California’s default employment relationship assumes that both the employer and employee can terminate the relationship at any time, for any legal reason, or for no reason at all, with or without notice. This principle allows for flexibility in the labor market, enabling businesses to adapt to changing economic conditions and individuals to pursue new opportunities. A typical example would be an employee resigning for personal reasons or an employer downsizing its workforce due to market fluctuations. However, this presumption is subject to significant exceptions.
While this system provides considerable agility, it is not absolute. Numerous legal frameworks and established precedents create exceptions to this default rule. These safeguards protect employees from unlawful termination based on discriminatory practices related to protected characteristics like age, race, religion, gender, or sexual orientation. Public policy considerations also limit at-will employment, preventing terminations for actions such as whistleblowing or jury duty. Contracts, both explicit and implied, can further modify the at-will relationship. Understanding the interplay of these factors is essential for both employers and employees navigating the Californian labor landscape.
