How to Legally Terminate an Employee

Terminating an employee is one of the most sensitive and legally risky actions an employer can take. In California, labor laws are complex, and mistakes can easily open the door to wrongful termination claims. Even when an employer has legitimate reasons, how the termination is handled often makes the difference between a clean separation and a costly lawsuit.

At Kraeber Law Office, we help local employers take the right steps to terminate employees legally and reduce the risk of litigation. Below are key considerations and best practices every Brentwood, Bay Area, and California employer should know.

Understanding California’s Termination Laws

Although California is an at-will employment state, meaning either party can end employment at any time, there are important exceptions. Employers cannot terminate employees for unlawful reasons, such as discrimination, retaliation, or violation of public policy.

Protected classes include race, gender, disability, age (40+), religion, sexual orientation, pregnancy, and many more. Employers also cannot fire employees for exercising their legal rights, such as reporting unsafe conditions or filing a workers’ compensation claim.

In addition, California requires strict compliance with wage and hour laws. When an employee is terminated, they must receive their final paycheck, including all earned compensation and accrued but unused vacation, on their last day of employment.

Best Practices to Minimize Legal Risk

When preparing for a termination, employers should:

• Document performance and conduct issues. Keep thorough records of reviews, warnings, attendance issues, and any disciplinary actions (including verbal discipline). Written documentation is critical in demonstrating that the termination is based on legitimate business reasons.
• Apply policies consistently. Unequal treatment amongst employees can give rise to claims of discrimination. Make sure the rules are enforced fairly across the board.
• Review contracts and handbooks. Check for employment agreements, union rules, or handbook provisions that may affect termination procedures.
• Use progressive discipline when appropriate. Giving employees warnings and opportunities to improve (except in cases of serious misconduct) shows fairness and reduces the appearance of arbitrary termination.
• Plan the termination meeting carefully. Ensure that the process is respectful and professional. Have all paperwork ready, including final pay.
• Provide final pay promptly. California law requires immediate payment of wages and accrued vacation at termination. Delays can result in severe financial penalties.
• Consider severance and releases. Offering severance may be appropriate in some cases, but agreements must comply with California law to be enforceable. Of note, it is not recommended to give severance pay unless the worker signs a release in exchange.

By taking these steps, Brentwood and Bay Area employers can demonstrate good faith, fairness, and legal compliance, making it harder for a terminated employee to successfully pursue a lawsuit.

Mistakes That Lead to Lawsuits

Common pitfalls include failing to document performance issues, delaying final paychecks, and ignoring local or state notice requirements. Another frequent mistake is failing to consider whether a termination might appear retaliatory, especially if the employee recently filed a complaint or exercised a workplace right.

Avoiding these missteps requires careful planning and, in many cases, legal guidance.

Why You Should Call Kraeber Law Office

Every termination is unique, and even small mistakes can result in costly penalties and/or disputes.

If you’re an employer in Brentwood, the Bay Area, or elsewhere in California, Kraeber Law Office can help you:

• Review the facts to ensure the termination is legally sound
• Prepare proper documentation and notices
• Draft severance or release agreements that hold up in court
• Protect your business from wrongful termination claims

Our goal is to help you handle employee terminations with confidence while minimizing legal exposure.

Moving Forward with Confidence

Terminating an employee is never easy, but with the right preparation and legal guidance, Brentwood, Bay Area, and state-wide employers can carry out terminations in a way that is professional, respectful, and legally defensible.

Before making a termination decision, protect your business and your reputation by consulting with an experienced employment attorney.