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Wrongful Termination

California Law About Wrongful Termination of Employment

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Damages – Wrongful Termination

Understanding Damages in Wrongful Termination

Damages – Wrongful Termination

Understanding Damages in Wrongful Termination

  1. Definition: Damages in wrongful termination cases refer to the compensation awarded to an employee who was illegally dismissed. These can include economic losses, emotional distress, and punitive damages.
  2. Types of Damages:
    • Economic Damages: Lost wages and benefits, both past (from termination to trial) and future (potential future earnings).
    • Non-Economic Damages: Compensation for emotional distress, pain, and suffering caused by the wrongful termination.
    • Punitive Damages: In cases of particularly egregious conduct by the employer, punitive damages may be awarded to punish and deter future misconduct.

Legal Framework in California

  1. Wrongful Termination: In California, this can occur if termination violates an implied contract, anti-discrimination laws, or public policy.
  2. Calculating Damages: The process involves assessing the financial impact of the termination and the emotional toll on the employee.
  3. Mitigation of Damages: The law requires wrongfully terminated employees to make reasonable efforts to mitigate their losses, such as seeking comparable employment.

Potential Legal Issues and Problems

  1. Proving Economic Damages: Determining the exact amount of lost wages and benefits can be complex, especially for future earnings, which might involve projections and expert testimony.
  2. Quantifying Non-Economic Damages: Assessing emotional distress is subjective, making it challenging to assign a monetary value.
  3. Eligibility for Punitive Damages: These are only awarded in cases of malicious or reckless conduct by the employer, which can be difficult to prove.
  4. Mitigation of Damages Disputes: Employers may argue that the employee failed to mitigate damages, potentially reducing the compensation amount.

Examples and Reasoning

  1. Case of Discriminatory Termination: An employee is wrongfully terminated based on racial discrimination. Economic damages would include lost wages and benefits. Non-economic damages would cover emotional distress due to discrimination. If the employer’s conduct was particularly malicious, punitive damages might also be appropriate.
  2. Breach of Implied Contract Case: An employee is fired in violation of an implied promise of continued employment. Economic damages would be calculated based on the implied contract’s duration and terms. Non-economic damages may be awarded for the mental anguish caused by the unexpected job loss.
  3. Failure to Mitigate: An employee who makes no effort to find a new job after wrongful termination may have their damages reduced. The employer must prove that suitable job opportunities were available and that the employee did not pursue them.
  4. Limitation on Damages: In cases where the employer can prove that termination was partially justified (e.g., performance issues), the damages awarded might be reduced accordingly.

Conclusion

In wrongful termination cases within California’s legal framework, calculating damages involves a thorough examination of economic and non-economic impacts on the employee. The complexity of these calculations and the requirement for mitigation can lead to various legal challenges. Employers must be cautious in their termination practices to avoid costly damages, while employees should be aware of their rights and responsibilities in seeking compensation for wrongful termination.

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Additional Information

Wrongful termination in the context of employment law in the state of California is a complex area of legal concern. It involves situations where an employer unlawfully terminates an employee, and the damages that may result from such wrongful termination. In California, employment law is governed by a combination of state and federal laws, with some unique state-specific provisions. Below, I’ll provide an extensive overview of the law and legal consequences of damages in this context, while also identifying potential problems and providing examples to illustrate key points.

1. At-Will Employment in California:

California is an “at-will” employment state, which means that employers can generally terminate employees for any reason, with or without cause, as long as the reason is not unlawful. Conversely, employees can also resign without notice for any reason. However, there are important exceptions and limitations to this rule.

2. Wrongful Termination Claims:

Wrongful termination occurs when an employer terminates an employee in violation of state or federal employment laws, public policy, or an employment contract. Common wrongful termination claims in California include:

a. Discrimination: Termination based on an employee’s race, gender, age, religion, disability, or other protected characteristic is prohibited under both state and federal laws (e.g., Title VII of the Civil Rights Act).

b. Retaliation: Employers cannot terminate employees for engaging in legally protected activities such as reporting workplace harassment, discrimination, or unsafe conditions.

c. Breach of Contract: If there is an employment contract that specifies the terms of employment, termination must adhere to those terms. This includes contracts that specify “for cause” termination.

d. Violation of Public Policy: Termination for reasons that contravene established public policy, such as firing an employee for reporting illegal activity within the company, may be deemed wrongful.

3. Legal Consequences of Wrongful Termination:

If an employee successfully proves wrongful termination, the legal consequences may include:

a. Compensatory Damages: These damages aim to compensate the employee for losses suffered as a result of the wrongful termination, including lost wages and benefits.

b. Punitive Damages: In cases of extreme misconduct, punitive damages may be awarded to punish the employer and deter similar behavior in the future.

c. Reinstatement: The court may order the employer to reinstate the terminated employee to their former position.

d. Attorney’s Fees and Costs: In some cases, the prevailing employee may recover attorney’s fees and litigation costs.

4. Problems that Could Arise:

Several problems and challenges can arise in wrongful termination cases in California:

a. Burden of Proof: Employees must prove that their termination was unlawful, which can be challenging. Employers may present counterarguments or justifications for their actions.

b. Statute of Limitations: Wrongful termination claims must be filed within specified time limits. If employees wait too long, they may lose their right to pursue a claim.

c. Lack of Documentation: Insufficient evidence or documentation can weaken an employee’s case. Employers often maintain thorough records, making it crucial for employees to do the same.

d. Contractual Limitations: Employment contracts may contain clauses that limit the remedies available to employees in case of termination, making it important to carefully review any such contracts.

5. Examples:

To illustrate these concepts, consider the following examples:

a. Discrimination: An employer fires an older employee due to their age, despite their excellent performance. This could be a case of age discrimination.

b. Retaliation: An employee reports sexual harassment by their supervisor and is subsequently terminated. This could be retaliation for whistleblowing.

c. Breach of Contract: An employment contract specifies that an employee can only be terminated for “cause.” If the employee is fired without a valid reason, it may be a breach of contract.

d. Violation of Public Policy: An employee is fired for refusing to engage in fraudulent activities on behalf of the employer. This may be a violation of public policy.

Conclusion

In conclusion, wrongful termination in California involves complex legal principles, and the legal consequences for employers can be substantial if they are found to be in violation of employment laws. Employees should be aware of their rights and consult with legal counsel if they believe they have been wrongfully terminated. Employers should also seek legal guidance to ensure compliance with employment laws and avoid costly legal disputes.

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2406. Breach of Employment Contract—Unspecified Term—Damages

If you find that [name of defendant] [discharged/demoted] [name of plaintiff] in breach of an employment contract, then you must decide the amount of damages, if any, that [name of plaintiff] has proved [he/she/ nonbinary pronoun] is entitled to recover. To make that decision, you must:

  1. Decide the amount that [name of plaintiff] would have earned from [name of defendant] up to today, including any benefits and pay increases; [and]
  2. Add the present cash value of any future wages and benefits that [he/she/nonbinary pronoun] would have earned after today for the length of time the employment with [name of defendant] was reasonably certain to continue; [and]
  3. [Describe any other contract damages that were allegedly caused by defendant’s conduct.]

In determining the period that [name of plaintiff]’s employment was reasonably certain to have continued, you should consider, among other factors, the following:

  • [Name of plaintiff]’s age, work performance, and intent regarding continuing employment with [name of defendant];
    • [Name of defendant]’s prospects for continuing the operations involving [name of plaintiff]; and
    • Any other factor that bears on how long [name of plaintiff] would have continued to work.

New September 2003; Revised December 2011

Directions for Use

For an instruction on mitigation, see CACI No. 3963, Affırmative Defense—Employee’s Duty to Mitigate Damages. This instruction should be given when plaintiff claims loss of employment from a wrongful discharge or demotion or a breach of the covenant of good faith and fair dealing. For instructions on present cash value, see CACI No. 3904A, Present Cash Value, and CACI No. 3904B, Use of Present-Value Tables.

Sources and Authority

  • Damages for Breach of Contract. Civil Code section 3300.
  • “The general rule is that the measure of recovery by a wrongfully discharged

CACI No. 2406                   WRONGFUL TERMINATION

employee is the amount of salary agreed upon for the period of service, less the amount which the employer affirmatively proves the employee has earned or with reasonable effort might have earned from other employment. However, before projected earnings from other employment opportunities not sought or accepted by the discharged employee can be applied in mitigation, the employer must show that the other employment was comparable, or substantially similar, to that of which the employee has been deprived; the employee’s rejection of or failure to seek other available employment of a different or inferior kind may not be resorted to in order to mitigate damages.” (Parker v. Twentieth Century-Fox Film Corp. (1970) 3 Cal.3d 176, 181–182 [89 Cal.Rptr. 737, 474 P.2d 689],

internal citations omitted.)

  • “[I]t is our view that in an action for wrongful discharge, and pursuant to the present day concept of employer-employee relations, the term ‘wages’ should be deemed to include not only the periodic monetary earnings of the employee but also the other benefits to which he is entitled as a part of his compensation.” (Wise v. Southern Pac. Co. (1970) 1 Cal.3d 600, 607 [83 Cal.Rptr. 202, 463 P.2d

426].)

  • In determining the period that plaintiff’s employment was reasonably certain to have continued, the trial court took into consideration plaintiff’s “ ‘physical condition, his age, his propensity for hard work, his expertise in managing defendants’ offices, the profit history of his operation, [and] the foreseeability of the continued future demand for tax return service to small taxpayers………………………….. ’ ”

(Drzewiecki v. H & R Block, Inc. (1972) 24 Cal.App.3d 695, 705 [101 Cal.Rptr.

169].)

  • In cases for wrongful demotion, the measure of damages is “the difference in compensation before and after the demotion.” (Scott v. Pac. Gas & Elec. Co. (1995) 11 Cal.4th 454, 468 [46 Cal.Rptr.2d 427, 904 P.2d 834].)

Secondary Sources

3 Witkin, Summary of California Law (11th ed. 2017) Agency and Employment,

§§ 284, 285, 286

Chin et al., California Practice Guide: Employment Litigation, Ch. 17-B, Contract Damages, ¶¶ 17:81, 17:95, 17:105 (The Rutter Group)

4 Wilcox, California Employment Law, Ch. 60, Liability for Wrongful Termination and Discipline, § 60.08[3] (Matthew Bender)

21 California Forms of Pleading and Practice, Ch. 249, Employment Law: Termination and Discipline, §§ 249.01, 249.17, 249.50 (Matthew Bender)

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