California employment case index

The employee-non-solicitation provision was void under section 16600 because it restrained the individual defendants — recruiters whose profession is recruiting and placing nurses — from engaging in their chosen profession; applying Edwards, the court declined to use the older “reasonableness” analysis and held such…

Section 16600 voids contracts that restrain anyone from engaging in a lawful profession, trade, or business; Edwards’s noncompetition agreement was therefore invalid. California does not recognize the federal courts’ “narrow-restraint” exception — even a limited or partial restraint on practicing one’s profession is…

A unanimous Supreme Court holds that a signed offer letter stating employment is "at will" and terminable "at any time" is unambiguous — recruitment talk of a "long-term fix" cannot create an implied for-cause contract or support fraud reliance — with Justice Baxter (joined by Corrigan) urging reconsideration of Pacific Gas and Justice Moreno reserving "upon notice" clauses.

Guz v. Bechtel National, Inc.The at-will presumption can be overcome by an implied-in-fact contract to discharge only for good cause, judged on the totality of the relationship — but the implied covenant of good faith and fair dealing cannot impose substantive limits beyond the agreement’s actual terms, and a FEHA discrimination claim must survive the […]

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…

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.

General Dynamics Corp. v. Superior Court In-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 1164 Parallel citations: 876 P.2d 487; 32 […]

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 Tameny claim failed because Foley’s report about a coworker served the employer’s private interest, not a fundamental public policy. Foley nonetheless adequately pleaded an implied-in-fact contract to discharge only for good cause — based on longevity of service, promotions, raises, assurances, and the employer’s…

Yes. The longevity of Pugh’s service, together with the employer’s commendations and assurances and its acknowledged practices, supported an implied-in-fact promise that he would not be discharged except for good cause; the nonsuit was therefore error and the judgment was reversed (id. at p. 330).