Losing a job is stressful on its own. It can feel even worse when you suspect the real reason had little to do with your work. Maybe you were let go soon after you reported a problem, asked for medical leave, or mentioned a health condition. It is natural to wonder whether what happened was legal.
Unlawful termination is a firing that breaks a law, a contract, or a fundamental public policy. California is an “at-will” state, but that does not give employers the freedom to fire someone for any reason at all.
This guide explains what unlawful termination means, common examples, what it does not include, and the steps to consider if you think it happened to you.
Disclaimer: This article is for general information only and is not legal advice. Reading it does not create an attorney-client relationship. Laws change, and every situation is different, so speak with a licensed attorney about your specific facts.
What Is Unlawful Termination?
Unlawful termination happens when an employer ends someone’s employment for a reason the law prohibits, or in a way the law does not allow. People often call this “wrongful termination,” and the two phrases are commonly used to mean the same thing.
Unlawful Termination vs. Unfair Termination
A firing can be harsh, sudden, or poorly handled and still be legal. The key question is not whether the decision was fair. It is whether the reason, or the way it was carried out, broke a legal rule.
A manager who fires someone over a personality clash may be unreasonable, but that alone is generally not unlawful. A manager who fires someone because of their race, or because they filed a complaint, may be breaking the law.
California’s At-Will Rule and Its Limits
Under California Labor Code section 2922, employment with no set term can generally be ended by either side on notice. In practice, an employer can often let someone go for a good reason, a poor reason, or no stated reason.
That rule has limits. California recognizes exceptions when a termination violates anti-discrimination laws, retaliation protections, fundamental public policy, or an employment contract. In its 1980 decision in Tameny v. Atlantic Richfield Co., the California Supreme Court recognized that public policy places limits on an employer’s right to discharge an at-will employee.
Common Examples of Unlawful Termination
Unlawful termination can take several forms. The most common fall into a few categories.
Discrimination
California’s Fair Employment and Housing Act (FEHA), enforced by the Civil Rights Department, prohibits firing someone because of a protected trait. The California Labor Commissioner’s Office lists traits that include race, color, ancestry, religion, age (40 and over), disability, medical condition, genetic information, sex (including pregnancy), sexual orientation, marital status, military and veteran status, and national origin.
Here are some examples:
- Age: Letting go of a worker who is 40 or older because of their age is age discrimination.
- Disability: Firing someone because of a disability, or because they asked for a reasonable accommodation, may be disability discrimination.
- Pregnancy: Ending a job because of pregnancy, childbirth, or a related condition can be pregnancy discrimination.
- Race: Terminating someone because of their race, color, or ethnic background may be racial discrimination.
Not every unfair firing counts as discrimination. For a closer look at how the law frames the concept, see this guide to the legal definition of discrimination.
Retaliation
Employers generally cannot punish workers for using their legal rights. The U.S. Equal Employment Opportunity Commission (EEOC) has stated in its enforcement actions that Title VII prohibits retaliating against an employee who opposes what they reasonably believe is race discrimination. California’s civil rights agency has also said that employers violate the law when they retaliate against employees who exercise their FEHA rights.
Other California laws may protect employees who take certain actions. Examples include:
- Whistleblowing: Reporting a suspected legal violation, which is addressed in Labor Code section 1102.5.
- Wage complaints: Asking about or complaining about unpaid wages, which is addressed in Labor Code section 98.6.
- Workers’ compensation: Filing an injury claim, which is addressed in Labor Code section 132a.
Whether one of these laws applies depends on the facts and on the wording of the statute.
Violation of Public Policy
Courts may also treat a firing as unlawful when it punishes an employee for doing something public policy supports. Commonly cited examples include refusing to commit an illegal act, reporting wrongdoing, and serving on a jury. Taking protected leave, such as leave under the California Family Rights Act, can raise similar issues.
Breach of Contract
Some employees have a written or implied agreement that limits when they can be fired, such as a promise to terminate only for good cause. Courts look closely at the actual wording and the circumstances. A statement that employment can end “at any time” does not by itself create a for-cause promise.
Is Constructive Discharge an Unlawful Termination?
Sometimes an employer does not fire anyone outright. Instead, working conditions become so intolerable that a person feels forced to quit. This is often called constructive discharge.
In some cases, the law may treat a forced resignation like a firing. The standard can be hard to meet, and the facts matter a great deal. If you are thinking about resigning because of how you are being treated, write down what has happened before you leave.
Signs Your Termination May Have Been Unlawful
No single factor proves that a firing was unlawful. Still, certain patterns are worth raising with a lawyer:
- Suspicious timing: You were fired soon after a complaint, a leave request, an injury report, or an accommodation request.
- Shifting explanations: The reasons given by your employer change or do not match the records.
- Sudden criticism: Strong performance reviews were followed by abrupt negative feedback.
- Unequal treatment: Coworkers who broke the same rule were not disciplined.
- Biased comments: Remarks were made about your age, health, race, pregnancy, or another protected trait.
- Skipped procedures: The company did not follow its own discipline or termination policies.
When Termination Is Usually Lawful
Not every job loss is unlawful. Employers can generally end employment for legitimate, non-discriminatory reasons, such as:
- Performance problems: Documented and consistently applied standards.
- Misconduct: Violations of clear workplace rules.
- Business needs: A genuine layoff, restructuring, or position elimination.
- End of a contract term: When the agreement ends as written.
A stated reason is not always the real reason, though. If it appears to be a cover for something else, a lawyer can examine whether the evidence supports it.
What to Do If You Think You Were Fired Unlawfully
If something feels wrong, take calm and steady steps. Early actions can make a real difference later.
Write Down What Happened
Record the dates, names, and exact words used, while your memory is fresh. Note when you raised any complaint, request, or concern, and when the adverse decision followed.
Save Your Records
Keep copies of your offer letter, reviews, pay records, termination notice, and relevant messages. Store them somewhere your employer cannot access, and do not take confidential company files you are not entitled to have.
Be Careful With Paperwork
Employers sometimes offer severance in exchange for a signed release of legal claims. Before you sign anything, consider having an attorney review it so you understand what you may be giving up.
Know Your Deadlines
Time limits apply, and they differ by agency and by type of claim.
- EEOC: The agency explains that a charge generally must be filed within 180 calendar days, extended to 300 calendar days where a state or local agency enforces a similar law. You can review the details in the EEOC’s filing guide.
- California Civil Rights Department: For employment cases, the Civil Rights Department says you must submit an intake form within three years of the date you were last harmed. It also explains that you must obtain a right-to-sue notice before filing your own lawsuit in court.
- Other claims: Claims under other laws, such as wage-related retaliation or public policy claims, can have different deadlines.
Because figuring out the right deadline can be complicated, it is wise to get advice early.
Speak With an Employment Attorney
A lawyer can explain which laws may apply, review your evidence, and help you decide whether to file a complaint, negotiate, or pursue a lawsuit.
What Can You Recover in an Unlawful Termination Case?
Remedies depend on the claim and the facts, and no outcome is guaranteed. In its lawsuits over retaliatory firings, the EEOC has sought back pay, compensatory damages, punitive damages, and injunctive relief.
In general, a successful claim may involve lost pay, compensation for emotional distress, and, in some cases, punitive damages or changes at the workplace. A court or agency decides what applies in each case.
FAQs
Is unlawful termination the same as wrongful termination?
The terms are often used interchangeably. Both describe a firing that violates a law, a contract, or public policy.
Can I be fired without a reason in California?
Often, yes, if you are an at-will employee and the firing is not for a reason the law protects. However, an employer cannot fire you for an unlawful reason, such as discrimination or retaliation.
Is a layoff considered unlawful termination?
Not automatically. A genuine business layoff can be lawful. It may be unlawful if the people chosen were selected because of a protected trait or in retaliation for protected activity.
What if I was forced to resign?
In some situations, a forced resignation may be treated as constructive discharge. The facts are important, so it is best to speak with an attorney before you decide.
How long do I have to file a claim?
It depends on the claim. The California Civil Rights Department states a three-year window for employment complaints, while the EEOC generally uses 180 or 300 days. Other claims may differ, so seek advice promptly.
Do I need a lawyer to challenge a firing?
You can contact the CRD or EEOC without one. Still, an attorney can help you understand your options, meet deadlines, and avoid mistakes.
Final Thoughts
Unlawful termination is not simply a firing that feels unfair. It is a firing tied to a reason or method the law does not allow, such as discrimination, retaliation, a violation of public policy, or a broken contract.
If you think this happened to you, start with the facts. Write down what occurred, save your records, and learn your deadlines. Strong details can make a big difference.
You do not have to sort it out by yourself. Speaking with an employment attorney, such as the team at Eisenberg & Associates, can help you understand your rights and decide on a next step with more confidence.