California is an at-will state, which means your boss can fire you at any time for no reason at all. However, there are exceptions: You can sue your employer for wrongful termination if you are let go due to either:
- breach of contract,
- discrimination,
- retaliation,
- Warn Act violations,
- AI-driven terminations, or
- public policy violations.
Depending on your wrongful termination case, you may be able to get your old job back. You may also be entitled to lost earnings, emotional distress, and even punitive damages, which can be far larger than any wages you were cheated out of.
In this article, our California labor and employment lawyers discuss the following wrongful termination topics:
- 1. Six Grounds to Sue
- 2. Gathering Evidence
- 3. Filing a Complaint
- 4. Money and Remedies
- 5. What if I quit my job?
- Frequently-Asked-Questions
- Additional Reading
1. Six Grounds to Sue
In California, wrongful termination occurs when your employer fires you or lays you off for unlawful reasons.
Even if your boss claims there was no reason – or if they make up a reason – you can still win a wrongful termination lawsuit. As discussed below, you just have to show that your boss’s true motivation violated the law.
1) Breach of Contract
A common ground of wrongful termination lawsuits in California is that the firing breached the employment contract.
It is not necessary that there be a written contract. It may be enough to have an oral contract or an “implied contract.” For example, your employer may have created an implied contract not to terminate you without good cause by:
- issuing an employee handbook listing specific reasons why employees may be fired and/or
- telling you in person that your job is safe as long as you do not do certain things in violation of company policy.
You and your employer also have an “implied covenant of good faith and fair dealing.” Your boss may have broken this covenant through non-communication, inaction, fraud, lies, interference, or evasiveness.1
Violation of Company Policies
Even if you do not have a written employment contract, your employer may be liable for wrongful termination if they violated their own internal policies when firing you.
Many companies issue employee handbooks that outline a “progressive discipline” policy—for example, promising a verbal warning, then a written warning, and finally a suspension before termination. If your boss skipped these established steps and fired you immediately for a minor offense (like a single cash-handling error), they may have breached an implied contract.
Courts often view these handbooks as binding promises. If your employer failed to follow the specific termination protocols they created, you may be able to sue for breach of implied contract.
2) Discrimination
It is a sad reality that some bosses have prejudices and preconceived biases against certain people that have nothing to do with their merit or work ethic. Therefore, California and federal employment law prohibit employers from firing you based on your “protected characteristics.” These include such traits as:
- race or color,
- national origin or ancestry,
- religion,
- sex or gender identity (including transgender or non-binary),
- sexual orientation,
- age (40 years old and up),
- disability,
- genetic information,
- veteran status,
- citizenship status.2
Some other protected traits are exclusive to mothers, such as:
- pregnancy or
- pumping breast milk at work.3
There are also some protected traits that you cannot be fired for in California but that are not explicitly recognized under federal law. These include:
- medical conditions (including HIV status)
- political activities or affiliations,
- labor union activities,
- marital status,
- being a victim of domestic violence, assault or stalking,
- height and weight (in some cities such as San Francisco), or
- off-duty cannabis use (testing positive for non-psychoactive cannabis metabolites).4
With regard to marijuana, it has only been since January 1, 2024, that California employers may not fire you solely for using cannabis off the job and away from the workplace. Employers can still test for impairment while on duty, but AB 2188 prohibits terminating you based on a drug test that only detects past use of non-psychoactive metabolites.
Your employer may have had “mixed motivations” where there were both nondiscriminatory and discriminatory reasons to fire you. As long as the discriminatory reason was a substantial trigger for your firing, then it constitutes wrongful termination.5
Protected classes such as pregnant mothers may have grounds to sue for wrongful termination.
3) Retaliation
In California, employers may not fire you in retaliation for exercising your rights, even if it is inconvenient to them. As discussed below, you are entitled to certain protections regarding leave, wages, workers’ comp, whistleblowing, and more.
Taking Leave
The Family and Medical Leave Act (FMLA) and California Family Rights Act (CFRA) provide eligible employees with 12 weeks of unpaid, job-protected leave each year. If you are fired while on family or medical leave, or within 90 days of returning from such leave, California courts often apply a “rebuttable presumption” of retaliation.
This shifts the burden of proof significantly: your employer must prove that they had a legitimate, non-retaliatory reason for firing you (such as mass layoffs affecting everyone) and that your leave had absolutely nothing to do with it. It is wrongful termination for employers to fire you for taking leave that you are entitled to.6
Similarly, wrongful termination is presumed in California if an employer fires you within 30 days after you request to use paid sick leave. At that point, the employer would have the burden to demonstrate that your firing had to do with something other than leave-taking.7
Note that employers also may not fire you for serving on a jury or serving as a volunteer firefighter during an emergency. Nor may employers fire you for taking time off work if you have been a victim of specific crimes and are seeking help.8
Wage and Hour Disputes
It is not unusual for employers and workers to clash over unpaid overtime pay, missed rest or meal breaks, or other wage and hour issues. However, your boss may not fire you for complaining about it or even for filing a claim with the Department of Industrial Relations.9
Note that in an emergency, employers also may not fire you for refusing to come to – or stay at – work because you have a reasonable belief the work site is not safe.10
Furthermore, during your off-hours, California employers may not fire you in retaliation for any lawful conduct you take part in away from the office. For example if you go to a protest for a cause your boss disagrees with, they cannot fire you for it.11
Harassment and Discrimination
Many retaliation claims fall under FEHA (Fair Employment and Housing Act), which is meant to protect against workplace harassment and discrimination. For example, it is a FEHA violation if your boss terminates you because you either:
- opposed or filed a complaint about harassment (including sexual harassment) or discrimination,
- requested accommodations for your disability or religious beliefs, or
- testified or assisted in any FEHA proceeding.12
Workers’ Compensation
It is also unlawful for your boss to fire you for reporting a work injury or filing for workers’ comp. California employers are required to carry workers’ compensation insurance precisely so you will be taken care of in the event you get injured on the job.13
Whistleblowing
You cannot be fired in California in retaliation for being a whistleblower, which means you reported a potential violation of the law by your employer to a government agency. A common example is reporting a workplace safety or health hazard to OSHA.14
If you work for a publicly traded company, the federal Sarbanes-Oxley Act of 2002 gives you the right to sue for wrongful termination if your employer fires you for reporting suspected securities fraud to the federal government or a supervisor.15
Another important whistleblower law is the “qui tam” section of the California False Claims Act, which allows you to sue your employer on behalf of the state if your employer committed fraud or embezzlement with respect to government funds. Then if your employer terminates you for bringing a qui tam suit, you can sue for wrongful termination.16
Employers may try to get around whistleblower laws by claiming you were insubordinate. Though absent other facts, merely exercising your rights is not insubordination.17
4) WARN Act Violations
California’s Worker Retraining and Notification (WARN) Act requires employers to provide you with 60 days’ notice
- before conducting a mass layoff of 50 or more employees or
- before closing or relocating a facility.
The law applies to all employers with at least 75 employees.
If your employer fails to provide 60 days’ notice, you may sue for wages and benefits for the amount of time by which the notice fell short of 60 days.18
5) AI-Driven Terminations (“No Robo Bosses Act”)
As of January 1, 2026, California has enacted Senate Bill 7 (often called the “No Robo Bosses Act”), which prohibits employers from using automated decision-making systems (ADS) as the sole basis for terminating an employee.
Under this new law, your employer cannot fire you based exclusively on an algorithm’s productivity score or surveillance data. Before any termination decision suggested by AI can be finalized, a human manager must review the data and the decision to ensure it is not discriminatory or flawed.
If you were fired by an “automated manager” without human oversight, you may now have grounds to sue for wrongful termination under this specific statute.
6) Public Policy Violations
Wrongful termination in violation of public policy typically happens when you are fired for refusing to follow your employer’s order to break the law.
For example, if you are let go for ignoring your employer’s order to commit fraud, you will have a valid case for “public policy wrongful termination.”19
It is also a violation of public policy to fire you for refusing to sign a non-compete agreement, which is generally void and unenforceable under California Business and Professions Code § 16600 and recent laws SB 699 and AB 1076. If your employer lets you go because you would not sign a contract that restricts your ability to work for a competitor in the future, you likely have grounds for a wrongful termination lawsuit.
Wrongful termination is also called wrongful discharge or unjust dismissal.
2. Gathering Evidence
In most lawsuits, the burden is on you to prove that you are a victim of wrongful termination in California. Six types of evidence that can help demonstrate that you were fired unlawfully include:
- Recorded communications. Examples include emails or voicemails from managers that show harassing or prejudicial behavior.
- Written communications. Examples include performance reviews, termination letters, handwritten notes, memos, and social media posts that suggest you were treated unfairly.
- Eyewitness accounts. Fellow co-workers who can back up your side of the story are invaluable. An example would be a colleague who saw your manager harass you.
- Company employment data. This information may reveal that your former employer is systemically prejudiced. For example, a lack of people of color in management positions indicates that the hiring partners may be discriminating in favor of white employees.
- Your journal. If you documented any conversations you had with your supervisor or colleagues about your job performance, expectations of job security, etc., that could help prove that your boss’s grounds for firing you were unlawful. The most valuable written records include dates, locations, and the names of all the participants in the conversation.
- Social media. The internet is often a goldmine of evidence. Common sources include Facebook, Instagram, LinkedIn, X (Twitter), Venmo, Yelp, TikTok, Threads, Glassdoor, and podcasts.
Your California employment attorney can also conduct an investigation in search of evidence or witnesses helpful to your case. Your attorney can request necessary documents from your former employer so you do not have to deal with them directly.
3. Filing a Complaint
If you lose your job and believe you have a wrongful termination claim against your former employer, contact an experienced California employment attorney to discuss your options and goals. If many cases, you never need to file a lawsuit.
For instance, if your firing was related to discrimination or harassment, you would file a complaint with the California Civil Rights Department (CRD). The CRD will investigate your claim and may try to mediate a resolution. Otherwise, the CRD may issue a right-to-sue notice, allowing you to then file a lawsuit in civil court.
Or if your firing stemmed from a wage and hour dispute, you can file a claim with the California Labor Commissioner’s Office. If they cannot resolve your case, you still have the option of suing.
The benefits of filing a claim through a government agency are that there are no court filing fees, they investigate your case, and they typically offer mediation. However, to get all of the damages you are entitled to, it may be necessary to file a formal lawsuit in pursuit of a settlement or a trial verdict.
Just be sure not to delay consulting with an attorney. Depending on your situation, the time limit to file a claim can be as short as 180 days after your firing, as the following table shows.
| Type of Claim | Deadline to File |
| Breach of Contract (Written) | 4 years from the date of termination |
| Breach of Contract (Oral/Implied) | 2 years from the date of termination |
| Discrimination / Harassment (FEHA) | 3 years to file a complaint with the CRD |
| Public Policy Violation | 2 years from the date of termination |
| WARN Act Violation | 3 years from the layoff |
| Public Entity (Govt Employer) | 6 months to file a tort claim |
If you miss these deadlines, your case may be dismissed forever.20
There is a limited amount of time to sue for wrongful termination.
4. Money and Remedies
Some victims of wrongful termination just want their jobs back. Others want as much money as possible. Still others want systemic change so that their former boss cannot mistreat their workers again.
Whatever your situation and goals, your attorney will fight for the most favorable resolution possible. There are six types of wrongful termination damages you may be entitled to.
- Lost wages and benefits plus interest. This is the back pay and front pay you reasonably could have expected to earn had you not been wrongfully fired. However, this amount of unpaid wages will be reduced (“mitigated”) by the wages and benefits that you actually earned – or could have earned – from substantially similar employment.21
- Job reinstatement. In reality, most people do not want their old job back following a contentious legal proceeding.
- Pain and suffering. This can include compensation for physical pain, mental suffering, loss of enjoyment of life, grief, anxiety, loss of professional reputation, or humiliation arising from the traumatic experience of losing the job.
- Attorney’s fees and litigation costs. You can collect attorney’s fees from your former employer in a few types of wrongful termination cases, such as those involving FEHA or Sarbanes-Oxley.22
- Punitive damages. Punitive damages are only awarded in cases where the employer is found to be guilty of oppression, fraud or malice. They are more common in discrimination cases.23
- Declaratory and injunctive relief. This is when the judge orders your former employer to take certain actions, such as issuing you a formal apology or undergoing a sexual harassment training course.
How much money you get varies depending on your wrongful termination case. For example, breach of contract cases typically yield lost wages and benefits. However, cases involving public policy violations may lead to extensive emotional distress damages.24
Out-of-court settlements are typically lower than what a jury would return should the case go to trial. Still, settlements are quicker and easier than trials. Note that any attorneys’ fees and court costs come out of the settlement amount.
If your former employer is covered by EPLI insurance, then the insurance company rather than the employer will be in charge of its defense.
5. What if I quit my job?
In California, you can still pursue a wrongful termination claim if you were not actually fired. You would just have to show you were constructively discharged. This means that:
- Your employer intentionally created – or knowingly permitted – working environments that were so intolerable that a reasonable employer would expect a reasonable employee to resign because of them; and
- Your employer would not have been within their rights to terminate you outright due to an implied oral contract or because termination would have been against public policy.25
Winning wrongful termination cases where you resigned instead of getting fired can be tricky. The key is presenting the court with enough evidence to make the jury believe that they would have also quit if they were in your position.
The following chart lists working conditions that may or may not justify a constructive termination claim:
| ❌ Unpleasant / Difficult (Likely NOT Constructive Discharge) | ✅ Intolerable / Illegal (Likely IS Constructive Discharge) |
| A Rude or Demanding Boss (Unless they are discriminatory) | Continuous Harassment (Based on race, gender, age, etc.) |
| Poor Performance Reviews (Even if you feel they are unfair) | Criminal Demands (Being told to break the law or be fired) |
| Demotion or Pay Cut (Without other illegal motives) | Safety Violations (Refusal to provide required safety gear) |
| Stressful Workload (Long hours or “impossible” deadlines) | Retaliation (Punishment for filing a claim or whistleblowing) |
| Single Isolated Incident (One heated argument or mistake) | Humiliating Demotion (for example, VP demoted to entry-level janitor) |
Frequently Asked Questions
What is the average wrongful termination settlement in California?
While every case is different, many wrongful termination cases in California settle for between $5,000 and $80,000. However, cases involving discrimination, whistleblower retaliation, or high-income earners can result in settlements significantly higher, sometimes reaching into the hundreds of thousands or even millions of dollars.
Can I get unemployment if I was wrongfully terminated?
Yes, usually. In California, you are generally eligible for unemployment benefits unless you were fired for “misconduct” (such as theft or chronic absenteeism). If you were fired for an illegal reason—or simply because you were not a “good fit”—you typically remain eligible for benefits. If your employer tries to deny your claim, you have the right to appeal the EDD’s decision.
How do I prove wrongful termination if I didn’t have a written contract?
You do not need a written contract to sue. We can often prove wrongful termination using other forms of evidence, such as:
- Emails and text messages showing a timeline of hostility or retaliation.
- Positive performance reviews that contradict your employer’s claim that you were “poor at your job.”
- Witness testimony from co-workers who heard discriminatory remarks.
- Employee handbooks that created an implied contract which your employer violated.
Can I sue for wrongful termination if I am an “at-will” employee?
Yes. Being an at-will employee means your boss can fire you for no reason, but not for an illegal reason. “At-will” status is not a shield that allows employers to discriminate, retaliate, or violate public policy. If the motivation for your firing was illegal, your at-will status does not matter.
How long do I have to file a wrongful termination lawsuit?
The deadline (statute of limitations) depends on the legal ground for your lawsuit:
- Violation of Public Policy: 2 years from the date of firing.
- Discrimination/Harassment (FEHA): 3 years to file a complaint with the Civil Rights Department (CRD).
- Breach of Written Contract: 4 years.
- WARN Act Violation: 3 years.
Because these deadlines are strict, it is vital to consult with a California employment attorney as soon as possible after losing your job.
Additional Reading
For more information about California wrongful termination laws, refer to our related articles:
- Examples of wrongful termination – Scenarios where you may be able to sue an employer for unlawfully firing you.
- How to prove wrongful termination – Methods and strategies for persuading a judge or jury that your firing violated the law.
- Statute of limitations to bring a wrongful termination case – Detailed discussion of exactly when you have to file a claim depending on your type of wrongful firing case.
- Wrongful termination damages – In-depth guide to what remedies you may be entitled to after being illegally let go from your job.
- Average settlement in wrongful termination cases – Overview of the standard outcome in unlawful firing cases.
Legal References
- See Foley v. Interactive Data Corp. (California Supreme Court, 1988) 47 Cal.3d 654; Jameson v. Pacific Gas & Electric Co. (2017) 16 Cal.App.5th 901; Guz v. Bechtel National, Inc. (2000) 24 Cal.4th 317; Khajavi v. Feather River Anesthesia Medical Group (2000) 84 Cal.App.4th 32; See Lazar v. Superior Court (1996) 12 Cal. 4th 631; Faigin v. Signature Group Holdings, Inc. (2012) 211 Cal.App.4th 726; Touchstone Television Productions v. Superior Court (2012) 208 Cal.App.4th 676.
- Title VII of the Civil Rights Act of 1964: 42 U.S.C. § 2000e-2(a). Age Discrimination in Employment Act (ADEA): 29 U.S.C. § 623. Americans with Disabilities Act (ADA): 42 U.S.C. § 12112(a). Genetic Information Nondiscrimination Act (GINA): 42 U.S.C. § 2000ff-1. Uniformed Services Employment and Reemployment Rights Act (USERRA): 38 U.S.C. § 4311. Immigration and Nationality Act (INA): 8 U.S.C. § 1324b(a)(1)(B). Bostock v. Clayton County (2020) 590 U.S. 644. California Government Code § 12940(a). California Government Code § 12926(r). California Government Code § 12941.
- Pregnancy Discrimination Act: 42 U.S.C. § 2000e(k). California Government Code § 12945(a). California Labor Code § 1030–1033.
- California Government Code § 12926(i) and § 12940(a). California Labor Code § 1101 and § 1102. California Labor Code § 923, Government Code § 12945.1 and § 12945.2. San Francisco Administrative Code, Chapter 12A.1.
- Harris v. City of Santa Monica (2013) 56 Cal.4th 203.
- 29 U.S.C. § 2615(a)(2). California Government Code § 12945.2.
- California Labor Code § 246.5(c)(1).
- California Labor Code § 230.3. California Government Code § 12945.8 (effective January 1, 2025).
- California Labor Code § 98.6. California Labor Code § 232.5.
- Same. See also Vasquez v. Franklin Management Real Estate Fund, Inc. (2013) 222 Cal.App.4th 819. Senate Bill 1044 (2022); California Labor Code § 1139.
- California Labor Code § 98.6. California Labor Code § 1101 and § 1102.
- California Government Code § 12940. Bailey v. San Francisco District Attorney’s Office (2024) 16 Cal.5th 611 (a single incident of harassing conduct, such as the use of a racial epithet by a co-worker, can be sufficient to create an actionable hostile work environment under FEHA).
- California Labor Code § 132a.
- California Labor Code § 1102.5.
- Public Law 107-204.
- California Government Code § 12652.
- See note 14. Mokler v. County of Orange (Cal.App. 2007) 157 Cal.App.4th 121.
- California Labor Code § 1400 – § 1400.5.
- See California Labor Code § 1102.5. See also: Simers v. Los Angeles Times Communications, LLC (2018) 18 Cal.App.5th 1248; Featherstone v. Southern California Permanente Medical Group (2017) 10 Cal.App.5th 1150; Davis v. Farmers Ins. Exchange (2016) 245 Cal.App.4th 1302; Yau v. Allen (2014) 229 Cal.App.4th 144; Diego v. Pilgrim United Church of Christ (2014) 231 Cal.App.4th 913; Kim v. Konad USA Distribution, Inc. (2014) 226 Cal.App.4th 1336; Ferrick v. Santa Clara University (2014) 231 Cal.App.4th 1337; Mendoza v. Western Medical Center Santa Ana (2014) 222 Cal.App.4th 1334; Alamo v. Practice Management Information Corp. (2013) 219 Cal.App.4th 466; Harris v. City of Santa Monica (2013) 56 Cal.4th 203; Dutra v. Mercy Medical Center Mt. Shasta (2012) 209 Cal.App.4th 750; Kelley v. The Conco Cos. (2011) 196 Cal.App.4th 191; Scott v. Phoenix Schools, Inc. (2009) 175 Cal.App.4th 702; D’sa v. Playhut, Inc. (2000) 85 Cal.App.4th 927.
- See, for example, 42 U.S.C. § 2000e-5(e)(1) (deadline to file with the EEOC).
- CACI 3903P – Damages From Employer for Wrongful Discharge (Economic Damage). CACI 3963 – Affirmative Defense – Employee’s Duty to Mitigate Damages.
- California Government Code § 12965. See note 15.
- CACI 3940 – Punitive Damages.
- CACI 2406 – Breach of Employment Contract – Unspecified Term – Damages. See note 21.
- Turner v. Anheuser-Busch, Inc. (1994) 7 Cal.4th 1238.