Defending against a Wrongful Dismissal Lawsuit in California

When defending against a wrongful dismissal lawsuit in California, the key factors revolve around disproving the employee’s claim of an illegal termination

This is primarily done by establishing a legitimate, non-discriminatory reason for termination and demonstrating compliance with employment laws and company policies.

The at-will employment doctrine

California is an “at-will” employment state, which is the most fundamental defense for employers. This doctrine states that an employer can terminate an employee at any time, for any lawful reason, or for no reason at all.

• Rebutting the at-will presumption: While powerful, this is a rebuttable presumption. An employee can overcome it by showing an exception applies, such as discrimination, retaliation, or an implied contract.
• Defense strategy: The core defense is to show that the at-will doctrine applies because the reason for termination did not fall into one of the illegal exceptions.

Legitimate, non-discriminatory reason

The most common defense is to provide a legitimate, non-discriminatory reason for the employee’s termination. The employer must show they had a valid business reason for the decision, which could include:

• Poor performance: Documenting unsatisfactory work performance through performance reviews, written warnings, and other records is a critical defense.
• Misconduct or policy violations: Evidence of the employee’s misconduct, including violating company policies, can justify termination.
• Business necessity: The employer can argue the termination was a result of a legitimate business decision, such as downsizing, a reduction in force (RIF), or a company restructuring.

Consistent application of policies

To defeat a claim of pretext (that the legitimate reason is a cover for an illegal one), employers must show that company policies were applied consistently and fairly.

• Documentation is key: Meticulous records of disciplinary actions, performance reviews, and incidents leading up to termination are crucial.
• Procedures followed: The employer must demonstrate they followed their own established policies and procedures for handling employee performance and conduct issues.
• Consistency across employees: Evidence showing that other employees who engaged in similar conduct were treated similarly helps to defeat claims of unfairness.

Responding to specific legal claims

Wrongful dismissal claims often fall into specific legal categories, each with its own defense factors.

Discrimination and retaliation claims

• Defensive argument: An employer can defend against discrimination by presenting evidence that the termination was based on legitimate, non-discriminatory factors, not a protected characteristic like race, gender, age, or disability.
• Pretext counter-argument: The employer must show that the employee’s evidence of discrimination is insufficient and that the articulated business reason was not a pretext for illegal discrimination.
• Anti-retaliation policies: The employer’s defense is stronger if they can demonstrate a robust, enforced policy against retaliation, combined with documentation showing the termination was unrelated to any protected activity, such as whistleblowing or reporting harassment.

Breach of contract claims

• At-will defense: If the employment was truly at-will, the employer can argue no contract was breached.
• Countering implied contract: Employers can defeat implied contract claims by demonstrating there was no agreement, either written or implied, that restricted the employer’s right to terminate.
• “For cause” justification: If a contract requires “good cause,” the defense is to prove that the termination met the contractual definition of good cause, often backed by a history of poor performance.