Can I Be Fired If I Have a Contract With My Employer?

Like almost all states, California is an at-will employment state, meaning an employer may choose to fire an employee “at will” or for any reason. Likewise, an employee may leave a position at will and neither party needs just cause. However, there are important exceptions to at-will employment laws that are put in place to protect employees against wrongful termination in San Diego.

California’s Fair Employment and Housing Act (FEHA) prevents employers from creating hostile work environments, an unfair workplace for those with protected characteristics, or wrongfully terminating an employee. 

When Is It Wrongful Termination In California?

When an employer and employee have a valid contract that includes a specified duration of employment or states that an employee stays on the job until the job’s completion, the employer may not fire the employee until they fulfill the terms of the contract. Doing so puts the employer in breach of contract. Most contracts also include a stipulation or “covenant of good faith and fair dealing.” This requires the employer and employee to use good faith practices and avoid undermining each other. An employer may be in breach of contract if they engage in undermining behaviors and fire an employee under these circumstances. 

Breach of contract is wrongful termination in California. An employee wrongfully fired in violation of their employment contract may file a lawsuit against the employer to recover reimbursement for lost pay and the amount of payment remaining on the contract as well as for their attorney’s fees and compensation for the emotional distress caused by the wrongful termination.

An employee may file a wrongful termination lawsuit in California if they were fired under any of the following circumstances:

• In breach of contract
• For false accusations
• In retaliation for medical leave, maternity leave, or whistleblowing on employee wage violations
• In retaliation for a harassment lawsuit
• Because of a protected characteristic such as race, gender, sexuality, gender identity, pregnancy, breastfeeding, or disability.

If you’ve been fired despite remaining under an employment contract with your employer or for any of the above circumstances, you have legal options for redress, including a wrongful termination lawsuit against the employer.

What Is “Implied Contract?”

Most breaches of contract cases refer to documented, signed written contracts between an employer and employee, but depending on the circumstances of the case, some employees may sue for wrongful termination if their employer breached an implied contract. An implied contract occurs when there is an unwritten promise by an employer. For example, terms of employment that are stated in an employee handbook, verbally promised, or widely understood as true in the work environment. For instance, if everyone in the office takes an hour-long lunch break but when you do so, you’re fired because the employee rules only allow 45 minutes, you have a strong argument that there was an implied contract. If you file a lawsuit for wrongful termination due to an implied contract, the court must decide if you have a valid claim.

What Steps Should I Take After A Wrongful Termination Due to a Breach of Contract?

First, gather any evidence you have, including your written contract. Then, file a complaint with your company’s HR department. If HR doesn’t address or correct the violation, report the wrongful termination to California’s Fair Employment and Housing Department. Then, hire an employment lawyer for legal representation. After a San Diego employment attorney evaluates your case and finds that you were wrongfully terminated in breach of your employment contract, they will represent you in a lawsuit against the employer. A successful lawsuit recovers lost income, the income remaining on the contract, and compensation for emotional damages.