The default employment relationship in California presumes that both the employer and the employee can terminate the relationship at any time, with or without cause, and with or without notice. For example, an employee could resign for personal reasons without giving two weeks’ notice, and an employer could terminate an employee without providing a specific reason. This foundational principle governs most employment relationships in the state, although exceptions exist.
This system provides flexibility for both employers and employees to adapt to changing circumstances. It allows businesses to respond quickly to economic shifts and adjust their workforce as needed. Simultaneously, it empowers individuals to pursue new opportunities without being locked into undesirable positions. Historically, this doctrine emerged as a response to the earlier master-servant relationship, which often bound individuals to long-term employment arrangements with limited autonomy. This modern approach fosters a dynamic labor market that encourages innovation and economic growth.
