California Layoffs and Unemployment: Do You Smell Something Fishy?
It seems more and more commonplace these days that employees are being terminated for what their employers deem “cause.”
In interviewing several of our clients over the past several months, one bank employee stated he was terminated in June of 2009 for a pornographic email that bank management discovered he received in 2004. The bank indicated he followed policy in deleting the email, but failed to report that he received it. The result? The bank terminated him and is now disputing his unemployment insurance claim and taking the position that they fired him for cause.
He is not alone. With the massive layoffs occurring in this economy, employers fear California wrongful termination lawsuits, California discrimination lawsuits as well as an increase cost in unemployment insurance premiums.
STRATEGY: Document, document, document.
If an employee fears unjust retaliation, trumped up charges of misconduct or other hostile activities from an employer, it is important to expose these and other potentially illegal activities to management IN WRITING and contact a California labor law attorney at once.
California is an at will employment state and unless there is an employment contract that guarantees tenure, or the employee is in a protected class (i.e. gender, sexual orientation, disabled, pregnant, etc) there is little protection to a firing or layoff.
This is why prompt reporting of any illegal activities i.e. failure to pay overtime, falsifying time cards, or other fraudulent conduct to law enforcement or the appropriate government agency may offer protection under California Labor Code 1102.5 and related regulations under California Whistleblower laws.
In addition, it is often wise for an employee to make management aware of claims under the California whistleblower statutes. This reporting may be the difference between retaining employment and a wrongful termination; as the employer may be exposed to liability once made aware of the claim. Speak to a California labor law lawyer prior to acting, however.
In accordance with California Labor Code 98.6, an employer may be required to re-instate employment benefits and wages as well as correct wrongdoing should retaliation be proven.

