In California, most employment relationships are considered “at-will,” meaning either an employer or an employee may terminate their relationship at any time, with or without cause, and with or without notice. However, there are important exceptions to this general rule, and employers should be aware of when a termination notice is required to avoid legal complications.
Under California law, there is no statutory requirement that employers provide advance notice of termination to at-will employees. An employer can generally terminate an at-will employee immediately and does not need to provide a reason. However, this flexibility does not extend to situations involving contract employees, mass layoffs or violations of public policy.
Exceptions in action
Employees who are hired under a written employment contract or collective bargaining agreement may be entitled to termination notice if their contract specifies such a requirement. Failing to follow the terms of an employment agreement could result in a breach of contract claim. Employers should carefully review all agreements before taking action to ensure they are complying with notice and termination provisions accordingly.
For large-scale terminations, employers must consider the federal Worker Adjustment and Retraining Notification (WARN) Act, as well as California’s state version of the law. The Cal-WARN Act applies to employers with 75 or more full-time and part-time employees and requires at least 60 days’ advance written notice before conducting a mass layoff, plant closure or relocation affecting 50 or more employees. Failure to comply with these rules can expose the employer to penalties, back pay and legal claims.
Employers must also be cautious not to terminate employees in a way that violates public policy or appears retaliatory. For example, an employee who has recently filed a complaint of workplace harassment, taken protected family or medical leave or reported unsafe working conditions is protected from retaliatory discharge. In such cases, even an at-will employee may have grounds for legal action if they are not given notice or are terminated under questionable circumstances.
While advance notice is not legally required in most situations, employers may still choose to provide notice as a matter of best practice. Offering notice or severance pay can reduce workplace disruption, preserve morale among remaining staff and reduce the risk of litigation. Ultimately, proactively understanding when termination notice is required can help to protect a business and foster responsible, lawful employment practices.