Process of Termination: California
Federal law and guidance on this subject should be reviewed together with this section.
Author: Alice Wang, Fisher Phillips
- California employers may not include provisions in separation agreements that ban employees from disclosing information about unlawful acts. See Separation and Nondisparagement Agreements.
- California employers must comply with state regulations pertaining to payment of final wages to terminated employees, including specific provisions that pertain to layoffs and employees engaged in seasonal, agricultural endeavors. See Payment of Final Wages.
- California employers may face fines or other penalties for failure to pay outgoing employees their final wages on a timely basis. See Penalties for Untimely Payment.
- California employers should deliver final payment in a way that ensures delivery to the intended recipient, or at least, protects the employer in situations where the recipient claims payment was never received. See Method of Paying Final Wages.
- Employers also are obligated to deliver final payment to employees who voluntarily resign employment. See Payment of Final Wages Upon Resignation.
- There is no legal requirement under California law that employers provide severance pay to an employee upon termination of employment. See Severance Pay.