Wrongful Termination Claims in California: Damages and Settlements

The Law Offices of James L. Arrasmith

Wrongful termination is when an employee in California gets fired for an illegal or improper reason prohibited by law. California, like most states, is an at-will employment state. This means employers can generally fire workers for any reason or no reason at all.

However, exceptions exist where terminations violate public policy, an implied contract, or when discrimination, retaliation or other unlawful motives are involved. Employees who get discharged illegally have grounds to sue for wrongful termination and recover lost wages, emotional distress damages, attorney’s fees, reinstatement and other compensation.

This article provides a detailed overview of wrongful termination laws in California. Topics covered include:

The 7 main grounds for wrongful discharge claims

  • Statutes of limitations
  • Evidence needed to prove wrongful firing
  • Constructive discharge
  • Typical damages and settlements
  • Average payouts in wrongful termination cases
  • At-Will Employment and Wrongful Discharge Exceptions

Under California Labor Code 2922, employment is presumed to be “at will” unless there is an agreement establishing otherwise. At-will means the employment relationship can be terminated by either the employer or employee, at any time, for any reason or no reason at all.

However, numerous exceptions exist where terminating or laying off an employee would be unlawful. California’s public policy strongly favors protecting workers from firings that contradict fundamental principles of fairness and personal rights.

Below are the seven primary situations where terminating an at-will employee could constitute wrongful discharge and give rise to a lawsuit against the employer.

Discrimination


The California Fair Employment and Housing Act (FEHA) prohibits employers from terminating workers based on protected characteristics like race, religion, national origin, gender, sexual orientation, age, disability or veteran status.

It is also illegal under FEHA for companies to retaliate against employees who oppose workplace discrimination or harassment, file claims with the DFEH or participate in investigations.

Whistleblowing


California Labor Code 1102.5 makes it unlawful for employers to retaliate against workers who disclose reasonably believed violations of state or federal laws, rules, or regulations. This includes reporting illegal activities directly to supervisors or government agencies.

Other whistleblower laws like the Sarbanes-Oxley Act and California False Claims Act provide additional protections in certain situations.

Implied Contracts


Employers may inadvertently create “implied” contracts not to terminate except for good cause through oral assurances, employee handbooks or personnel policies spelling out termination protocols. Breaching implied contractual obligations can constitute wrongful discharge.

Public Policy


It is wrongful termination if an employer fires a worker for engaging in protected activities, exercising legal rights or refusing to break the law. For example, companies cannot terminate employees who perform jury duty, vote, seek workers’ compensation benefits, or oppose illegal directives.

Worker’s Compensation


California law prohibits employers from discharging or retaliating against employees for filing valid workers’ compensation claims for work-related injuries.

Mass Layoffs


The federal WARN Act and California’s Mini-WARN Act require larger employers to provide 60 days’ advance notice before mass layoffs or plant closures. Violations create liability for back pay.

Leave and Pay Complaints


Terminating workers for requesting or taking medical leave, paid sick days or complaining about wage/hour violations is presumptively retaliatory and illegal.

Burden of Proof in Wrongful Termination Cases

Since California presumes at-will employment, the initial burden lies with wrongly discharged employees to prove their terminations were improper. This requires showing:

An employer-employee relationship (not independent contractor)
Discharge or adverse employment action
The termination violated public policy or a specific law
Damages resulted
If the employee establishes a prima facie case of wrongful termination, the burden shifts to employers to prove there were legitimate, non-retaliatory grounds for discharge.

Employers often claim that after-acquired evidence of misconduct uncovered post-termination retroactively justifies the firing. However, this defense fails if the employer lacked knowledge of the misconduct when it occurred.

Damages in Wrongful Termination Lawsuits

Prevailing plaintiffs in wrongful discharge cases can recover:

Lost wages and benefits
Front pay
Emotional distress
Reinstatement or injunctive relief
Attorney’s fees, in some cases like discrimination claims
Punitive damages, where employers acted maliciously
However, employees have a duty to mitigate damages in wrongful termination cases. This means the compensation owed is reduced by actual earnings or the amount the employee could have earned through making reasonable efforts to find new employment.

Filing Deadlines and Statutes of Limitation

In California, employees must file wrongful termination lawsuits within the following time periods after discharge:

Two years for breach of oral or implied contract
Two years for wrongful discharge in violation of public policy
Three years for FEHA discrimination, harassment, and retaliation claims
And three years for whistleblowing claims under Labor Code 1102.5
Three years for California WARN Act violations
180 days under Sarbanes-Oxley


Constructive vs. Actual Discharge

Under the constructive discharge doctrine, employees may sue for wrongful termination if employers intentionally create or knowingly permit intolerable working conditions that any reasonable person would feel compelled to resign under.

Examples include reductions in pay or responsibilities, harassment, dangerous conditions, or sustained abuse.

Constructive discharge lawsuits have the same elements and remedies as if the employee was formally fired. The primary difference is constructive discharge is inferred rather than actual.

Proving Wrongful Termination

Wrongfully discharged employees can utilize several types of evidence to meet their burden of proof, including:

Company documents – Personnel files often contain incriminating performance reviews, disciplinary records, and derogatory emails or memos.
Witness statements – Eyewitness accounts from colleagues who observed unlawful behavior by decision-makers may corroborate unlawful motives.
Employment records – Statistics and documents showing patterns of discrimination or OSHA violations help show wrongdoing permeated the workplace.
Medical records – Doctor reports confirming the employee’s workplace injury or severe health condition necessitating leave make retaliation more evident.
Contemporaneous notes—Detailed records compiled by the employee memorializing unlawful statements or directives provide crucial evidence if they are made close to the events.
Admissions – Deposition testimony or statements made by the employer during DFEH interviews can constitute binding admissions if corroborated.
Expert testimony—Vocational experts, economists, physicians, and wrongful termination lawyers can analyze evidence and render opinions supporting lost income, emotional distress, and professional standards.


Average Settlement Amounts

Although precise statistics are lacking, knowledgeable California employment attorneys estimate the average wrongful termination settlement falls between $40,000-$60,000. However, verdicts and case values vary substantially based on:

Type of claim – Discrimination, whistleblowing, and public policy discharges typically yield higher payouts than breach of contract.


Desire to avoid publicity – Well-known companies often pay more for confidentiality.
Employer size – Larger entities pay more due to more excellent resources and exposure.
Damages – Employees with higher incomes and long tenures lose the most future income.
Location – Juries in urban areas like Los Angeles and San Francisco tend to award more significant damages.
Liability risks – Clear-cut evidence of outrageous employer misconduct increases potential liability.
Insurance coverage – EPLI policies boost employers’ ability to settle, sometimes over the objection of individual decision-makers.
Helpful Legal Resources

For additional information on pursuing potential wrongful termination claims in California, review the following resources:

DFEH – https://www.dfeh.ca.gov/complaintprocess/

EEOC – https://www.eeoc.gov/how-file-charge-employment-discrimination

California Labor Commissioner’s Office – https://www.dir.ca.gov/dlse/HowToFileWageClaim.htm

Nolo legal encyclopedia – https://www.nolo.com/legal-encyclopedia/wrongful-termination-was-firing-illegal-32282.html

In summary, most California employees serve at the will of their employers. However, numerous exceptions protect workers from terminations that contravene public policy or violate legal rights and protections. Employees unlawfully discharged can recover substantial damages if they act quickly to preserve evidence and assert claims. Most wrongful termination cases settle out of court, but jury verdicts can be significant in egregious cases.

Client Reviews

James Arrasmith is one smart attorney! He understood my problem and came up with a great solution right away. I can depend on him to listen and ask the right questions to get straight to my issues. His availability is...

Alan Murphy

Hiring James to handle my eviction / landlord tenant case is one of the best decisions I’ve ever made. He assisted me every step of the way and made the process smooth and easy. It was obvious that he truly cared about...

Monica Martínez alvarado

I've had a lot of attorneys in my life, and James is by far the best attorney that I've ever hired. He helped me with my case from start to finish and clearly explained the process to me without making it overly complex...

DD M

Great consultation, efficient, attorney. I needed possession of my home, Mr. Arrasmith acted swiftly and was able to provide me the information I needed to understand what could have been a lengthy process. Mr...

Nadia Faraci

James is an amazing attorney!! I had never hired a lawyer before (and was very nervous), but James took hours of his time to explain the entire procedure to me. He gave me a thorough consultation, and I was so impressed...

Ledi

James was the only person to answer the phone at 7am on a Saturday morning. My first phone call to him was as a scared and stressed woman with no idea on where to even begin to explain the sort of help I needed. James...

Renae Elise

James helped me with two landlord tenant issues. In both cases, I was able to expeditiously resolve my issue with the tenant. I appreciate his genuine care for his clients; a rare trait in an attorney. I would highly...

theresa26 r

I cannot begin to describe how amazing and reassuring it was to have James guide me through the most challenging moment of my life. When my mother let me know she would soon be passing from cancer and wanted to leave...

Tricia Matsis

James Arrasmith did a great job for me on my legal matter. From the first time I talked to him he was very professional and knew what he was talking about. I would recommend James Arrasmith to anyone who needs help with...

Alvin Warren

I can't express enough how much James put my heart at ease. He has really been dugiligant at getting things done vs what I have experienced before using other lawyers. Highly recommend James if your looking for trust...

Jeremy Rasmussen Finnif Skate

James Arrasmith is a fantastic attorney. He is respectful and knowledgeable! Always very responsive and really takes his time explaining everything so you can understand it. I would highly recommend you meet with James...

Andrew Noseworthy

Mr. Arrasmith was cocounsel on a complex case, but was able persuade a notoriously bad judge to go along with the resolution. He’s a fine lawyer that works hard to make sure he is prepared to win the case. I highly...

James Pearson

Highly recommend choosing James. He was extremely responsive always making sure I understood every step of the process. In addition, he would periodically check in with me before important decisions needed to be made.

Tulsi

He is experts and reasonable attorney.

Ahmad Ali Shinwary

Best attorney I ever worked with... he takes time to explain the whole process and and will make sure you are happy with his work. We did a living trust and he helped me with an eviction case. I highly recommend him!

Alina Cojocari

James is an excellent attorney. I recommend him to anyone who's looking for someone who cares and wants to help win their case! :)

Allen Esealuka

I had a few questions about my situation, I needed some legal advice so I went ahead and contacted the Arrasmith firm. James was very helpful and polite, I asked him about a dozen questions and will be pursuing llegal...

Amber Styles

I cannot begin to describe how amazing and reassuring it was to have James guide me through the most challenging moment of my life. When my mother let me know she would soon be passing from cancer and wanted to leave her...

Tricia

James is a professional with outstanding customer service. We hired him to take care of an issue for us and he delivered as promised. I highly recommend him if you have any ongoing legal issues. James it's absolute...

Aztec Gold99

He will go out of his way . The best lawyer in Sacramento!I don’t know what I would do without lawyer james.

Bryan

Very professional, understanding and willing to assist in any way he can. I am most definitely keeping James as my one stop shop lawyer.

Brad Naylor

I am so happy I found Mr. Arrasmith's law firm! I couldn't have been happier with my decision to hire James. He took my case from point A to point Z and kept me informed every step of the way. If I ever need an attorney...

Bryce Colburn

James is a wonderful addition to the legal community. He is hard working, bright and ethical. He goes the extra mile for his clients.

Caitlin Ross

He was a great attorney.

Devon Campbell

I contacted Mr. Arrasmith regarding a disability related inquiry for a family member. Mr. Arrasmith provided excellent and immediate responses to my questions. I felt as though he truly cared about the well being of my...

Anonymous

Great consultation, efficient, & positive attorney. I needed possession of my home, Mr. Arrasmith acted swiftly and was able to provide me the information I needed to understand what could have been a lengthy process...

Nadia

I had a few questions about my situation, I needed some legal advice so I went ahead and contacted the Arrasmith firm. James was very helpful and polite, I asked him about a dozen questions and will be pursuing llegal...

Amber

James is a great guy. He has helped me to start a very difficult case. That I was nervous to do. He has made me Confident that he will fight hard on my case.

Rachel

I am so happy I made a decision to hire James to help me with my case. He was very professional and assisted me every step of the way. I was able to get a very positive settlement on my case. I couldn’t be happier!

Ledi

James has helped me tremendously with my legal matter by going over all the forms with me and clearly explaining how to complete them. He has made everything easy for me. I am very glad I called James!

Patty

James did a great job helping us with getting our settlement. Followed up in timely manners and updates always provided. Thank you for your help!

Anonymous

Gave James smith a call late at night with an immediate answer, he is very quick to respond and was eager to answer any questions I had.

Erika

Mr. Arrasmith was great, he answered all my questions and was very helpful with my legal matter. Thanks again James.

Alvin

Mr. Arrasmith was great, he answered all my questions and was very helpful with my legal matter. Thanks again James.

Alvin

Mr. Arrasmith was cocounsel on a complex case, but was able persuade a notoriously bad judge to go along with the resolution. He’s a fine lawyer that works hard to make sure he is prepared to win the case. I highly...

James

I've had a lot of attorneys in my life, and James is by far the best attorney that I've ever hired. He helped me with my case from start to finish and clearly explained the process to me without making it overly complex...

Darren

James is a great lawyer! He is honest and very trustworthy. He will give you sound legal advice.

Jason Motto

Great service and customer service. Very professional too, thanks James and Maria!! Having a bilingual attorney who knows so many different aspects of the law is a BIG plus.

JC R

I found James online after an extensive search. He was knowledgeable and worked with me on a payment plan I could afford. I'm happy I picked him for dealing with my awful landlord. He helped me get the settlement I...

Jenn C

Lawyer James Arrasmith For me He very was very approachable and likeable as a person . I felt very comfortable with the knowledge, and information shared for our case. which we got desired result from. He to me is a...

John Davis

James is a wonderful lawyer and person! He is hardworking , ethical, quick and effective lawyer! He knows what he is doing.

Ka Saelee

James Arrasmith always does amazing job helping me with my landlord and tenant cases!! He is my go-to attorney when I need assistance in evicting tenants. I like how he also represents tenants as well as landlords - so...

Kerry Davis

No one likes to need an attorney, but when you do, James is amazing to have in your corner! He is smart, professional, patient, and always makes sure his client is comfortable and confident with the next steps. I refer...

Kristen Trexler

Best lawyer he will get the job done went out of his way totally

Larry Yabut

Mr. Arrasmith and his team are amazing. Mr. Arrasmith is very knowledgeable and has been amazing through our whole process. He treats people like a human being and not a paycheck, I would highly recommend him to...

Magan Mellinger

No one likes to need an attorney, but when you do, James is amazing to have in your corner! He is smart, professional, patient, and always makes sure his client is comfortable and confident with the next steps. I refer...

Kristen

I would highly recommend James. I did lots of research searching for a great Attorney in the area. He makes you feel hopeful during a difficult times. His knowledge and expertise was great!

Maria Guardado

I had a personal issue and needed to consult with a lawyer. James Arrasmith took his time to explain everything so that I could understand exactly what my options were and the best way to go about my next move. I would...

Mark Hodges

A Very Nice, Personable Attorney/Person!! He is Very Patient and Willing to Listen to My {Tour} Case/Problems>I would Highly Recommend James to Anyone Seeking Fair and Equitable Justice!! Mark, CA.

Mark Loeffler

Thank you Mr James for helping me. What a great attorney! If you need help call Mr Arrowsmith!

Marva Davis

I give James Arrowsmith Attorney at Law 5 stars not just because he supports and represents CAED (our Non- Profit Organization that works with children ) but also because of how decent a person I've found him ...

Marvell Wilson

I was sooooo nervous about my case until I called James. He literally made the entire process simple and easy for me. I cannot recommend him highly enough! He is the most amazing attorney I’ve ever had!

Peyton

James has helped me tremendously with my legal matter by going over all the forms with me and clearly explaining how to complete them. He has made everything easy for me. I am very glad I called James!

Patsa Hin-udom

I am Latina and my English is not very good, therefore the attorney made sure that there was an assistant who spoke Spanish and who translated everything he told me and answered all my questions. Excellent service, I...

Paula Barriga

James is fantastic! He answered all of my questions and gave me clear guidance. If you are looking for an experienced and knowledgable attorney, I highly recommend James. Amazing Lawyer!

peyton cooks

James has a very good heart. He takes his cases personally as if it was him. He is a very nice understanding guy

Rachel Ottley

James is very knowledgeable, professional, and dependable. He patiently guided me through my estate planning and pre-nuptial questions, and made both processes much easier for me to understand. Highly recommended.

Sanat Sahasrabudhe

James arasmith is an excellent attorney when I needed help or advice he was always there to answer my calls or emails a very kind person listens & cares.

Tariq Johnson

Thank you so much for being highly responsive. Making I understand every step of the process. As well as checking in with me before important decisions need to be made.

Tulsi Patel

Very friendly, personable, and professional. I was able to get through my legal issue relatively smoothly and had exceptional support through the entire process. Pricing was reasonable and the billing process was not...

V Cat

I had some legal questions, and contacted James Arrasmith Law firm. His response was quick, and very helpful.

vera vlasenko

I highly recommend James Arrasmith. He really listens to your needs & truly cares about his clients. He is very professional & provides great results!

Vicky Tisdale

Contact Us Now

(916) 704-3009