Determining Fault in Employment Cases in California

Understanding how fault is determined in California employment cases is essential for employees seeking justice and employers aiming to avoid costly legal disputes.

California employment law provides extensive protections for workers while also outlining employer responsibilities. When disputes arise, determining fault is crucial in resolving wrongful termination, discrimination, or workplace misconduct claims. Understanding how fault is assessed under California law helps employees and employers navigate legal challenges effectively.

At-Will Employment and Its Exceptions

California follows an at-will employment standard, meaning employers can terminate employees for any reason—except for those prohibited by law. However, several exceptions limit this doctrine, including:

• Public Policy Violations – Employers cannot fire an employee for refusing to engage in illegal activities, reporting violations, or exercising legal rights.
• Implied Contracts – If an employer’s handbook, verbal assurances, or conduct suggest job security, a termination may be unlawful.
• Retaliation – Employees who file complaints about workplace safety, discrimination, or wage issues are protected from termination under California’s Fair Employment and Housing Act (FEHA).

Just Cause Standard for Termination

Although at-will employment is the default, certain workers—such as those with employment contracts—are protected by a just cause standard. This means an employer must have a legitimate, documented reason for termination, such as:

• Poor performance
• Misconduct
• Violation of company policies

Employers failing to provide sufficient evidence for termination may face wrongful termination claims.

Constructive Dismissal: When Employees Are Forced to Resign

If an employer creates intolerable working conditions, an employee may resign and claim constructive dismissal. Under California law, courts consider factors such as:

• Significant pay cuts
• Harassment or discrimination
• Retaliation for whistleblowing
• Unsafe working conditions

A resignation may be treated as an unlawful termination if the work environment was intentionally made unbearable.

Employee vs. Independent Contractor: Misclassification Issues

Worker classification is another area where fault plays a critical role. California uses the ABC Test, established in Dynamex Operations West, Inc. v. Superior Court, to determine whether a worker is an employee or an independent contractor. Under this test, a worker is presumed to be an employee unless:

1. The worker is free from the company’s control.
2. The work performed is outside the company’s usual business.
3. The worker is engaged in an independent trade or business.

Misclassifying workers as independent contractors when they should be employees can result in liability for unpaid wages, benefits, and penalties.

Proving Discrimination and Employer Liability

In employment discrimination cases, fault is determined using a burden-shifting framework outlined in McDonnell Douglas Corp. v. Green. The steps include:

1. Employee Establishes a Prima Facie Case – The worker must show they belong to a protected class and suffered an adverse employment action.
2. Employer Provides a Legitimate Reason – The employer must offer a lawful justification for the action taken.
3. Employee Proves Pretext – The employee must demonstrate that the employer’s reason is a cover for discrimination.

According to attorney Edgar Manukyan of Manukyan Law Firm:

“Employers often justify terminations with vague performance concerns, but the real challenge is proving whether bias played a role. Employees need to document everything—emails, performance reviews, and witness statements—to strengthen their claims.”

Employer’s Duty of Care in the Workplace

Beyond discrimination and termination claims, employers have a legal duty to provide a safe and fair workplace. A failure to meet this obligation can result in employer liability. Key areas include:

• Preventing harassment and discrimination under FEHA.
• Ensuring a safe work environment as required by Cal/OSHA regulations.
• Properly investigating complaints of workplace misconduct.

Legal Remedies for Employees

Employees who believe they were wrongfully terminated or subjected to illegal treatment have several legal options, including:

• Filing a complaint with the California Civil Rights Department (CRD)
• Pursuing a lawsuit for wrongful termination, discrimination, or wage violations
• Seeking reinstatement or monetary damages for lost wages and emotional distress

Understanding how fault is determined in California employment cases is essential for employees seeking justice and employers aiming to avoid costly legal disputes. For more insights on employment law and worker rights, visit Legal Reader.