Illegal Reasons for Job Termination in California: Your Rights Under State and Federal Law

Losing your job can feel overwhelming, especially when the termination seems unfair or suspicious. While California is an at-will employment state, meaning employers can terminate employees at any time for almost any reason, there are critical legal protections in place. Employers cannot fire workers for illegal reasons, including discrimination, retaliation, whistleblowing, or exercising protected rights.

If you believe you were wrongfully terminated in Los Angeles or anywhere in Southern California, you may have legal options. Understanding what constitutes illegal termination is the first step toward protecting your rights and securing compensation.

At Arshakyan Law Firm, we advocate for employees who have been unlawfully terminated and help them pursue justice.

Understanding At-Will Employment in California

California Labor Code §2922 establishes at-will employment, allowing employers to terminate workers without notice or cause. However, this does not permit employers to fire employees for unlawful reasons.

Termination becomes illegal when it involves:

• Workplace discrimination
• Retaliation for protected activities
• Whistleblower punishment
• Violations of public policy
• Breach of employment contracts
• Denial of protected leave
• Failure to accommodate disabilities

These exceptions form the foundation of wrongful termination claims in California.

1. Discrimination: A Major Illegal Reason for Termination

Under the California Fair Employment and Housing Act (FEHA), employers cannot terminate employees based on protected characteristics.

Protected Categories Include:

• Race or ethnicity
• National origin or ancestry
• Religion
• Gender, gender identity, or sexual orientation
• Pregnancy or childbirth
• Disability or medical condition
• Age (40 and older)
• Marital status

Example: Age Discrimination in Los Angeles

A 58-year-old manager with strong performance reviews is replaced by a younger employee. Internal communications reveal comments about wanting a “younger, more energetic team.” This scenario may support an age discrimination claim.

Example: Pregnancy Discrimination

A pregnant employee requests modified duties due to medical restrictions. Instead of accommodating her, the employer terminates her position. This termination is unlawful under FEHA and federal law.

Case Study: Disability Discrimination

A Southern California employee diagnosed with multiple sclerosis requests flexible scheduling. Instead of engaging in the interactive process, the employer terminates her employment. This could constitute disability discrimination and failure to accommodate.

2. Retaliation for Reporting Workplace Violations

Retaliation occurs when an employer punishes an employee for engaging in legally protected activities.

Protected Activities Include:

• Reporting harassment or discrimination
• Filing wage and hour complaints
• Reporting unsafe working conditions
• Participating in investigations
• Requesting reasonable accommodations

Example: Sexual Harassment Complaint

An employee files a complaint against a supervisor for harassment. Weeks later, they are fired for “performance issues” despite a history of positive evaluations. This timing suggests unlawful retaliation.

Case Study: Wage Theft Complaint

A restaurant worker reports unpaid overtime to the California Labor Commissioner. Shortly afterward, the employer cuts their hours and terminates their employment. Retaliation for wage complaints violates California law.

3. Whistleblower Retaliation Under California Law

California Labor Code §1102.5 provides strong protections for whistleblowers. Employers cannot retaliate against employees who report illegal activity or refuse to participate in unlawful conduct.

Whistleblower Protections Apply When Employees:

• Report illegal practices to supervisors or agencies
• Refuse to engage in unlawful acts
• Participate in government investigations

Example: Healthcare Whistleblower

A nurse reports unsafe patient care practices that violate state regulations. After raising concerns, she was terminated for “not being a team player.” This may constitute whistleblower retaliation.

Case Study: Financial Fraud Reporting

An accounting employee reports fraudulent billing practices. After the report, the employer eliminates the employee’s position. If the termination was linked to the report, it may violate whistleblower protections.

4. Termination for Refusing to Engage in Illegal Conduct

Employers cannot require employees to break the law as a condition of employment.

Example:

A supervisor instructs an employee to falsify safety inspection reports. The employee refuses and is terminated. This termination violates public policy and California whistleblower laws.

5. Illegal Termination for Taking Protected Leave

Employees in California are protected under laws such as:

• California Family Rights Act (CFRA)
• Family and Medical Leave Act (FMLA)
• Pregnancy Disability Leave (PDL)

Employers cannot terminate employees for taking legally protected leave.

Example: CFRA Leave

An employee takes leave to care for a seriously ill parent. Upon return, they are told their position has been eliminated. If the elimination was pretextual, the termination may be unlawful.

Case Study: Pregnancy Disability Leave

A pregnant worker takes doctor-ordered leave and is replaced permanently. This may constitute pregnancy discrimination and wrongful termination.

6. Disability Discrimination and Failure to Provide Reasonable Accommodations

Employers must provide reasonable accommodations to employees with disabilities unless doing so causes undue hardship.

Examples of Illegal Conduct:

• Firing an employee after a cancer diagnosis
• Refusing modified duties for an injured worker
• Terminating an employee for requesting mental health leave

Case Study: Failure to Accommodate

A Los Angeles office worker develops carpal tunnel syndrome and requests ergonomic equipment. The employer refuses and later terminates the employee for reduced productivity. This may constitute disability discrimination.

7. Immigration-Related Retaliation Is Illegal

California law prohibits employers from using immigration status to retaliate against workers.

Illegal Practices Include:

• Threatening to report employees to immigration authorities
• Requesting unnecessary work authorization documents
• Retaliating after labor complaints

Example:

An undocumented worker reports wage theft. The employer threatens deportation and terminates the worker. This is unlawful retaliation under California law.

8. Termination for Filing Workers’ Compensation Claims

Employees injured on the job have the right to file workers’ compensation claims without fear of retaliation.

Example:

A construction worker files a claim after a workplace injury. Shortly afterward, the employer terminates them for “attendance issues.” If linked to the claim, this termination may be unlawful.

9. Breach of Employment Contracts or Implied Promises

Even in at-will employment, contracts or policies may limit termination.

Examples:

• Written contracts requiring “good cause” for termination
• Employee handbooks outlining progressive discipline
• Verbal assurances of long-term employment

Case Study

An employee handbook promises termination only after progressive discipline. The employer fires the employee without following the policy. This may constitute a breach of an implied contract.

10. Termination in Violation of Public Policy

California law protects employees from termination for exercising legal rights or fulfilling civic duties.

Examples of Protected Activities:

• Serving on a jury
• Voting in elections
• Reporting workplace safety violations
• Refusing to commit fraud
• Taking time off for military service

Case Study: Jury Duty Retaliation

An employee is terminated after missing work to serve on a jury. This violates public policy and California law.

Signs Your Termination May Have Been Illegal

Employees often sense when something isn’t right. Warning signs include:

• Sudden termination after reporting misconduct
• Replacement by someone outside a protected class
• Inconsistent explanations for termination
• Negative treatment after requesting leave or accommodations
• Retaliatory timing

If any of these apply, you may have a wrongful termination claim.

How to Prove Wrongful Termination in California

To succeed in a wrongful termination claim, employees must demonstrate:

1. They engaged in a protected activity or belonged to a protected class
2. They suffered an adverse employment action (termination)
3. A causal link exists between the two

Evidence That Strengthens a Case:

• Emails or written communications
• Performance reviews
• Witness statements
• Company policies
• Timeline of events

Documentation is critical in proving employer misconduct.

Compensation Available in Wrongful Termination Cases

Employees who prevail in wrongful termination claims may recover:

• Lost wages and benefits
• Future lost earnings
• Emotional distress damages
• Punitive damages
• Attorney’s fees and costs
• Reinstatement

These remedies aim to make the employee whole and deter unlawful employer behavior.

Why You Need a California Employment Attorney

Wrongful termination claims can be complex, especially when employers attempt to justify their actions with pretextual reasons.

An experienced employment attorney can:

• Evaluate your claim
• Gather and preserve evidence
• Negotiate settlements
• Represent you in court

At Arshakyan Law Firm, we fight for employees across Los Angeles, Orange County, Ventura County, and Southern California.

How Arshakyan Law Firm Can Help

If you were terminated for an illegal reason, our legal team can help you:

• Understand your rights under California law
• Determine whether your termination was unlawful
• Pursue compensation for your losses
• Hold employers accountable