WORKPLACE LAW - At-Will Employer

Question:

I am confused about the concept of at-will employment. If my company is an at-will employer, does that mean that the company cannot be held liable if a discharged employee brings a discrimination claim? I have been told that we cannot terminate employees who are disabled because of a work injury.
Is this true if they are at-will employees?

Answer:

At-will employment is defined in California Labor Code section 2922 as an employment, having no specified term, that may be terminated at the will of either party on notice to the other. While employees that are at-will can be terminated at any time, for no reason and without notice, they cannot be terminated for an illegal reason. Illegal reasons would include terminating someone based on their membership in a protected class, or terminating an employee based on disability. For this reason, even employers who have been diligent about maintaining the at-will status of employees should take extra care when considering terminating employees under the following circumstances:

  1. Is the employee a member of a protected class? Federal and state law prohibit discrimination based on, among other things, an employee’s sex, race, religion, national origin, age (40 or over), disability, or sexual orientation.
  2. Is the employee disabled or has the employee recently asked for an accommodation due to a disability? It is illegal to discharge an employee based on a disability. In addition, employers in California have a mandatory duty to engage in an interactive process in order to identify accommodations that will enable a disabled employee to perform the essential functions of his/her job. Terminating an employee who has asked for an accommodation in lieu of engaging in an interactive process exposes an employer to significant liability. This is true even if there is no accommodation available that would permit the disabled employee to perform the essential functions of his/her job.
  3. Has the employee recently requested or taken a leave of absence for pregnancy, to care for an ill family member, to undergo drug or alcohol rehabilitation, or for their own illness or injury? There are state and federal laws that require employers under specified conditions (including those listed above) to provide certain amounts of leave. These laws also uniformly prohibit employers from retaliating against an employee for taking leave. These laws include the California Pregnancy Disability Leave Act, the federal Family Medical Leave Act, the California Family Rights Act and various California Labor Code provisions.
  4. Has the employee recently filed a complaint with a government agency or complained to individuals inside the company alleging that the company has engaged in illegal or improper conduct? There are numerous state and federal laws that protect what are commonly referred to as “whistle-blowers.” Employees who have recently filed or made a complaint related to illegal or improper conduct are generally protected from retaliation for filing or making that complaint. This is true even if the employee’s complaint is unfounded.
Maintaining an at-will employment relationship with its employees will go a long way towards protecting an employer from liability for wrongful termination. An at-will employment relationship will not, however, protect employers that engage in discriminatory conduct or make decisions that are otherwise illegal.
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