Introduction
Almost everyone that has ever held a job has heard of “at-will employment.” If there is one employment policy that all employers make crystal clear during the hiring process, in the personnel manual, on every single form, in every single policy, and in every single announcement that is half-way relevant, employers remind employees that “all employment with the company is strictly ‘at will.’” While it is absolutely true that almost all employees in California are “at-will employees,” the legal concept of “at-will employment” is almost entirely meaningless when it comes to 99.9% of potential claims employees assert against employers in lawsuits for harassment, discrimination, retaliation, unpaid wages, and virtually every other potential claim.
Based on his 25 years of experience as a defense attorney defending many of the country’s biggest corporations, Matt Ruggles explains in this post how California employers improperly use the concept of “at-will employment” to discourage employees from seeking legal recourse for wrongful termination and other claims, and why “at-will employment” is basically a hoax.
“At-Will” Employment Defined
In California, just like nearly everywhere else in the United States (Montana is the only exception), all employees are presumed to be “at-will” employees. In a nutshell, that means that unless you have a written employment contract that requires “good cause” for termination of employment, the employer is legally permitted to terminate your employment without advance notice and without any specific reason, so long as the reason for termination is not illegal (i.e. is not prohibited by California law).
“At-Will” Employment Exception: Employment Contracts
Most employees do not have written employment contacts; instead, written employment contracts generally are limited to corporate executives, professional athletes, labor unions, and other limited situations.
Because almost all employees do not have a written employment contract, and therefore do not have an express written agreement about the requirements for termination, employees in California are presumed to be “at-will employees.” But at-will employment does not give an employer complete freedom to fire an employee for any reason. An employer cannot terminate an employee for a reason that “violates public policy,” which means is illegal under California law.
Lawyers sum it up this way: “At-will employment means that an employer can fire you for a good reason, a bad reason, or no reason at all, but not an illegal reason.”
“At-Will” Employment is Almost Always Irrelevant for California Employees
Although California employers love to remind their employees at every possible opportunity that “all employment with the company is at will,” the legal concept of at-will employment actually is very limited because it is a legal defense only to a contract-based claim.
As mentioned above, contract claims in California employment lawsuits are very rare because almost no California employees have an employment contract; only a very limited class of employees in California have written employment contracts. As a result, most employment lawsuits do not sue for “breach of contract” because there is no employment contract.
Because the concept of “at-will employment” is a defense only to a claim for breach of an employment contract, it is totally irrelevant to almost every single employment lawsuit, and therefore 100% factually and legally irrelevant to almost every single alleged wrongful termination claim. Simply put, the concept of “at-will employment” is basically meaningless in 99.9% of legitimate potential legal claims that a terminated California employee can assert against a former employer.
Emphasizing “At-Will” Employment: It’s a Hoax!
Nevertheless, the concept of at will employment is completely and totally overemphasized by employers for one simple reason: to “remind” employees that the employer can terminate you for any reason!! Of course, employers never explain that the company’s ability to terminate an employee “for any reason” is limited to any “legal” reason – they just emphasize the “any reason” part, even though the concept of at will employment is completely irrelevant to almost every single termination decision. Basically, at-will employment is a hoax!
During a termination meeting or in your termination notice, sometimes the employer will expressly remind you that you are an “at-will employee” or that “all employment with the company is at will employment.” Employers do this for the improper purpose to imply that the employer is not obligated to have a valid, legal reason to terminate your employment and therefore discourage you from seeking legal advice. While partially true (an employer can legally fire you for a “bad reason” so long as the bad reason is not illegal), most of the time the employer that emphasizes “at will employment” at the termination meeting or in the termination notice does so because the employer knows that the real reason for termination of employment is questionable, is illegal, or both, and the employer incorrectly believes that asserting “at will employment” is a “get out jail free card” that allows the employer to dodge that bullet.
Moreover, because the concept of “at-will employment” is not a defense to a claim for wrongful termination based on harassment, discrimination or retaliation, many times it is apparent that an employer that asserts “at-will employment” at the termination meeting or in the termination notice has not received professional legal advice because no competent employment attorney would advise an employer to assert “at-will employment” in the termination notice. Any half-way decent management-side attorney knows it is completely meaningless and asserting it would make the employer look ignorant.
The bottom line is that if your termination notice includes a reminder that you are an “at-will employee” or that “all employment with the company is at-will employment,” you should immediately seek legal advice from an experienced employment law attorney.
Conclusion
While California’s “at-will” employment doctrine gives employers the flexibility to terminate employees without notice or a specific reason, it does not grant employers the right to violate legal protections. The overemphasis on at-will employment by California employers is often a tactic to mislead employees into believing they have no recourse. However, employees must be aware that certain terminations, especially those involving illegal reasons such as discrimination, retaliation, or harassment, are not protected under the at-will doctrine.
Understanding your rights and seeking legal advice is essential when facing termination. Key takeaways include:
- At-will employment allows employers to terminate employees without cause, but not for illegal reasons.
- Illegal terminations, such as those based on discrimination or retaliation, cannot be justified by at-will employment.
- Employers may misuse the concept of at-will employment to discourage employees from seeking legal advice.
- Employees should consult with an employment attorney if at-will employment is cited in a questionable or unfair termination.
Contact the Ruggles Law Firm at 916-758-8058 to Evaluate Your Potential Lawsuit
Matt Ruggles has a thorough understanding of California employment laws and decades of practical experience litigating employment law claims in California and federal court. Using all of his knowledge and experience, Matt and his team can quickly evaluate your potential claim and give you realistic advice on what you can expect if you sue your former employer.
The fight for employee rights is an ongoing battle that requires vigilance, knowledge, and the unwavering commitment of both employees and employers. California, with its robust legal framework, stands at the forefront of protecting workers’ rights and promoting diversity and inclusion in the workplace.
Contact the Ruggles Law Firm at 916-758-8058 for a free, no obligation consultation.
Blog posts are not legal advice and are for information purposes only. Contact the Ruggles Law Firm for consideration of your individual circumstances.
