At-will employment does not give employers unlimited power. Los Angeles employees are protected by a wide range of exceptions that prevent termination.

If you’ve been unlawfully terminated, our Los Angeles wrongful termination lawyer can help you understand your rights and pursue the compensation you deserve. Contact us today to schedule a free consultation.

What At-Will Employment Really Means in Los Angeles

At-will employment allows either the employer or the employee to end the working relationship at any time, with or without notice. Termination can be based on personality conflicts, restructuring, financial decisions, or no stated reason at all. However, employers cannot fire someone for a reason that violates a specific legal protection. Once an employer crosses that line, the termination is no longer at-will—it becomes wrongful termination.

Exception 1: Discrimination-Based Termination

One of the most important exceptions involves discrimination. Under the California Fair Employment and Housing Act (FEHA) and federal laws, employers cannot fire employees based on protected characteristics, including:

Race or ethnicity
Gender or gender identity
Age (40 and older)
Disability or medical condition
Sexual orientation
National origin
Religion
Marital or pregnancy status

If an employee is terminated and a protected characteristic played any role in the decision, the termination is unlawful. Even subtle or indirect actions can qualify as discrimination.

Exception 2: Retaliation for Protected Activity

Retaliation occurs when an employer fires someone for exercising a legal right. This is one of the most common exceptions to at-will employment. Protected activities include:

Reporting harassment, discrimination, or unsafe conditions.
Filing a wage claim with the Labor Commissioner.
Requesting medical or family leave under CFRA or FMLA.
Participating in a workplace investigation.
Refusing to engage in illegal activity.
Whistleblowing under California Labor Code.

If termination occurs shortly after an employee engages in any protected activity, this timing can reveal a retaliatory motive.

Exception 3: Violation of Public Policy

California recognizes claims for termination that violate fundamental public policy. This comes into play when the firing relates to a legal duty or societal interest. Examples include:

Firing an employee for serving on a jury.
Terminating someone for reporting illegal conduct.
Punishing an employee for taking time off to vote.
Firing a worker for filing a workers’ compensation claim.

If a termination undermines a public policy that benefits society, the employer may be liable.

Exception 4: Implied Contract or Promises

Even without a written contract, employees may be protected if their employer created an implied contract. This can occur when:

Company policies promise job security.
Long-term employment and positive reviews create expectations.
Supervisors make verbal assurances such as “your job is safe.”
The employer follows progressive discipline and deviates from it during termination.

Implied contracts can override the at-will presumption and prevent termination without good cause.

Exception 5: Covenant of Good Faith and Fair Dealing

California recognizes that employers cannot act in bad faith when terminating employees. This exception applies when employers fire workers:

To avoid paying earned commissions or bonuses.
Right before vesting dates.
To circumvent benefit obligations.

Although limited, this exception prevents employers from terminating employees for deceitful or opportunistic reasons.

Exception 6: Protected Leaves of Absence

Employees taking legally protected leave cannot be terminated for using that leave. Laws that grant protected leave include:

California Family Rights Act (CFRA)
Family and Medical Leave Act (FMLA)
Pregnancy Disability Leave (PDL)
Workers’ compensation medical leave
Military leave under federal law

If an employer fires an employee for taking time off allowed by law, the termination is unlawful.

Are There Exceptions to At-Will Employment in Los Angeles?