The discussion below is based primarily upon general principles of California law. The laws in many of the other States are similar to the principles stated below.  The statements below are not intended to provide legal advice, but is intended to provide only a general description of general principals of law. If you believe you have an employment related legal problem, nothing can substitute for discussing your matter with a qualified attorney.

EXCEPTIONS: There are several exceptions to the general rule. Some of the exceptions to the at-will doctrine were created by case law and some have been codified by statute. They are summarized below. 

 

Express Contracts	Implied Contracts	Public Policy Exception
Discrimination	Misrepresentation	Sexual Harassment

 
• Contract
• EXPRESS CONTRACT: When there is a contract for a specified period of time, an employer may not terminate the employee absent a showing of just cause. The easy example of this is when there is a written employment contract(such as a collective bargaining agreement or a contract for an actor to make a movie). When an employer unjustly terminates an employee prior to the term of the contract, the employee would be entitled to contractual remedies and possibly injunctive relief. Furthermore, if the employee quits prior to the term of the contract without good cause, the employee could be liable for damages to the employer. Back to index
• IMPLIED CONTRACTS: Often referred to an "implied in fact" contract. In these cases, the courts have upheld an exception to the general rule allowing an action by an employee where she/he can demonstrate that an implied contract was created by the conduct of the parties that prohibits termination without just cause. The leading case is Pugh vs. See's Candies, Inc., 203 Cal. App. 3d 743, 250 Cal Rptr.195(1988).
• Factors that determine the existence of an implied contract is the length of employment(the longer, the more likely an implied contract) ; whether promotions were given or promised and the existence of an employee handbook stating reasons that would justify termination.
• Even if it is shown that there is an express or implied contract, an employer would still be justified if the termination was not wrongful. Examples might be stealing from the employer or just failing to perform the duties of employment. Back to index
• Public Policy Exception-The simple example here would be an employer who fires an employee for refusing to perform an unlawful act.
• The leading case in this area is Foley vs. Interactive Data Corp., 47 Cal. 3d 654, 765 P.2d 373. Not all actions by an employee are protected. It must be shown that the employee was terminated for performing an act that would benefit the public at large, as opposed to an act protecting simply an interest of the employer or even the employee. An example to illustrate would be the employee's termination due to reporting about his employer's illegal dumping of toxic waste. Some of these situations are often referred to as "whistle-blower" cases.
• Sex discrimination in the workplace can support a claim for tortuous discharge in violation of public policy. See Rojo vs. Kliger 52, Cal.3d 65, 276 Cal. Rptr. 130(1990)-Back to index
 

Discriminatory Discharge-An employee may not be discharged in violation or his rights under specific statutes which prevent discrimination on the basis of age, disability, race, religion, gender or national origin.
Note that not all "discrimination" is unlawful. An employer may fire an employee because the
employee drinks root beer instead of ginger ale, or because the employee prefers the Mets to the
Dodgers, or because the employee wears colored underwear, or because he simply doesn't like or
get along with the employee. As long as the discharge is not motivated by a discriminatory motive
premised on one of the *particular grounds* found in one of the applicable statutes, it will not be  unlawful -even though it may be "discriminatory.'  The burden of showing that a particular discharge is discriminatory falls solely on the discharged employee.Back to index

Sexual Harassment-It is against the law to terminate someone for refusing to succumb to unwanted sexual advances.  There are two types of sexual harassment.  One is very direct such as unwanted advances, improper touching or speech, displaying sexual photographs...  The other is more subtle.  This is sometime referred to as "creating a hostile work environment" by either expressly or implicitly conditioning the continuation of employment on sexual relations, or having to tolerate inappropriate conduct. The U.S. Supreme Court recently ruled that a sexual harassment claim may be brought by someone of same sex of the alleged harasser. Click here for text of case.
The California Code Sections that deal with age, disability, race, religion gender, national origin and sex related discrimination can be found here.

 Misrepresentation-Under this theory, the basis of the claim is that the employer in some manner expressly or by implication induced an employee to do something(or not to do something).  The classic example is inducing an employee to relocate.  This is governed by Labor Code 970.  To succeed on this theory the employee must prove essentially all the elements of "common law" misrepresentation. Back to index