In California, the concept of at-will employment is a foundational part of the employer-employee relationship. However, while this doctrine may seem straightforward, employers need to be aware of important exceptions and best practices to avoid costly legal disputes.
At Kraeber Law Office, we help employers understand the complexities of at-will employment and protect their businesses through proactive legal guidance. Below is a breakdown of what at-will employment really means and what every California employer should know.
What Is At-Will Employment?
At-will employment means that either the employer or the employee can terminate the employment relationship at any time, with or without cause, and with or without notice. This is the default employment arrangement in California unless there is a contract stating otherwise.
However, at-will does not mean “anything goes.” Employers must still comply with a wide range of legal protections, including those related to discrimination, retaliation, and public policy violations.
Key Exceptions to At-Will Employment in California
Understanding the limits of at-will employment is critical.
Some of the main exceptions include:
- Implied Contracts: Even without a written contract, statements made during hiring, during employment, or in employee handbooks can create an implied agreement for continued employment.
- Discrimination Laws: Terminating an employee based on race, gender, religion, age, disability, or other protected class is illegal under both federal and California law.
- Retaliation Protections: Employees cannot be fired for whistleblowing, or for filing complaints or participating in investigations related to harassment, wage violations, or workplace safety.
- Public Policy Violations: It’s unlawful to terminate someone for reasons that violate public policy - for example, refusing to engage in illegal activity or exercising a legal right (like voting or serving on a jury).
Best Practices for Employers
To stay compliant and minimize legal risks, local employers should follow these practical steps:
- Document Everything: Keep detailed records of performance issues, warnings, and communications.
- Train Supervisors: Ensure managers understand what they can and cannot say or do during the hiring and termination process or during employment.
- Use Clear Policies: Draft employee handbooks and offer letters that reinforce the at-will nature of employment.
- Conduct Exit Interviews: These can help uncover potential legal issues before they escalate.
When to Consult an Employment Attorney
If you're unsure whether you're handling an employment matter appropriately - or are facing potential legal action - it’s important to consult with an experienced employment law attorney.
At Kraeber Law Office, we provide straightforward legal counsel to help California businesses or businesses with California-based employees understand their rights and responsibilities as employers. From drafting policies to handling wrongful termination claims, we’re here to support your business every step of the way.
Protect Your Business. Know the Law.
Don’t leave your business vulnerable to employment disputes. Whether you're hiring, disciplining, or terminating employees, understanding at-will employment is essential.
Call Kraeber Law Office today at (925) 319-5791 for a confidential consultation or contact us online.