Posted On: October 27, 2008 by Greenberg & Rudman

HAVE YOU BEEN FIRED FROM YOUR JOB IN NORTHERN CALIFORNIA? YOU MAY HAVE AN EMPLOYMENT CLAIM

Northern California is feeling the impact of the economic recession. Many of California’s employers are laying off a large number of their employees. During this time, it is important for workers to understand California’s “at-will” work doctrine and its exceptions, so that they can learn how to protect themselves during this economic crisis. Yahoo and Ebay, two of Silicon Valley’s most prominent companies fired over 1,000 of its employees, equaling 10 percent of its workforce. Yahoo also announced an employee cut-back of 1,500 people. Silicon Valley employees are suffering through these debilitation effects of job loss. Some Silicon Valley employees may have a legitimate employment claim if they are laid off.

In order to determine whether an employee was legally fired, first workers must understand the type of employment relationship they have with their employer. The “at-will” employment doctrine was established in the 1984 case of Payne v. Western & Atlantic RR. This case established that employers do not need any reason to fire employees. This means that your employer may fire you for any reason, at any time. Even if the reason for the dismissal is morally wrong, it is still legal. Most likely this employment relationship will be “at-will,” meaning the employer may fire the employee for any reason, at any time. However, there are several important exceptions to the at-will doctrine. The most important exceptions are detailed below.

Exceptions to at-will employment: The exceptions to the “at-will” work doctrine can help employees understand if their layoff was illegal.

A WRITTEN EMPLOYMENT CONTRACT
If you were fired from your job it may have been illegal if you have a written employment contract. A valid legal contract has three elements: (1) an offer has been made by one person to another, (2) The offer was accepted, and (3) Something of value is exchanged on the basis of the agreement. Many unions have written employment contracts saying that members can only be fired “for good cause.” You may also be exempt from the “at-will” doctrine if you have a contract with your employer that sets beginning and ending dates of your employment.

AN IMPLIED CONTRACT
Your firing may also be illegal if you had an “implied contract” with your employer. This, however, is often difficult to prove. An “implied contract” means that words and valuable things have been exchanged between employer and employee so that a legal contract controls the relationship. If you assert this defense in court, the court will look at several factors to determine if you have an enforceable “implied contract.” The court will likely examine: (1) the duration of your employment, (2) if you have received regular promotions, (3) if you have continually received positive employment reviews, (4) if you were assured that you would have continual employment, (5) if your employer failed to give a required warning for your firing, (6) if your employer gave your promises of a permanent position when you were hired. Some courts have found that employee handbooks, or manuals, making such promises of permanence created “implied contracts.”

BREACH OF GOOD FAITH AND FAIR DEALING
You may also argue that your employer breached their duty of “good faith” and “fair dealing.” Trying to prove a breach of “good faith and fair dealing” is often easier than trying to prove a breach of contract or implied contract. Some examples of potential violations of “good faith and fair dealing” are firing employees to prevent them from collecting sales commissions, misleading employees about chances for future promotions, or repeatedly transferring employee to remote or dangerous assignments to encourage them to quit. However, in California financial recovery is limited to financial gains that employees would have gotten had their employment contract been fulfilled.

If you believe that you were wrongfully fired, the California law offices of Greenberg & Rudman LLP are here to help. We have over 50 years of experience representing clients and have gotten over $150 million in compensation. California employment law is complicated- you need an experienced employment attorney to help you navigate California and federal laws. Call us now at 1-800-252-9776 for a free and confidential consultation. You can also check out our website at www.discriminationattorney.com to learn more about our services and the law.