When is Wrongful Termination a Violation of the California Labor Law?

San Francisco, CADana worked at Longs Drug Stores for 23 years, from managing to bookkeeping. "I really liked my job—it was challenging and I liked putting a grumpy customer in a good mood," she says. But Longs was bought out by a large corporation that seemingly didn't much care about their employees: Dana says she was wrongfully terminated and believes the new company violated the California Labor Law.

The California labor code goes by the "at-will" employment rule, which means that an employer is generally able to terminate or demote an at-will employee with or without just cause. But there are many exceptions to the rule and Dana's employer might have violated the California Labor Law by the "defamation of character" doctrine.

Dana may be able to sue for wrongful termination if her employer intentionally defamed her to justify termination. Dana was falsely accused of being a thief, which violates the California labor code.

"I was terminated for ringing an employee's sales up on the cash register," Dana explains. "This girl had two close-out items, which means they wouldn't be carried in the store any longer and employees can get huge discounts on discontinued merchandise. She told me that she had authorization from our point-of-sale clerk (POS)—who was also the floor manager because it was such a small store—and she could purchase an MP3 player for $1 and earphones for .25 cents. I rang up the sale and didn't think any more of it—I just felt that I was doing my job. Longs didn't have a written policy about ringing up items for a dollar and less, but management always approved it.

However, a week later I was escorted into the general manager's office to meet with security from the district office. He asked me to explain why I had rung up this sale. The employee who purchased the merchandise told me that she had authorization for this sale and I didn't question her—that was my mistake, for not asking the POS clerk/floor manager to confirm the sale. My manager listened to the whole thing, but he was just a witness. Security told me they would investigate and I was suspended for 5 days—that is store policy.

When I returned I was supposed to meet with this security guy and learn the outcome of the investigation. Instead my manager said I was fired. I was numb, I was shocked. I couldn't believe that I wasn't going to work the next day. 'After 23 years you don't know better than to question this sale?' he asked. But this has been going on for 23 years; 9 different managers have allowed $1 purchases all the time to employees, to get rid of the merchandise.

And of course the girl who purchased the MP3 player and earphones was terminated as well.

My manager gave me a piece of paper and I had to sign that I was receiving my final pay—he handed me an envelope of cash, no print-out of deductions. My manager was very upset, he was choked up. He walked me out to my car and he was teary-eyed; he tried to tell the district manager that I was more of a victim than a thief but she wouldn't listen.

I wrote a letter to HR explaining my history with Longs and how managers always approve these sales. I even got the "Employee of the Year" award one month before I was fired. I got a clock and $150. But now I am so angry, I want to give the clock back.

I was suspended on March 5th and terminated March 10th. I haven't found another job yet and it is really hard to make ends meet. I was cashing in cans to get food for my kids and we are losing our house. My husband lost his job two years ago and is suffering from depression—most days he can't even get out of bed so I am the only provider.

One lawyer told me that because I didn't get a copy of my deductions it was a violation of the California labor law. I also asked for my personal files from HR but haven't received them as yet. It took me almost 2 months to get a copy of my final deductions. The day you are terminated, everything is supposed to be paid and you are supposed to have a copy of deductions—I know this from when I did the bookkeeping. They sent my vacation pay 6 weeks after my termination; that is also a violation but not enough to justify a lawsuit.

I believe the company should have taken other actions rather than firing me. I should have been given written warning regarding employee discounts. They are really heartless.

Two days after I was terminated, my office was torn out. At that time my main job was bookkeeping. Interestingly, I was told one month before I was fired that this position was going to be outsourced…"