In California, the default employment relationship is one of “at-will” employment. This means that either the employer or the employee can terminate the relationship at any time, with or without cause or advance notice, unless there is an express or implied contract or agreement stating otherwise. For example, an employee could resign for any reason, just as an employer could terminate an employee without providing a specific justification, as long as the reason isn’t discriminatory or otherwise illegal.
This legal framework provides flexibility for both employers and employees. Businesses can adapt to changing market conditions by adjusting their workforce, while individuals are free to pursue new opportunities without being bound to a particular employer. However, this flexibility is tempered by important legal protections. California law prohibits terminating employees for discriminatory reasons related to protected characteristics such as race, religion, gender, age, or disability. Furthermore, public policy exceptions and implied contracts can limit an employer’s ability to terminate an employee. This evolved from earlier eras where employment relationships were often more fixed, giving rise to the need for a more dynamic and adaptable system.
