California employment case index

A steelworker fired months after testifying in a coworker’s asbestos case revived his public-policy and FEHA disability claims: they required no CBA interpretation, his union could not waive his judicial forum, and coworker evidence that the termination-night incident was staged made pretext a jury question.

An undocumented assembler bought false papers to get hired, then sued for relentless sexual harassment. The employer's only defense was after-acquired evidence of her document fraud. Following McKennon, the Court of Appeal reversed: after-acquired evidence is no complete bar to a FEHA harassment claim, an undocumented worker keeps full employment-law protection while employed, and the defense's factual predicate — whether the employer in fact would have fired her — is a jury question.

Good cause to terminate under an implied “good cause” contract means a reasoned, good-faith conclusion that the misconduct occurred, supported by substantial evidence gathered through an adequate investigation that gave the employee notice and a chance to respond — not the jury’s after-the-fact determination of…

Age discrimination in violation of the FEHA supports a common-law claim for wrongful discharge in violation of public policy. When a plaintiff relies on a statutory prohibition to support such a claim, the common-law claim is subject to the statute’s substantive limits (the nature and scope of the prohibition) but not…

In Mullins v. Rockwell International Corp. (1997) 15 Cal.4th 731, a long-tenured manager who resigned after a demotion and a steady erosion of his responsibilities sued for constructive discharge in contract; the trial court and Court of Appeal held his claims time-barred, running the limitations period from the date he learned of the adverse changes. A unanimous Supreme Court reversed. Extending its reasoning in Romano v. Rockwell, the court held that the limitations period for a contract action based on constructive discharge runs from the date of actual termination of employment — the resignation — not from the onset of, or the employee's knowledge of, the intolerable conditions. Because the breach alleged is termination without good cause, and an employee who continues to perform retains an election of remedies, the cause of action accrues only upon resignation. The court disapproved Regents of University of California v. Superior Court to the extent inconsistent.

Nine days after Fatmeh Badih told her employer — a physician with fewer than five employees — that she was pregnant, her last day was set; the DFEH would not even accept her complaint because the office was too small for the FEHA. Division One of the First District affirmed her wrongful-discharge verdict anyway, holding that pregnancy discrimination is a form of sex discrimination under article I, section 8 of the California Constitution, whose fundamental public policy against sex discrimination in employment binds every employer regardless of size. Jennings v. Marralle was distinguished, not disturbed: age has no constitutional anchor, but sex — and therefore pregnancy — does. Badih remains the pleading answer for pregnancy discharges at California's smallest workplaces.

A married couple fired by a law firm sued for wrongful termination, but the firm discovered during litigation that both had concealed felony convictions. The Court of Appeal affirmed summary judgment: their at-will acknowledgments doomed the contract claims, and the after-acquired-evidence doctrine barred the statutory and public-policy claims because the Camps had misrepresented a government-imposed job qualification, leaving them unlawfully unqualified for the position. Camp marks the point where after-acquired evidence shifts from limiting remedies to barring recovery outright.

In McKennon v. Nashville Banner Publishing Co. (1995) 513 U.S. 352, a 62-year-old secretary discharged in what the employer conceded for summary-judgment purposes was age discrimination admitted in deposition that she had copied confidential company documents during her final year. The lower courts held this after-acquired evidence barred all ADEA relief. A unanimous Supreme Court, per Justice Kennedy, reversed. Such evidence does not bar liability — the ADEA violation that prompted the discharge cannot be disregarded — but it bears on the remedy: as a general rule it forecloses reinstatement and front pay, and back pay runs only from the date of the unlawful discharge to the date the employer discovered the wrongdoing. And the employer must first prove the wrongdoing was so severe that it would in fact have discharged the employee on that ground alone.

To establish a constructive discharge, an employee must prove that the employer either intentionally created or knowingly permitted working conditions so intolerable or aggravated that a reasonable person in the employee’s position would have had no reasonable alternative but to resign; ordinary job dissatisfaction or…

General Dynamics Corp. v. Superior CourtIn-house counsel may sue for wrongful termination — both on an implied-in-fact contract theory and, within limits, a Tameny public-policy theory — even though a client may generally discharge its lawyer at will.General Dynamics Corp. v. Superior Court (1994) 7 Cal.4th 1164Parallel citations: 876 P.2d 487; 32 Cal.Rptr.2d 1. Supreme […]

A 10-year employee sued for wrongful discharge and age discrimination; the employer then discovered application misrepresentations made nearly a decade earlier and won summary judgment on the theory that the fraud forfeited all remedies. The Court of Appeal reversed, declining to adopt a blanket rule that material application falsification is a complete defense to a claim the employer did not know about when it fired the worker. The first published California decision on the point, Cooper anticipated the Supreme Court's McKennon by less than a year.

In Lakin v. Watkins Associated Industries (1993) 6 Cal.4th 644, a unanimous California Supreme Court resolved three recurring procedural and damages questions: a postjudgment order denying discovery-sanction (cost-of-proof) attorney fees is separately appealable; a personal-injury plaintiff bears the burden of proving which portion of a general award is “damages for personal injury” before claiming Civil Code section 3291 prejudgment interest; and that interest never accrues on punitive damages. The court reversed the Court of Appeal and remanded.

The discharge stated an actionable Tameny claim and was not preempted by the workers’-compensation law (id. at p. 1085). More durably, the court held that the public policy underpinning a Tameny claim must be “tethered to” specific constitutional or statutory provisions, not merely the court’s own notions of sound…

The FEHA does not displace other state-law remedies, including common-law claims, for employment discrimination; an employee need not exhaust FEHA’s administrative process before pursuing nonstatutory causes of action; and sex discrimination in employment may support a tort claim for wrongful discharge in…