustly fired each year, not including employees that were terminated with reason. When companies are doing well, they may over-staff. But for many businesses, profitability turns and they "reorganize", which usually translates to staff layoffs, thereby reducing fixed costs.

But some companies layoff employees who have been loyal and faithful, employees who helped with the start-up. And worse, they keep new, younger employees who are earning less. This is discrimination and wrongful discharge can trump "at-will" termination.

Getting back to Terri, who believes she was discriminated against and therefore, may have a claim against her employer. "I am 55 and they replaced me with a 29-year-old," says Terri. "When she was first hired, I knew she was going to take over my job because they were paying her less."

Although she only worked at this company for 26 months, Terri was the longest employee there and helped with the start-up. In fact her job as executive administrator was above and beyond the call of duty, going so far as to house and dog sit for her employers—a husband and wife team--and more. Her duties ran the gamut from driving the company truck to running the office, even picking up their dry cleaning.

In July of this year, she was reviewed and her boss gave her a glowing report. "He told me I was the best dressed person in the office, since I was acting as receptionist also," she says. "I presented a good image, was dedicated, loyal and trusted—they even entrusted me with their credit cards when they were out-of-town."

"He offered me a $1 per hour raise, but I asked if he would consider more than that because temps were making $15 per hour. I was paid $16, and I didn't want the medical benefits—I am a retired police officer and already have great coverage through the force. He said he would consider it.

About a month later, a new temp asked me how to set up employee appreciation day—which I had just done. She wanted all my info but I told her I just got it off the internet.
Within minutes, I got an email from one of my employers--the wife-- saying that I wasn't helping the temp. I didn't even get a chance to help her.

In August, I had a second review. I handed my boss the self-evaluation sheet and he told me that I was fired!
'If you can't help my assistant, then you aren't helping me,' he said.
'What are you talking about?' I asked.
'When she asked you about the itinerary for employee appreciation day, you should have told her to go to Amtrak.com.'
'I already told her that I got the information from the internet and I was willing to help her further.'
'And you are caustic,' he said.

They had my check ready. Then he sat there and watched me clean out my desk. 'Is that company stuff you are taking?' he said. I would never steal, nor would I start now. I had keys to their home, their credit cards. I was humiliated.

If someone came by as I cleaned out my desk, it would look like I was accused of theft. I was fired August 30th and received unemployment benefits from August until March. I haven't found another job yet so I am worried about my finances. However, I talked to a few attorneys who said I can be fired because they don't like the smile on my face. Another said my case sounds like age discrimination. So I may have a case."

Getting fired can happen to just about anyone but some employers may not have the right to do so, regardless of the "at-will" policy. You may have employment agreements such as an employee handbook or company policy that can limit employee terminations or establish severance requirements in the event of layoffs. As well, an employee cannot be terminated based on age, race, national origin, sex, disability and leave status.

Employees such as Terri who are treated unfairly, who are humiliated and treated like petty criminals are within their rights to seek legal help if they have been wrongfully terminated, regardless of the "at-will" policy.