California is an "At-Will" State. Can You Still Sue for Wrongful Termination?

Yes, you can still sue your employer for wrongful termination, even in an at-will state like California. While at-will employment gives employers flexibility, it does not give them unlimited power to fire workers for illegal or discriminatory reasons.

If you’ve recently been terminated and are wondering if you can sue an at-will employer for wrongful termination, this blog explains your rights, common illegal termination scenarios, and what steps to take next.

What Does “At-Will” Employment Mean?

“At-will” employment means an employee does not have a formal employment contract and can be terminated at almost any time, with or without notice. Employers often interpret this as the ability to fire for any reason, but it isn’t as simple as that. 

There are important exceptions to at-will employment. Employers cannot fire workers for reasons that break state or federal laws, such as discrimination, retaliation, or violations of public policy.

Can You Sue for Wrongful Termination in an At-Will State?

Yes, even though California is an at-will state, employers cannot legally terminate you for unlawful reasons. If your employer violates your rights, you may have grounds to sue for wrongful termination.

Some of the key laws that protect California workers include:

• California Fair Employment and Housing Act (FEHA): Prohibits discrimination and retaliation.
• Title VII of the Civil Rights Act of 1964: Outlaws workplace discrimination based on race, sex, religion, and other protected categories.
• Family and Medical Leave Act (FMLA): Protects workers who need medical or family leave.
• Workers’ compensation protections: Employers cannot retaliate against you for filing a workplace injury claim.

The Difference Between Unfair and Illegal Termination

Not every firing that feels unfair is actually unlawful. For example, being let go because of a personality conflict or company restructuring may be frustrating but isn’t necessarily wrongful termination. 

However, if an employee is fired due to discrimination, retaliation, or in violation of an employment contract, the termination may cross the line into illegality. Clarifying this distinction can help employees understand whether they have a valid case.

Illegal Reasons for Termination

Even in an at-will state, employers cannot terminate employees for reasons such as:

• Age
• Sex or gender
• Gender identity or sexual orientation
• National origin or ethnicity
• Religious beliefs
• Disability status
• Pregnancy or parenthood
• Filing a complaint about workplace violations
  
  

If you were fired for any of these reasons, you may have a valid wrongful termination claim.

Common Scenarios Where You May Be Owed Compensation

Sometimes, employers try to justify a firing when in reality, the termination violated employment law. You may be owed money if your firing involved:

• Being forced to work through legally required breaks
• Discrimination based on race, gender, or another protected category
• Working off the clock without pay
• Denial of overtime pay or missed break compensation
• Termination due to pregnancy or a workplace injury
• Retaliation for reporting harassment or unsafe working conditions
  
  

The Emotional Impact of Wrongful Termination

Being wrongfully fired isn’t just a financial setback; it can also take a toll on a person’s mental and emotional well-being. Stress, loss of confidence, and challenges in securing new employment often follow. Recognizing this impact is important, as damages in a claim may sometimes include compensation for emotional distress.

Wrongful Termination and Unemployment Benefits

Many employees assume they won’t qualify for unemployment benefits if their employers fire them. In reality, if the termination was unlawful or not due to misconduct, they may still be eligible. Filing for unemployment can also help create a record of how a state agency viewed the termination.

Know Your Rights

Many California employees mistakenly believe that because the state is “at-will,” they have no legal recourse after being fired. Nothing could be further from the truth. California law provides strong protections against wrongful termination, and you may be entitled to compensation.

By staying informed, you protect yourself from unfair treatment. If you believe you were fired unlawfully, don’t wait. Speak with an attorney to explore your legal options.