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 […]

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).

In McDonald v. Santa Fe Trail Transportation Co. (1976) 427 U.S. 273, two white employees were discharged for participating in the theft of antifreeze from a shipment in their employer's care, while a Black employee charged with the same misconduct was retained. The Supreme Court held — unanimously as to Title VII, and seven-to-two as to 42 U.S.C. § 1981 — that both statutes protect against racial discrimination directed at any race, including white persons. An employer “may justifiably refuse to rehire one who was engaged in unlawful, disruptive acts against it, but only if this criterion is applied alike to members of all races.” The judgment dismissing the complaint was reversed and the case remanded.