What Does At-Will Employment Mean In California?

At-will and just-cause employment are two types of employment arrangements that businesses in the country practice. When you are employed at will, you may be terminated by your employer without a reason or notice at any time. If not, then the employer must provide a valid reason for your termination.  

California is among the at-will states. That means every working individual is assumed to be employed at will. Aside from firing employees for no reason, there are other things about at-will employment in California that you must understand. Read on to learn more.

The Advantages of At-Will Employment

Hiring at-will employees is beneficial for companies because it gives them the flexibility to fire employees who are underperforming. The termination process is fast and easy. They can also use the law for protection in case employees sue them for wrongful termination.

Meanwhile, at-will employment allows employees to leave the company at any time even without providing a reason. You can choose to walk away as you wish and transition to a new job as quickly as possible.

Your Rights as an Employee

You might say that employees are in a disadvantageous position because of the threat of losing their livelihood without warning. But state and federal laws still protect you against wrongful or illegal termination. Regardless of the type of employment, you cannot be terminated based on your age, gender, sexual orientation, race, nationality, and other discriminatory practices.

At-Will Employment Exceptions

Civic employees, C-suite employees, and those who are part of a union are usually exempt from at-will employment in California. Their contracts cannot be terminated without valid reasons or good cause, making it difficult to fire them.

Limitations of At-Will Employment

While at-will employment in California is the default arrangement, this rule has limitations. There are situations where the rule may not apply to an employee. Some examples include:

• There is an oral or written employment contract that states the employee cannot be terminated without “good cause”
• There is an implied contract between the employer and the employee
• The employer committed misconduct, such as retaliation, discrimination, sexual harassment
• The employee is fired because of religious belief, race, and other protected characteristic
• The employee got fired after accepting a job offer when the employer is aware of the employee’s situation (quitting previous job, leaving school, moving closer to the office to take the new job)

The “Good Cause”

Employers are not required to prove they had good cause for terminating employees. However, they must really have a valid reason to do so. Aside from poor performance, laying off people due to economic reasons is also an example of a “good cause.”

Implied Contract

As mentioned, an implied contract is one of the exceptions to the at-will employment rule. It is a non-verbal and unwritten contract between employer and employee that is legally binding. It happens when an employee believes that he or she cannot be terminated at will or without good cause. Based on the actions, conduct, and circumstances of both parties involved, it can be reasonably inferred that they have formed an agreement.