“You’re at-will — we can let you go for any reason.” Employees hear it constantly, and it does more work for employers than the law actually supports.

The statement is half true. California is an at-will state, and under Labor Code §2922, employment with no specified term is presumed terminable at the will of either party. Your employer can fire you for a bad reason, an unfair reason, a petty reason, or no reason at all.

What it cannot do is fire you for an unlawful reason. And the list of unlawful reasons in California is long enough that “at-will” is nowhere near the complete defense employers present it as.

At-Will Is a Presumption, Not a Rule

Start with the fact that at-will status can be modified, sometimes without either party thinking about it.

• A written contract for a definite term, or one requiring good cause for termination.
• A collective bargaining agreement, which typically requires just cause.
• An implied contract. California courts recognize that an implied agreement not to terminate without good cause can arise from the employer’s own conduct — long service, consistent promotions and raises, assurances of continued employment, and personnel policies promising progressive discipline. The leading case, Foley v. Interactive Data Corp., remains good law. Employers try to foreclose this with disclaimers in the handbook, but conduct over time can still matter.

Every employment relationship in California also carries an implied covenant of good faith and fair dealing, which limits an employer’s ability to terminate in order to deprive an employee of benefits already earned — a commission that was about to vest, for instance.

What Your Employer Cannot Fire You For

Discrimination — FEHA, Government Code §12940

The Fair Employment and Housing Act applies to employers with 5 or more employees (harassment provisions reach employers with as few as one) and prohibits termination because of:

race, color, religion or religious creed, national origin, ancestry, physical or mental disability, medical condition, genetic information, marital status, sex, pregnancy, gender, gender identity, gender expression, sexual orientation, age 40 or over, military or veteran status, and reproductive health decisionmaking.

California’s list is broader than federal law’s, and its disability standard is more protective — a condition need only limit a major life activity rather than substantially limit it.

Retaliation for protected activity

• Reporting suspected legal violations — Labor Code §1102.5. Protects reports to a government agency and internal reports to a supervisor. You need only reasonable cause to believe a violation occurred; being wrong does not remove the protection.
• Complaining about discrimination or harassment — Government Code §12940(h), including on someone else’s behalf.
• Wage and hour complaints — Labor Code §98.6.
• Health and safety complaints — Labor Code §6310.
• Discussing wages or working conditions with coworkers — Labor Code §§232, 232.5.

Since January 1, 2024, SB 497 creates a rebuttable presumption of retaliation where discipline or discharge follows within 90 days of protected activity under Labor Code §§98.6, 1102.5, or 1197.5.

Exercising a legal right or refusing to break the law

This is the Tameny claim — wrongful termination in violation of public policy, from Tameny v. Atlantic Richfield Co. (1980). It covers firing an employee for:

• Refusing to commit an illegal act
• Performing a legal obligation, such as jury duty or responding to a subpoena
• Exercising a statutory right or privilege
• Reporting a legal violation in the public interest

A Tameny claim is a tort, which means punitive damages are available — a meaningful difference from a pure contract theory. We cover it in depth in our article on Tameny claims.

Taking protected leave or requesting an accommodation

CFRA leave (employers with 5+ employees), FMLA (50+), pregnancy disability leave (5+, no service requirement), paid sick leave, military leave, and time off for jury duty or as a crime victim. FEHA separately requires reasonable accommodation and a good faith interactive process, and failure to engage in that process is its own violation.

Filing a workers’ compensation claim

Labor Code §132a prohibits discharge or discrimination against an employee for filing or intending to file a claim. See our guide to filing a workplace injury claim.

Immigration status and off-duty conduct

California prohibits retaliation based on immigration status and threats to report status. Labor Code §§96(k) and 98.6 also protect lawful off-duty conduct away from the employer’s premises, and political activity is protected under Labor Code §§1101 and 1102.

The Practical Question: How Do You Prove It?

Employers do not announce unlawful motives. What they do is give a reason — and the case usually becomes about whether that reason holds up.

The evidence that matters:

• Timing. How close was the termination to your complaint, your leave request, or your diagnosis?
• Shifting reasons. One explanation at termination, another to the EDD, a third in litigation.
• Comparators. People outside your protected class, or who did not complain, treated better for the same conduct.
• An abrupt change in your record. Years of strong reviews, then a sudden first write-up.
• Deviation from the employer’s own policy, such as skipped progressive discipline.
• Remarks by decision-makers about age, pregnancy, accent, disability, or “fit.”

Two things to do immediately: request your personnel file in writing under Labor Code §1198.5 (production generally required within 30 days), and get the stated reason for termination in writing before it evolves. Our guide to building a wrongful termination case covers this in more detail.

Frequently Asked Questions

I signed an at-will agreement. Does that end the discussion?

No. An at-will agreement cannot waive your statutory protections. No document you sign permits an employer to fire you for a discriminatory or retaliatory reason.

Can I be fired for no reason at all?

Generally yes — that is what at-will means. But an employer’s refusal to give any reason is not necessarily helpful to them. When the real reason later emerges as an unlawful one, the earlier silence or a shifting explanation becomes evidence of pretext.

My employer says it was a layoff. Does that matter?

Only if it was genuinely a layoff. Reductions in force are lawful, but they are also the most common cover for a targeted termination. Whether anyone else was let go, whether your duties survived under a different title, and whether the role was quietly re-posted are all discoverable.

I was a contractor, not an employee. Am I protected?

Possibly. California applies the ABC test under Labor Code §2775 to most classification questions, and misclassification is widespread. If the company controlled how you did your work and you performed services central to its business, you may have been an employee regardless of what your agreement said.

How long do I have?

It depends on the claim. FEHA claims generally require an administrative complaint with the California Civil Rights Department within three years, followed by suit within one year of the right-to-sue notice. Labor Code §1102.5 claims generally carry three years; Tameny claims, two. The administrative step is the one people miss.

Talk to an Employment Attorney

“At-will” is where an employer’s explanation usually starts. It is rarely where the analysis ends. If you were fired and the stated reason does not match what you believe actually happened, contact Cohen, Cohen & Cohen for a free consultation. We represent employees throughout Los Angeles and Ventura counties.

This article is general information about California law, not legal advice, and does not create an attorney-client relationship. Consult an attorney about your specific situation.