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“At-Will” Employment in San Diego
In San Diego and California, with some exceptions, all employees are “at-will” employees that can be fired “for cause” or “for no reason at all.” One exception is if your San Diego business or company has agreed to an employment contract with an employee that gives him or her a specific length of employment. Another exception is where the reason for the firing violates “public policy.” This exception is discussed more fully below. The purpose of the “at-will” employment doctrine is to give businesses the flexibility to make labor decisions in a competitive market place. It is to be noted that the employee also has the same right to terminate their employment.
When drafting employment, independent contractor, and consultant agreements, the best legal practice is to plainly state the “at-will” nature of the relationship. A good San Diego lawyer can help draft these types of contracts containing enforceable language. Likewise, a well-drafted employee handbook will also make the at-will nature of the relationship clear. Here again, a good San Diego lawyer can help. Here is a quick rundown on the at-will employment relationship in California.
San Diego Corporate Law: What is the At-Will Employment Doctrine?
As noted, under California law, employment for an indefinite duration is terminable at “the will” of either party. This is codified at Cal. Labor Code, § 2922 which states: “An employment, having no specified term, may be terminated at the will of either party on notice to the other. Employment for a specified term means an employment for a period greater than one month.”
San Diego Corporate Law: The “Public Policy” Exception
However, there are exceptions. As noted, an employment contract can take the employment relationship out of the at-will category. A second category of exceptions occur when a termination that is made in “violation of public policy.” The leading California case is Tameny v. Atlantic Richfield Co., 27 Cal.3d 167 (Ca. Supreme Court 1980). In that case, the employee/plaintiff alleged that his employer, Atlantic Richfield Co, had wrongfully terminated him after 15 years because he refused to participate in an illegal scheme to fix retail gasoline prices. The California Supreme Court allowed that he should be able to sue for the tort of wrongful discharge.
Other examples include:
- Discharge for refusal to commit perjury
- Discharge because of union membership and activity
- Discharge for serving on jury
- Discharge for filing worker’s compensation claim
- Discharge for reporting violations of consumer protection laws and other whistleblowing activity
- Discharge based on discrimination
A counter-example comes from a recent unpublished California case encaptioned Elias v. Pacific Alliance Medical Center, Case No. No. G052823 (Cal. App. 4th Dist. 2017). In that case, the plaintiff/employee was a security guard. He was fired when he gave a female coworker underwear as a gift. The security guard had asked the coworker if he could give her a gift, without specifying what the gift was, and she agreed to receive it. But she found the gift to be highly offensive and it made her feel very uncomfortable and anxious. He was subsequently fired. When he was fired, it was explained that, “[a]s a security officer he was responsible for the safety of employees, patients and visitors … his behavior demonstrated that he could no longer be trusted to use sound judgment.”
The plaintiff sued, claiming he was fired in violation of public policy. However, the trial court rejected the argument and the Court of Appeal agreed. The court noted succinctly that “[t]here is no public policy protecting workplace gifts of underwear.”
Contact San Diego Corporate Law Today
For further information, please contact Michael Leonard, Esq. of San Diego Corporate Law. As noted, it is important that your employment, independent contractor, and consultant agreements have enforceable and proper “at-will employment” clauses. Likewise, any employee handbook should also contain the appropriate language. Mr. Leonard can assist and can update your contracts and employee handbook as needed. Contact Mr. Leonard via email or by calling (858) 483-9200. Mr. Leonard has been named a “Rising Star” three years running by SuperLawyers.com and “Best of the Bar” by the San Diego Business Journal.
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