Wrongful Termination vs. At-Will Employment: What’s the Difference?

April 1, 2025

Losing a job can be a stressful and frustrating experience, especially if you feel it was unfair. Many employees in California wonder if they were wrongfully terminated or if their employer had the legal right to fire them under at-will employment. Understanding the difference between wrongful termination and at-will employment is key to determining whether your firing was legal or if you have grounds to take legal action.

What Is At-Will Employment?

California is an at-will employment state, meaning employers can terminate employees at any time, for any reason, or for no reason at all—so long as the reason is not illegal. Similarly, employees have the right to quit their jobs at any time without giving a reason.

At-will employment allows businesses to make personnel changes as needed, but it does not give employers the right to fire someone for unlawful reasons. If an employer fires an employee in violation of state or federal laws, that may be considered wrongful termination.

What Is Wrongful Termination?

Wrongful termination occurs when an employer fires an employee for an illegal reason. Even in an at-will employment state like California, employers cannot terminate workers in ways that violate labor laws, anti-discrimination laws, or contracts.

Common examples of wrongful termination include:

• Discrimination – Firing an employee because of race, gender, age, disability, pregnancy, sexual orientation, religion, or other protected characteristics.
• Retaliation – Firing an employee for reporting harassment, discrimination, wage violations, or unsafe working conditions.
• Violation of Public Policy – Firing an employee for refusing to engage in illegal activity or exercising a legal right, such as taking family leave or serving on a jury.
• Breach of Contract – Firing an employee in violation of an employment contract that specifies terms of termination.

Key Differences Between Wrongful Termination and At-Will Employment

The main difference between at-will employment and wrongful termination is legality. At-will employment allows employers to fire employees for almost any reason, but wrongful termination occurs when a firing violates the law.

For example, an employer can legally fire an at-will employee for poor performance, company downsizing, or simply because they no longer need the position. However, an employer cannot legally fire an employee for filing a workplace discrimination complaint, requesting medical leave, or reporting safety violations.

Another difference is that wrongful termination cases require illegal intent. If an employee believes they were fired for discriminatory or retaliatory reasons, they need to show that the employer’s decision was unlawful.

What to Do If You Believe You Were Wrongfully Terminated

If you suspect that your termination was illegal, you should take immediate steps to protect your rights. Start by gathering evidence, such as termination letters, emails, performance evaluations, and witness statements that may support your claim. If you believe you were fired for reporting misconduct, keep copies of complaints you filed with HR or external agencies.

If your termination was wrongful, you may be entitled to back pay, lost benefits, damages for emotional distress, and possible reinstatement. Filing a lawsuit against your employer can also result in additional penalties for their illegal actions.

How an Employment Attorney Can Help

Wrongful termination cases can be complex, and employers often try to justify firings as part of at-will employment. An experienced employment attorney can help analyze your case, gather evidence, and file the necessary legal claims.