HR Management & Compliance

News Notes: Wrongful Termination Law Reform Proposed

Governor Wilson has introduced legislation to reform California’s wrongful termination laws. If passed, the measure would put an end to court cases that have allowed employees to sue on the ground that the employer’s actions or practices created a promise-though not in writing-that the person could only be fired for good cause. For example, employees could no longer claim they’re not at-will simply because a manager mentioned they would have a job as long as they performed well. Wrongful termination suits could be brought only in limited situations, such as when the dismissal violated a written personnel policy or a written or oral contract of employment to work for longer than a month or where the firing was a violation of public policy. The proposal would also limit damages for lost future earnings to five years after termination. Discrimination suits would not be affected.