Templates Demand Letters Wrongful Termination Demand Letter - California
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WRONGFUL TERMINATION DEMAND LETTER

STATE OF CALIFORNIA


[ATTORNEY/FIRM LETTERHEAD]

[Firm Name]
[Address Line 1]
[City, California ZIP]
Tel: [Phone Number]
Fax: [Fax Number]
[Attorney Email]
[State Bar of California Number]


VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED
AND VIA EMAIL TO: [recipient_email]

[Date]

[Employer Contact Name]
[Title]
[Company Legal Name]
[Company Address]
[City, State ZIP]

Re: Wrongful Termination of [Client Full Name]
Former Position: [Job Title]
Dates of Employment: [Start Date] through [Termination Date]
CONFIDENTIAL SETTLEMENT COMMUNICATION PURSUANT TO CAL. EVID. CODE Section 1152

Dear [Mr./Ms./Mx. Last Name]:

This firm represents [Client Full Name] ("our client" or "[Mr./Ms./Mx. Client Last Name]") regarding [his/her/their] wrongful termination from employment with [Company Legal Name] ("[Company Short Name]" or "the Company") on or about [Termination Date]. Please direct all further communications regarding this matter to our office and refrain from any direct contact with our client.

We write to demand immediate action to remedy the unlawful termination of our client and to resolve this matter short of litigation. As detailed below, [Company Short Name] terminated our client in violation of California law and public policy, exposing the Company to substantial liability for compensatory damages, punitive damages, and attorney's fees.


I. CALIFORNIA EMPLOYMENT LAW FRAMEWORK

A. At-Will Employment and Exceptions

California Labor Code Section 2922 establishes that employment without a specified term is presumed to be at-will. However, California provides among the strongest protections for employees in the nation through both statutory and common law exceptions.

B. Public Policy Exception (Tameny Doctrine)

California strongly recognizes wrongful termination claims in violation of public policy. Tameny v. Atlantic Richfield Co., 27 Cal.3d 167 (1980). Under this doctrine, an employee may bring a tort claim for wrongful termination when discharged for:

  • Refusing to violate a statute - Termination for refusing to commit an illegal act
  • Performing a statutory duty or obligation - Jury duty, reporting violations of law
  • Exercising a statutory right or privilege - Filing workers' compensation claims, taking FMLA/CFRA leave
  • Reporting violations of law - Whistleblowing under Labor Code Section 1102.5

The public policy must be: (1) delineated in either constitutional or statutory provisions; (2) "public" in the sense that it inures to the benefit of the public rather than serving merely the interests of the individual; (3) well established at the time of the discharge; and (4) substantial and fundamental. Stevenson v. Superior Court, 16 Cal.4th 880 (1997).

C. Implied Contract Exception

California recognizes that implied contracts may limit an employer's right to terminate. Foley v. Interactive Data Corp., 47 Cal.3d 654 (1988). Factors creating an implied contract include:

  • Personnel policies or practices of the employer
  • Employee's longevity of service
  • Actions or communications by the employer reflecting assurances of continued employment
  • Practices of the industry in which the employee is engaged

D. Implied Covenant of Good Faith and Fair Dealing

California recognizes a limited implied covenant of good faith and fair dealing in employment. However, under Foley, breach of this covenant sounds in contract (not tort) and is primarily limited to situations where the employer acts in bad faith to deny the employee benefits of the employment contract.


II. CALIFORNIA STATUTORY PROTECTIONS

A. Fair Employment and Housing Act (FEHA)

California Government Code Section 12940 et seq. prohibits employment discrimination based on:
- Race, color, national origin, ancestry
- Religion, creed
- Age (40 and older)
- Disability (physical and mental)
- Sex, gender, gender identity, gender expression
- Sexual orientation
- Marital status
- Medical condition (cancer/genetic characteristics)
- Genetic information
- Military and veteran status
- Reproductive health decision-making

Employer Coverage: FEHA applies to employers with five (5) or more employees for most provisions. Gov. Code Section 12926(d).

Administrative Exhaustion: Complaints must be filed with the California Civil Rights Department (CRD, formerly DFEH) within three (3) years of the alleged violation. Gov. Code Section 12960(e).

Right to Sue: Employee may request immediate right-to-sue letter or wait for CRD investigation.

Remedies: Gov. Code Section 12965 provides:
- Back pay and benefits
- Front pay
- Compensatory damages (including emotional distress) - no cap
- Punitive damages - no cap
- Reasonable attorney's fees and costs
- Injunctive relief

B. California Labor Code Whistleblower Protections

Labor Code Section 1102.5 (Primary Whistleblower Statute):
Prohibits retaliation against employees who:
- Disclose information to a government or law enforcement agency about a reasonably suspected violation of law
- Provide information to, or testify before, any public body conducting an investigation or hearing
- Refuse to participate in activity that would result in a violation of law

Remedies under Section 1102.5:
- Reinstatement
- Back pay
- Interest
- Other appropriate relief

Labor Code Section 98.6:
Protects employees who file complaints with the Labor Commissioner or participate in Labor Commissioner proceedings.

Labor Code Section 6310:
Protects employees who report workplace safety violations or participate in OSHA proceedings.

C. Workers' Compensation Retaliation

Labor Code Section 132a prohibits discrimination against employees who:
- File or threaten to file workers' compensation claims
- Receive workers' compensation awards
- Testify in workers' compensation proceedings

Remedies:
- Reinstatement
- Back wages with interest
- Increased compensation up to $10,000
- Costs and attorney's fees

D. California Family Rights Act (CFRA)

Government Code Section 12945.2 provides up to 12 weeks of unpaid, job-protected leave for:
- Birth/adoption/foster placement of child
- Serious health condition of employee or family member

Note: CFRA has been expanded to cover employers with 5+ employees and include additional family members.

E. California WARN Act

Labor Code Section 1400 et seq. (Cal-WARN) requires 60 days' notice before:
- Plant closings affecting 50+ employees
- Mass layoffs affecting 50+ employees
- Relocations of 100+ miles

Threshold: Applies to employers with 75+ employees. More protective than federal WARN in some respects.

F. Additional California Protections

Labor Code Section 230: Protects employees who are victims of domestic violence, sexual assault, or stalking.

Labor Code Section 230.8: Protects employees who participate in child's school activities.

Elections Code Section 14000: Paid time off to vote.

Labor Code Section 1101-1102: Protects employees' political activities.

Labor Code Section 96(k): Protects lawful off-duty conduct.


III. FACTUAL BACKGROUND

A. Employment History and Performance

[Client Full Name] was employed by [Company Short Name] from [Start Date] through [Termination Date], a period of approximately [X years/months]. [He/She/They] most recently held the position of [Job Title] in the [Department], reporting to [Supervisor Name and Title].

Throughout [his/her/their] tenure, our client was a dedicated, high-performing employee:

  • [Describe positive performance reviews, ratings, or commendations]
  • [Describe any promotions, raises, or increased responsibilities]
  • [Describe any awards, recognition, or special achievements]
  • [Describe positive feedback from supervisors, clients, or colleagues]

At no time prior to [Date of First Adverse Action] did our client receive any disciplinary action or warning suggesting [his/her/their] employment was in jeopardy.

B. The Protected Activity / Triggering Event

On or about [Date], our client engaged in protected activity:

  • [ ] Reported illegal activity or regulatory violations to management or government agency (Lab. Code Section 1102.5)
  • [ ] Refused to participate in illegal or unethical conduct
  • [ ] Filed a workers' compensation claim (Lab. Code Section 132a)
  • [ ] Reported workplace safety violations (Lab. Code Section 6310)
  • [ ] Exercised rights under CFRA/FMLA
  • [ ] Filed a wage complaint with the Labor Commissioner (Lab. Code Section 98.6)
  • [ ] Complained about discrimination or harassment under FEHA
  • [ ] Participated in an internal or external investigation
  • [ ] Served on jury duty
  • [ ] Other protected activity: [Describe]

Specifically, our client [provide detailed narrative of the protected activity, including dates, witnesses, and documentation].

C. Adverse Employment Actions and Termination

Following our client's protected activity, [Company Short Name] engaged in retaliatory conduct:

Timeline of Adverse Actions:

Date Adverse Action Responsible Party
[Date] [Describe adverse action] [Name/Title]
[Date] [Describe adverse action] [Name/Title]
[Termination Date] Termination of employment [Name/Title]

On [Termination Date], [Supervisor/HR Representative Name] informed our client that [his/her/their] employment was being terminated. The stated reason of [employer's stated reason] is pretextual, as evidenced by:

  1. [Temporal proximity between protected activity and termination]
  2. [Disparate treatment compared to similarly situated employees]
  3. [Statements or evidence of retaliatory/discriminatory motive]
  4. [Deviation from standard company policies or procedures]
  5. [Inconsistent or shifting explanations for termination]

IV. LEGAL CLAIMS

A. Wrongful Termination in Violation of Public Policy (Tameny)

[Company Short Name]'s termination of our client constitutes a tort claim for wrongful termination in violation of California's fundamental public policy. Under Tameny v. Atlantic Richfield Co., 27 Cal.3d 167 (1980), and its progeny, terminating an employee for [describe protected activity] is actionable.

The public policy violated is clearly established in [cite specific statute(s) or constitutional provision(s)]:
- [E.g., Labor Code Section 1102.5 - whistleblower protection]
- [E.g., Government Code Section 12940 - FEHA anti-retaliation]
- [E.g., Labor Code Section 132a - workers' compensation retaliation]

This claim supports recovery of tort damages including emotional distress and punitive damages.

B. Violation of Labor Code Section 1102.5 (Whistleblower Retaliation)

[If applicable:] Our client reported [describe the suspected violation of law] to [identify recipient of disclosure] on [Date]. This disclosure constituted protected whistleblowing activity under Labor Code Section 1102.5.

[Company Short Name]'s subsequent termination was in direct retaliation for this protected disclosure, in violation of Section 1102.5.

C. Violation of Labor Code Section 132a (Workers' Compensation Retaliation)

[If applicable:] Our client filed a workers' compensation claim on [Date] for injuries sustained on [Date]. [Company Short Name] terminated our client in retaliation for exercising [his/her/their] rights under California's workers' compensation system, in violation of Labor Code Section 132a.

D. Violation of FEHA (Government Code Section 12940)

[If applicable:] Our client's termination constitutes unlawful discrimination and/or retaliation in violation of FEHA:

  • [ ] Discrimination based on [protected characteristic] in violation of Gov. Code Section 12940(a)
  • [ ] Retaliation for opposing practices forbidden by FEHA in violation of Gov. Code Section 12940(h)
  • [ ] Failure to prevent discrimination/harassment in violation of Gov. Code Section 12940(k)

[Describe the discriminatory/retaliatory conduct and evidence supporting the claim.]

Administrative Status: [Our client has filed / intends to file] a complaint with the Civil Rights Department and [has obtained / will request] a right-to-sue letter.

E. Breach of Implied Contract

[If applicable:] [Company Short Name]'s employee handbook, policies, and representations created an implied contract limiting termination to "for cause" situations after following progressive discipline procedures.

Evidence of the implied contract includes:
- [Specific handbook language suggesting job security]
- [Longevity of service: X years]
- [Oral assurances made by management]
- [Company's established disciplinary practices]

[Company Short Name] breached this implied contract by terminating our client without cause and without following established procedures.

F. Breach of Implied Covenant of Good Faith and Fair Dealing

[If applicable:] [Company Short Name] breached the implied covenant of good faith and fair dealing by terminating our client in bad faith to deprive [him/her/them] of earned benefits, including [describe specific benefits, e.g., commissions, bonuses, stock vesting].

G. [Additional Claims as Applicable]

[Insert additional claims such as CFRA violation, wage and hour claims, etc.]


V. DAMAGES

A. Statute of Limitations

  • Tameny Claim (Tort): Two (2) years. Cal. Code Civ. Proc. Section 335.1.
  • Breach of Contract: Four (4) years for written; two (2) years for oral. Cal. Code Civ. Proc. Sections 337, 339.
  • Labor Code Violations: Three (3) years. Cal. Code Civ. Proc. Section 338.
  • FEHA Claims: Three (3) years to file with CRD. Gov. Code Section 12960(e).

This claim arises from termination on [Date], and therefore the shortest limitations period expires on [Date].

B. Economic Damages

1. Lost Wages (Back Pay)

Category Calculation Amount
Base salary lost [Annual salary] x [months] / 12 $[Amount]
Bonus/incentive compensation [Expected bonus] x [period] $[Amount]
Commission income lost [Average commission] x [period] $[Amount]
Overtime compensation [Average OT] x [period] $[Amount]
Subtotal Back Pay $[Amount]

2. Lost Benefits

Benefit Monthly Value Months Amount
Health insurance (employer portion) $[Amount] [X] $[Amount]
Retirement/401(k) match $[Amount] [X] $[Amount]
Stock options/RSUs $[Amount]
Other benefits $[Amount] [X] $[Amount]
Subtotal Benefits $[Amount]

3. Front Pay / Future Lost Earnings

Category Calculation Amount
Future salary differential [Differential] x [years] $[Amount]
Future benefits differential [Differential] x [years] $[Amount]
Subtotal Front Pay $[Amount]

C. Non-Economic Damages

California allows recovery for emotional distress in wrongful termination cases, with no statutory cap. Our client has suffered:

  • [Describe emotional distress symptoms: anxiety, depression, humiliation, loss of sleep]
  • [Describe impact on physical health]
  • [Describe impact on personal relationships]
  • [Describe medical/psychological treatment sought]
  • [Describe reputational harm]

Estimated non-economic damages: $[Amount]

D. Punitive Damages

California allows punitive damages for wrongful termination in violation of public policy where the defendant's conduct is shown to be "oppression, fraud, or malice." Cal. Civ. Code Section 3294. California has no cap on punitive damages.

[Company Short Name]'s conduct meets this standard because:
- [Describe evidence of malice or conscious disregard]
- [Describe awareness of wrongfulness]
- [Describe involvement of managing agents in the decision]

Note: Under Cal. Civ. Code Section 3294(b), employer punitive damages require proof that a managing agent authorized or ratified the wrongful conduct.

Estimated punitive damages: $[Amount]

E. Attorney's Fees and Costs

Under FEHA (Gov. Code Section 12965), prevailing plaintiffs are entitled to reasonable attorney's fees.

Under various Labor Code provisions, fee-shifting is available for retaliation claims.

Estimated attorney's fees through trial: $[Amount]

F. Waiting Time Penalties

[If applicable:] Under Labor Code Sections 201-203, our client is entitled to waiting time penalties for failure to pay all wages due upon termination, up to 30 days' wages.

Waiting time penalties: $[Amount]

G. Mitigation of Damages

Our client has diligently sought comparable employment since [his/her/their] termination:
- [Describe job search efforts]
- [Describe applications submitted]
- [Describe interviews attended]
- [Describe any interim employment obtained]

H. Summary of Damages

Category Amount
Back Pay $[Amount]
Lost Benefits $[Amount]
Front Pay $[Amount]
Emotional Distress $[Amount]
Punitive Damages $[Amount]
Attorney's Fees (estimated) $[Amount]
Waiting Time Penalties $[Amount]
TOTAL $[Amount]

VI. SETTLEMENT DEMAND

Based on the foregoing, we hereby demand that [Company Short Name] pay our client the sum of $[Settlement Demand Amount] in full and final settlement of all claims arising from [his/her/their] wrongful termination.

In addition to monetary compensation, we require:

  • [ ] A neutral employment reference
  • [ ] Expungement of negative information from personnel file
  • [ ] Agreement not to contest unemployment benefits
  • [ ] Mutual non-disparagement provisions
  • [ ] Confidentiality provisions (subject to negotiation consistent with Cal. Gov. Code Section 12964.5)
  • [ ] [Other non-monetary terms]

VII. RESPONSE DEADLINE

Please respond to this demand in writing within twenty-one (21) calendar days of your receipt of this letter, no later than [Response Deadline Date].

If we do not receive a satisfactory response by that date, we are authorized and prepared to file suit in the Superior Court of California, County of [County], without further notice.


VIII. PRESERVATION OF EVIDENCE

This letter serves as formal notice to implement a litigation hold and preserve all documents and electronically stored information relating to our client's employment and termination.

California recognizes independent tort claims for intentional spoliation of evidence. Cedars-Sinai Med. Ctr. v. Superior Court, 18 Cal.4th 1 (1998). Failure to preserve evidence may result in sanctions and adverse inferences.


IX. CONFIDENTIALITY

This letter constitutes a confidential settlement communication protected under California Evidence Code Section 1152 and may not be used as evidence in any proceeding except to enforce a settlement agreement.


We trust that [Company Short Name] will give this matter serious attention and respond in a timely manner. Our client strongly prefers to resolve this matter without litigation but is fully prepared to pursue all available legal remedies.

Sincerely,

[Attorney Name]
[Title]
[Firm Name]
State Bar of California No. [Number]


Enclosures:
- [ ] Authorization to Represent
- [ ] [Right to Sue Letter, if obtained]
- [ ] [Supporting documentation]

cc: [Client Name] (via email)
[File]


CALIFORNIA-SPECIFIC PRACTICE NOTES

  • [ ] Strong Employee Protections: California provides among the strongest wrongful termination protections in the nation. Multiple statutory and common law theories available.

  • [ ] Tameny Claims (Tort): Public policy wrongful termination is a tort claim allowing emotional distress and punitive damages with NO CAP.

  • [ ] FEHA Three-Year Filing: Extended from one year to THREE YEARS effective January 1, 2020. Gov. Code Section 12960(e).

  • [ ] No Damage Caps: California has no caps on compensatory or punitive damages for FEHA or Tameny claims.

  • [ ] Labor Code Section 1102.5: Powerful whistleblower statute - protects disclosures to government agencies AND internal complaints about suspected violations.

  • [ ] Managing Agent Requirement: For employer punitive damages, must prove managing agent authorized or ratified the conduct. Cal. Civ. Code Section 3294(b).

  • [ ] PAGA Claims: Consider whether Private Attorneys General Act claims are available for Labor Code violations. Lab. Code Section 2698 et seq.

  • [ ] Settlement Agreement Restrictions: Gov. Code Section 12964.5 restricts non-disclosure provisions in settlement agreements involving claims of harassment, discrimination, or retaliation.

  • [ ] CCP Section 998 Offers: Consider strategic use of Code of Civil Procedure Section 998 offers to compromise for cost-shifting.

  • [ ] Prejudgment Interest: Available from date of filing complaint if certain conditions met. Cal. Civ. Code Section 3291.

  • [ ] Venue: Superior Court in county where defendant resides, where contract was made, or where wrongful act occurred.

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