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Summary of differences between federal and state regulations
The general at-will employment doctrine is what employers generally refer to unless there are state laws that provide more detail. This is a situation in which there is a lack of laws or contracts that narrow the reasons for which employees may be terminated. Where such laws or contracts exist, they must be adhered to.
State courts have recognized the concept of “public policy” exception to the at will employment concept; that is, it is illegal for an employer to terminate an employee for refusing to break the law on behalf of the employer.
State courts have recognized the concept of an “implied contract” exception to the at will employment concept; that is, courts have found contractual obligations in an employer’s expressed oral or written assurances that employees would only be discharged for cause. Assurances may include oral promises or guidelines found in handbooks.
The courts also recognize an exception of “an implied covenant of good faith and fair dealing,” meaning that employers are not allowed to fire an employee who has worked for the company for many years, or who is due to receive anticipated financial benefits or a retirement. The courts have said that employers must conduct themselves fairly and in good faith.
State
Contact
California Division of Labor Standards Enforcement
Regulations
Labor Code §2920.
Every employment is terminated by any of the following:
(a) Expiration of its appointed term.
(b) Extinction of its subject.
(c) Death of the employee.
(d) The employee's legal incapacity to act as such.
Labor Code §2921.
Every employment in which the power of the employee is not coupled with an interest in its subject is terminated by notice to the employee of either of the following:
(a) The death of the employer.
(b) The legal incapacity of the employer to contract.
Labor Code §2922.
An employment, having no specified term, may be terminated at the will of either party on notice to the other. Employment for a specified term means an employment for a period greater than one month.
Labor Code §2923.
An employee, unless the term of his service has expired or unless he has a right to discontinue it at any time without notice, shall continue his service after notice of the death or incapacity of his employer, so far as is necessary to protect from serious injury the interests of the employer's successor in interest, until a reasonable time after notice of the facts has been communicated to such successor. The successor shall compensate the employee for such service according to the terms of the contract of employment.
Labor Code §2924.
An employment for a specified term may be terminated at any time by the employer in case of any willful breach of duty by the employee in the course of his employment, or in case of his habitual neglect of his duty or continued incapacity to perform it.
Labor Code §2925.
An employment for a specified term may be terminated by the employee at any time in case of any wilful or permanent breach of the obligations of his employer to him as an employee.
Labor Code §2926.
An employee who is not employed for a specified term and who is dismissed by his employer is entitled to compensation for services rendered up to the time of such dismissal.
Labor Code §2929.
No employer may discharge any employee by reason of the fact that the garnishment of his wages has been threatened. No employer may discharge any employee by reason of the fact that his wages have been subjected to garnishment for the payment of one judgment.
Federal
Contacts
None.
Regulations
None.