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At-Will Employment Policy

1. Policy Statement

Employment with [Company Name] is "at-will" as is standard under California law. This means that either the company or the employee may terminate the employment relationship at any time, for any lawful reason, with or without cause and with or without advance notice. This policy is not a contract of employment and does not create any contractual rights to employment for a definite period. It supersedes any verbal or written statements to the contrary unless they are part of an explicit, written employment agreement for a specified term, signed by an authorized officer of the company.

2. Understanding At-Will Employment

The at-will doctrine provides flexibility for both the employer and the employee. For the employee, it means you are free to leave your employment at any time, for any reason, without notice. For the company, it provides the ability to manage our workforce based on business needs, performance, and lawful conduct.

3. Protections from Unlawful Termination

While the at-will relationship is broad, it is not limitless. As a California-based company, we are committed to upholding all legal protections for our employees. The at-will doctrine does not permit the termination of an employee for reasons that are illegal under federal or California law. This includes, but is not limited to, termination based on:

  • Protected Characteristics: An employee's race, color, religion, creed, sex, gender (including pregnancy, childbirth, or related medical conditions), gender identity, gender expression, sexual orientation, marital status, national origin, ancestry, physical or mental disability, medical condition, genetic information, age (40 or older), veteran or military status, or any other characteristic protected by law under the California Fair Employment and Housing Act (FEHA).
  • Protected Activities: The at-will policy does not apply to employees who are terminated for engaging in certain legally protected activities, which are considered to be in violation of public policy in California. These activities include, but are not limited to:
  • Filing a Complaint: Filing a complaint or participating in an investigation related to wages, hours, or working conditions, as protected by California Labor Code § 98.6.
  • Reporting a Violation: Reporting or cooperating in the investigation of illegal workplace activities, such as health and safety violations, financial fraud, or discrimination (also known as "whistleblowing," as protected by Labor Code § 1102.5).
  • Taking a Legally Protected Leave: Taking a legally protected leave of absence, including leave under the California Family Rights Act (CFRA), Family and Medical Leave Act (FMLA), California Paid Sick Leave (PSL), or for jury duty.
  • Exercising Labor Code Rights: Exercising their rights under the California Labor Code, such as requesting a meal or rest break.
  • Concerted Activities: Engaging in concerted activities with other employees for the purpose of collective bargaining or other mutual aid or protection, as protected by the National Labor Relations Act (NLRA).
  • Off-Duty Conduct: Termination based on an employee's lawful off-duty conduct that is not in conflict with the employer’s business interests, as protected by Labor Code § 96(k).
  • Discussions about Wages: Discussing your wages or the wages of other employees, which is a protected activity under federal and state law.

4. Public Policy and Legal Exceptions

The at-will doctrine in California is balanced by the "public policy" exception. This exception holds that an employer cannot terminate an employee if the termination would violate a fundamental public policy articulated in a statute or constitutional provision. This policy is designed to uphold those protections.

It is important to note that, unlike in some other states, California generally does not recognize an "implied contract" exception to the at-will doctrine. This means that a history of positive performance reviews, long tenure, or verbal assurances of continued employment do not, in themselves, create a legally binding contract that would override this at-will policy. Similarly, California does not recognize a broad "covenant of good faith and fair dealing" that would limit the at-will relationship.

5. Exceptions to At-Will Employment

In the rare event that an employee is subject to a written employment contract for a specified term, the terms of that contract will govern the employment relationship. This policy will not apply to any employee covered by a collective bargaining agreement unless that agreement explicitly incorporates this policy.

6. Acknowledgment

By accepting and continuing employment with [Company Name], you acknowledge that you understand and agree to the at-will nature of your employment. This policy can only be changed by a written document signed by the CEO or another authorized executive of [Company Name].

 

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