The Statute of Limitations for Wrongful Termination in California

In California, the statute of limitations to sue for wrongful termination is either:

• two years for breach of an implied employment contract or for public policy violations; or
• three years for FEHA violations, WARN Act violations, or whistleblower retaliation (including Sarbanes-Oxley Act); or
• four years for breach of a written employment contract.

Note that in some cases, you must file an administrative complaint before bringing a lawsuit. For example, a federal Equal Employment Opportunity Commission (EEOC) claim must be filed within 180 days (or 300 days in some instances) of your termination.

Below I discuss what you need to know about statutes of limitations (SOLs) in wrongful termination cases in California.

SOL for Breach of Implied Contract – 2 Years

If you are fired in violation of an implied contract not to terminate except for good cause, you have two years from your termination to file a lawsuit in California.¹ This statute of limitations also applies to oral contracts.

These lawsuits are rare. This is because many California employees are at-will employees, which means they can be terminated for any lawful reason.

SOL for Public Policy Violation – 2 Years

In California, you can sue for wrongful termination in violation of public policy within two years of your termination.² Public policy is violated if you are fired for either:

• refusing to break the law,
• carrying out a legal obligation,
• exercising your rights or privileges under the law, or
• reporting a potential violation of an important law.³

You can bring this type of lawsuit even if you were an at-will employee.

SOL for FEHA Retaliation – 3 Years

If your California employer retaliated against you for exercising your FEHA (Fair Employment and Housing Act) rights, you have three years from your termination to file an administrative complaint with the California Civil Rights Department (CRD).⁴ Once the CRD issues you a right-to-sue letter, you have one more year to file a wrongful termination lawsuit against the employer.⁵

FEHA retaliation terminations are similar to those that violate public policy. They include firings that took place because you either:

• opposed or filed a complaint about workplace harassment or sexual harassment,
• challenged the employer’s refusal to grant leave under an applicable pregnancy, family, or medical leave act,
• cooperated with an investigation about the employer’s alleged discrimination or harassment,
• testified or assisted in a FEHA proceeding,
• requested a workplace accommodation for your disability or religious belief, or
• initiated a claim under an employment discrimination law on the basis of:
  • gender,
  • sexual orientation,
  • national origin,
  • race, or
  • any other protected trait.⁶

SOL for WARN Act Violation – 3 Years

If you are covered by the WARN Act (Worker Adjustment and Retraining Notification Act) – and you are terminated in violation of it – you have three years from your termination to sue the employer.⁷

California’s WARN Act requires covered employers to give you at least 60 days of notice before a:

• mass layoff,
• plant closure, or
• major relocation.⁸

The WARN Act applies to employers who have employed at least 75 employees in the last 12 months.⁹

SOL for Whistleblower Retaliation – 3 Years

If you were fired for blowing the whistle on wrongdoing in the workplace, you have three years from your termination to sue under California Labor Code section 1102.5.¹⁰ This state law covers terminations for:

• reporting wage and hour law violations to the Labor Commissioner,
• bringing evidence of the employer’s suspected criminal activity to a law enforcement or government agency, or
• making an allegation of suspected wrongdoing internally to a supervisor or to someone else with the authority to investigate.

If you blow the whistle on suspected securities fraud by your employer, you also have federal protections under the Sarbanes-Oxley Act. Though in this case, you must file an administrative complaint with the Department of Labor (DOL) within 180 days of your termination.

The DOL then has 180 days to act on the complaint. If they do not, you can file a lawsuit against your employer within four years of your termination.¹¹

SOL for Breach of Written Contract – 4 years

If you are fired in violation of a written employment contract in California, you have four years from your termination to file a wrongful termination suit.¹² This sounds like a long time, but it is advised you hire an attorney as soon as possible: It takes time to gather evidence and craft a winning case.

Most California employees are at-will.

Frequently Asked Questions

What is a SOL?

The statute of limitations (SOL) is the time period during which you can file a lawsuit. It generally begins to run when you (the victim of someone else’s wrongful conduct) either:

• have been harmed in some way, or
• have discovered that you have been harmed.

When the statute of limitations has expired, you can no longer invoke your legal rights. If you try to sue after the time limit has run, the defendant can have the case dismissed quickly.

Statutes of limitations serve several purposes, including:

• pushing you to invoke your rights quickly,
• allowing defendants to repose once a sufficient period of time has passed, and
• ensuring that evidence and memories of the incident are fresh for the case.

The following table summarizes the applicable SOLs for wrongful termination lawsuits in California:

What is wrongful termination?

Wrongful termination happens when an employer fires, discharges, or lays you off for an unlawful reason. Under California law, the most common illegal reasons for terminating a worker include:

• retaliation,
• discrimination, and
• violation of public policy.

Wrongful terminations can also be constructive terminations. Constructive dismissal happens when you quit because your employer has made the working conditions so bad that a reasonable person would see that they have no alternative but to resign.

When do I have to file an administrative complaint before suing?

Whether you have to file an administrative complaint first before pursuing a traditional wrongful termination lawsuit depends on the particular case. I can help you determine your options.

For instance, if the employer committed a FEHA violation, I would first file a complaint with the California CRD. Or if you blew the whistle on securities fraud, I would first file a complaint with the federal DOL.

The administrative process is meant to vet the merit of your claim and resolve the case outside of the courtroom through mediation or arbitration. This reduces costs and preserves judicial resources. Though if the administrative process does not resolve the dispute, I can then file a wrongful termination case in court.

What is the wrongful termination payout in California?

I see wrongful termination settlements ranging from a few thousand dollars to a million dollars or higher. No average settlement amount for wrongful termination exists because so many different factors determine the final payout, such as:

• your salary at the time of termination,
• your lost benefits,
• your job title,
• your job history, and
• the circumstances leading to your termination, such as harassment or discrimination.

Damages I seek include:

• your back pay (including any wages and overtime in dispute),
• reinstatement,
• emotional distress, and/or
• attorney’s fees.

The wrongful termination statute of limitations in California is two, three, or four years depending on the legal grounds.

Additional Reading

For more in-depth information, refer to these scholarly articles:

• Wrongful termination and the expanding public policy exception: Implications and advice – SAM Advanced Management Journal.
• The Legal Consequences of a Wrongful Termination – Constitutional Law International.
• At Will Employment Agreements: New Focus for Shielding Employers from Wrongful Termination Suits – Western State University Law Review.
• Past, Present, and Future in Wrongful Termination Law – Labor Law.
• Demonstrating Failure To Discharge Plaintiffs Duty To Mitigate In A Wrongful Termination Case: An Empirical Approach – Journal of Business of Economics Research.