Public Policy Violations in California Wrongful Termination

California is an at-will employment state. This means your employer can fire you at any time, for any reason, or no reason at all. But there’s a critical exception: your employer cannot fire you for reasons that violate fundamental public policy.

If you were fired for refusing to break the law, reporting illegal activity, or exercising your legal rights, you may have been wrongfully terminated under California’s public policy exception. This protection exists to ensure that workers can do the right thing without fear of losing their jobs.

What Is the Public Policy Exception?

The public policy exception to at-will employment protects employees from termination when their firing would harm society’s interests. California courts established this protection in the landmark case Tameny v. Atlantic Richfield Co. (1980).

In Tameny, the California Supreme Court ruled that an employer cannot fire an employee for refusing to engage in price-fixing, which would violate antitrust laws. The court recognized that allowing such terminations would encourage illegal conduct and undermine public welfare.

Since Tameny, California courts have consistently protected employees who are fired for reasons that conflict with public policy rooted in state or federal statutes, constitutional provisions, or administrative regulations.

This is not about fairness or ethics alone. The public policy exception applies only when your termination violates a clearly established principle that benefits society as a whole.

Four Categories of Public Policy Violations

California law recognizes four main categories of wrongful termination based on public policy violations:

1. Refusing to Violate the Law

Your employer cannot fire you for refusing to commit an illegal act. If your boss asks you to break the law and you refuse, firing you for that refusal violates public policy.

Examples:

• Refusing to falsify business records or financial statements
• Refusing to submit false insurance claims
• Refusing to destroy documents subject to a legal hold
• Refusing to participate in fraudulent billing practices
• Refusing to discriminate against protected classes
• Refusing to violate environmental regulations
• Refusing to tamper with evidence

2. Performing a Statutory Obligation

You cannot be fired for fulfilling legal duties required by law. California protects employees who perform civic responsibilities and statutory obligations.

Examples:

• Serving on a jury when summoned (California Labor Code Section 230)
• Voting in elections or participating in the electoral process
• Serving in the military or National Guard (California Military and Veterans Code Section 394)
• Complying with a court order or subpoena
• Testifying truthfully in a legal proceeding

3. Exercising a Statutory Right

Your employer cannot terminate you for exercising rights granted by law. California law gives employees specific protections when they use their legal rights.

Examples:

• Filing a workers’ compensation claim (California Labor Code Section 132a)
• Filing a wage and hour complaint with the Labor Commissioner
• Taking protected family or medical leave under FMLA or CFRA
• Requesting reasonable accommodations for a disability
• Reporting workplace safety violations to Cal/OSHA
• Taking time off for required rest or meal breaks
• Requesting personnel file records (California Labor Code Section 1198.5)

4. Reporting Illegal Conduct (Whistleblowing)

You are protected when you report illegal activity, fraud, health and safety violations, or other misconduct that harms the public interest.

Examples:

• Reporting financial fraud or embezzlement to authorities
• Reporting patient abuse in healthcare settings
• Reporting environmental violations to regulatory agencies
• Reporting safety violations that endanger workers or the public
• Reporting tax fraud or evasion
• Reporting violations of consumer protection laws
• Reporting Medicare or Medicaid fraud

What Constitutes “Fundamental Public Policy” in California?

Not every workplace dispute involves public policy. California courts require that the public policy at issue must be:

Clearly established: The policy must be explicitly stated in a constitutional provision, statute, or administrative regulation. General notions of fairness or morality are not enough.

Fundamental: The policy must serve an important societal interest, not just private concerns.

Substantial: The policy violation must be clear and significant, not technical or trivial.

Linked to your termination: You must show a connection between your protected conduct and your firing.

For example, if you’re fired for reporting that your employer is dumping toxic waste illegally, that violates the fundamental public policy of environmental protection established by state and federal environmental laws.

But if you’re fired because your boss doesn’t like your personality, that doesn’t violate public policy, even if it feels unfair. The key is whether your termination undermines an established legal principle that benefits society.

Real-World Examples of Public Policy Violations

Understanding how public policy violations play out in real situations can help you recognize if your termination was wrongful.

Healthcare Worker Fired for Reporting Patient Neglect

A nurse at a long-term care facility notices that patients are not receiving required medications and care. She reports the violations to management and the state licensing board. Two weeks later, she’s fired for “performance issues.” This is wrongful termination under public policy because California law requires healthcare workers to report patient abuse and neglect.

Accountant Fired for Refusing to Falsify Records

An accountant is instructed by his employer to alter financial statements to hide losses from investors. He refuses and is terminated. This violates public policy because the employer fired him for refusing to commit securities fraud, which violates federal and state laws.

Retail Worker Fired After Jury Service

An employee receives a jury summons and notifies her employer. She serves on a jury for five days. When she returns to work, she’s told her position has been eliminated. California Labor Code Section 230 explicitly prohibits firing employees for serving on a jury. This is a clear public policy violation.

Construction Worker Fired After Filing Workers’ Comp

A construction worker injures his back on the job and files a workers’ compensation claim. His employer terminates him shortly after, claiming the position is no longer needed. California Labor Code Section 132a makes it illegal to fire someone for filing a workers’ comp claim. This is wrongful termination under public policy.

Bank Employee Fired for Reporting Money Laundering

A bank teller notices suspicious transactions that appear to violate anti-money laundering laws. She reports the activity to the bank’s compliance department and federal regulators. The bank fires her for “creating disruption.” This violates public policy because federal and state laws require financial institutions to report suspicious activity, and employees who report such violations are protected.

Teacher Fired for Reporting Standardized Test Cheating

A teacher discovers that administrators are altering student answers on standardized tests to improve school ratings. She reports this to the school district and state education department. She’s fired for “insubordination.” This violates public policy because California law prohibits test fraud and protects whistleblowers who report educational misconduct.

Public Policy vs. Retaliation: Understanding the Overlap

Public policy wrongful termination often overlaps with workplace retaliation claims. Both protect employees from adverse employment actions, but they have different legal foundations.

Public policy claims are based on common law (court decisions) and protect broad societal interests. They apply when your termination violates fundamental principles established by statutes, constitutional provisions, or regulations.

Retaliation claims are based on specific statutes that prohibit employers from punishing employees for protected activities, such as filing discrimination complaints or reporting wage violations.

In many cases, the same termination can support both a public policy claim and a retaliation claim. For example, if you’re fired for filing a workers’ compensation claim, you could pursue:

• A wrongful termination claim under public policy
• A retaliation claim under California Labor Code Section 132a

Having overlapping claims can strengthen your case and provide multiple pathways to recovery.

For more information on retaliation protections, see California Workplace Retaliation.

What You Must Prove in a Public Policy Case

To succeed in a wrongful termination claim based on public policy violation, you must prove:

Protected conduct: You engaged in conduct protected by public policy (refusing to break the law, exercising a legal right, reporting violations, or fulfilling a legal duty).

Employer knowledge: Your employer knew about your protected conduct.

Adverse action: You were fired or suffered another significant adverse employment action.

Causal connection: Your protected conduct was a substantial motivating factor in your termination.

Clear public policy: The public policy at issue is clearly established in law and is fundamental to California’s interests.

You don’t need to prove that public policy was the only reason for your termination, but it must be a substantial motivating factor.

Damages Available for Public Policy Violations

If you prove wrongful termination in violation of public policy, you may be entitled to several types of damages:

Back pay: Lost wages from the date of termination until judgment, including benefits you would have received.

Front pay: Future lost earnings if you cannot be reinstated to your position.

Emotional distress damages: Compensation for mental anguish, humiliation, and suffering caused by the wrongful termination.

Punitive damages: Additional damages designed to punish the employer and deter future misconduct, available when the employer acted with malice, oppression, or fraud.

Attorney’s fees: In some cases, you may recover your legal costs, especially if your claim also involves statutory retaliation.

California courts have awarded substantial damages in public policy cases because these violations strike at the heart of important societal interests.

Statute of Limitations: Time Limits to File

Wrongful termination claims based on public policy violations are typically subject to a two-year statute of limitations in California. This means you must file your lawsuit within two years from the date of your termination.

However, some related claims may have different deadlines:

• Workers’ compensation retaliation claims: One year
• Discrimination or harassment claims filed with the Civil Rights Department (CRD): Three years
• Wage and hour retaliation claims: Varies depending on the specific violation

Missing these deadlines can permanently bar your claims, so it’s critical to act quickly. Consulting with an employment attorney soon after your termination helps ensure you don’t lose your rights.

How to Prove Your Public Policy Wrongful Termination Claim

Building a strong case requires evidence that connects your protected conduct to your termination. Here’s what helps:

Documentation: Keep copies of emails, text messages, performance reviews, and any written communications related to your protected conduct and termination.

Timeline: Create a detailed timeline showing when you engaged in protected conduct and when you were fired. Proximity in time can suggest causation.

Witnesses: Identify coworkers or others who can testify about what happened, including anyone who heard statements about why you were fired.

Company policies: Obtain copies of employee handbooks, policies, and procedures that may be relevant to your case.

Comparative evidence: If possible, show that other employees who did not engage in protected conduct were treated more favorably.

Pretextual reasons: If your employer gave shifting or inconsistent reasons for your termination, document these contradictions. Pretext can show that the real reason was your protected conduct.

An employment attorney can help you gather and organize evidence to build the strongest possible case.

What to Do If You Were Fired for a Public Policy Reason

If you believe you were wrongfully terminated for violating public policy, take these steps:

Document everything: Write down what happened, including dates, times, people involved, and what was said. Save all relevant documents and communications.

Report internally if safe: If you haven’t already, consider reporting the violation through your employer’s internal reporting mechanisms, but only if it won’t put you at further risk.

File necessary agency complaints: Depending on your situation, you may need to file complaints with government agencies like the Labor Commissioner, Civil Rights Department, or OSHA.

Preserve evidence: Don’t delete emails, texts, or other communications. Make copies of everything while you still have access.

Consult an employment attorney: Wrongful termination cases can be complex. An experienced attorney can evaluate your claims, explain your options, and help you navigate the legal process.

Don’t wait: With a two-year statute of limitations, time is critical. The sooner you act, the stronger your case will be.

Frequently Asked Questions

Can I be fired for reporting illegal activity to authorities outside my company?

Yes, you’re protected when you report illegal conduct to external agencies, law enforcement, or regulatory bodies. California’s public policy protections extend to external whistleblowing, not just internal complaints.

What if I was wrong about the illegal activity I reported?

You’re generally protected as long as you had a reasonable, good-faith belief that illegal activity was occurring. You don’t need to prove that a violation actually happened, only that you reasonably believed it did.

Can my employer claim they fired me for poor performance instead?

Employers often provide pretextual reasons for termination to hide unlawful motivations. If you can show that the stated reason is false or inconsistent with your actual performance, and that your protected conduct was the real reason, you can still prevail.

How long do I have to file a wrongful termination lawsuit in California?

Public policy wrongful termination claims typically have a two-year statute of limitations from the date of termination. However, related statutory claims may have different deadlines, so consult with an attorney promptly.

Can I sue if I was fired for refusing to work in unsafe conditions?

Yes. California Labor Code Section 6310 prohibits employers from firing workers who refuse to perform work where safety violations create a real and apparent hazard. This overlaps with the public policy exception protecting workers who report safety violations.

Related Topics

• California Wrongful Termination: Overview of all wrongful termination protections
• California Workplace Retaliation: Statutory retaliation protections
• whistleblower protections: Detailed guide to reporting illegal conduct
• California – Workers Compensation Retaliation: Protections for injured workers
• California – Discrimination and Harassment: Protected class protections
• California – At-Will Employment Exceptions: Overview of limits on at-will employment

Take Action: Protect Your Rights

California’s public policy protections exist because doing the right thing shouldn’t cost you your job. If you refused to break the law, reported illegal activity, exercised your legal rights, or fulfilled a legal duty and were fired as a result, you may have a strong wrongful termination claim.

Don’t let your employer get away with punishing you for acting lawfully and ethically. The law is on your side.

Next steps:

• Document your protected conduct and termination
• Consult with a California employment attorney to evaluate your claims
• File any required agency complaints within statutory deadlines
• Understand your rights to compensation and justice

You stood up for what was right. Now let California law stand up for you.

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Legal Disclaimer: This article provides general information about California wrongful termination law and is not legal advice. Employment law is fact-specific, and outcomes depend on the unique circumstances of each case. If you believe you were wrongfully terminated, consult with a qualified California employment attorney who can evaluate your specific situation and advise you on the best course of action. Nothing in this article creates an attorney-client relationship.