A Los Angeles employee is called into a conference room on a Thursday afternoon, handed a separation agreement with a severance check attached, and told the offer expires at close of business. She signs it in the parking lot. Three weeks later she learns that two other women in her department were terminated the same month, that California gave her at least five business days to consider that agreement, and that the release she signed covers claims she did not know she had.
Almost every expensive employment problem has a moment like that in it, a point where a decision made in an afternoon foreclosed options worth far more than a consultation. Early advice is cheap because it is advisory; late advice is expensive because it is remedial. Speaking with an employment lawyer in Los Angeles before you sign, before you send the resignation email, or before you terminate someone typically costs a fraction of what it costs to unwind the decision afterward, and in California the gap between those two numbers is unusually wide because state law gives employees substantially more than federal law does.
The Deadlines Are the Whole Ballgame
Nothing else in this article matters if the clock has already run. California deadlines are layered, and the one that applies depends on the claim rather than on the incident, which is exactly why people misjudge them.
| Claim type | Deadline | Where it is filed |
|---|---|---|
| Discrimination, harassment, or retaliation under FEHA | Three years from the last unlawful act to file an administrative complaint, then one year from the right-to-sue notice to file suit | California Civil Rights Department |
| Federal discrimination claims under Title VII, ADA, ADEA | 300 days from the act in California as a deferral state, then 90 days after the right-to-sue notice | Equal Employment Opportunity Commission |
| Unpaid wages, overtime, and meal or rest premiums | Generally three years, extended to four where an unfair competition claim applies | Labor Commissioner or superior court |
| Written employment contract breach | Four years | Superior court |
| Oral contract breach | Two years | Superior court |
| Wrongful termination in violation of public policy | Two years | Superior court |
| Waiting time penalties for late final pay | Three years | Labor Commissioner or superior court |
Two practical notes. The administrative step in a FEHA case is not optional; you generally must obtain a right-to-sue notice before filing in court. And where the same facts support both a state and a federal claim, the shorter federal window can quietly expire while the state claim is still very much alive, which is a reason to identify every available theory early rather than after choosing a forum.
For Employees: Six Moments Worth a Phone Call
- Before you sign a separation or severance agreement. California restricts what these documents may contain. Provisions that prevent an employee from disclosing information about unlawful acts in the workplace, including harassment and discrimination, are limited by state law, and an employee being offered a separation agreement is entitled to notice of the right to consult an attorney and a period of at least five business days to consider it. If you are 40 or older, federal law adds a 21-day consideration period, extended to 45 days in a group termination, plus a seven-day revocation window after signing.
- Before you resign. Quitting can forfeit unemployment benefits and can weaken a constructive discharge argument if the record does not show you gave the employer a chance to fix the conditions. There are situations where resigning is right, but the sequencing matters.
- When you are asked to sign a new agreement mid-employment. Arbitration clauses, confidentiality terms, and assignment provisions attached to a routine handbook acknowledgment change your rights materially. Note that California voids most noncompete agreements under Business and Professions Code section 16600, and legislation effective in 2024 made such clauses unenforceable in California even when signed elsewhere, while also requiring employers to notify affected employees.
- When your pay does not match your hours. Misclassification as exempt or as an independent contractor, off-the-clock work, missed meal and rest periods, and inaccurate wage statements each carry their own remedies. Understanding the role of pay stubs in wage disputes is a useful starting point, because the wage statement is often the document that proves the violation.
- Before you report something. California protects employees who disclose suspected violations of law under Labor Code section 1102.5, and the California Supreme Court confirmed in 2022 that an employer must prove by clear and convincing evidence that it would have taken the same action for legitimate reasons. Understanding the protection before you report is safer than discovering it after you are fired.
- Immediately after a termination that feels pretextual. Evidence has a shelf life. Text messages, Slack history, performance reviews, and witnesses all become harder to secure with every week that passes.
Employees who suspect they are owed money should read What Employees Should Know About Pursuing Claims for Unpaid Compensation for the mechanics of the wage claim process before deciding between the Labor Commissioner and court.
For Employers: Where Early Advice Costs the Least
The pattern in California is that small process failures become statutory penalties, and statutory penalties aggregate across a workforce. The places where an hour of counsel reliably prevents a five-figure problem are predictable.
- Classification. The ABC test codified in Labor Code section 2775 governs most independent contractor questions, and exempt classification under California’s duties and salary tests is stricter than the federal standard. A single misclassified role replicated across a department is how a small issue becomes a class-wide one.
- Meal and rest period practice. Premiums under Labor Code section 226.7 accrue per employee per day. A scheduling habit, not an act of bad faith, is usually what generates the exposure.
- Wage statements. Itemized wage statement requirements under Labor Code section 226 are technical and carry their own penalties, independent of whether the employee was actually underpaid.
- Final pay timing. An employee who is terminated is generally due final wages immediately, and an employee who quits with at least 72 hours notice is due final wages at separation. Late payment can trigger waiting time penalties of up to 30 days of wages.
- Documentation before termination. A performance file that begins the week of the termination is the single most common evidentiary problem employers create for themselves.
- Investigation quality. A prompt, impartial, documented investigation is both the legal obligation and the practical defense. An investigation run by the accused person’s direct supervisor is neither.
- Leave administration. The California Family Rights Act applies at a much lower employee threshold than the federal FMLA, and pregnancy disability leave runs separately. Denying leave that state law requires is a straightforward liability.
Employers in regulated industries have an additional layer, because sector-specific federal statutes attach their own penalty schedules for non-compliance that operate independently of employment law. An adverse action against an employee who raised a regulatory concern can therefore implicate two enforcement regimes at once.
Get the Documents While You Still Can
California gives employees affirmative rights to their own records, and those rights are easiest to exercise before a relationship deteriorates. Labor Code section 1198.5 entitles current and former employees to inspect or copy their personnel file, generally within 30 days of a written request. Labor Code section 226(b) entitles them to payroll records on a shorter timeline. Requests should be in writing, dated, and kept.
Beyond the employer’s files, assemble your own: offer letter and any amendments, the handbook version in effect during your employment, every performance review, the schedule and timekeeping records you can access, contemporaneous notes with dates, and any written communication about the issue. Save copies to a personal account rather than a company device, but take only what relates to your own employment; removing confidential company data creates a separate problem that will be raised against you.
Retaliation Is Often the Stronger Claim
Underlying complaints are frequently harder to prove than what happens after them. A retaliation claim needs protected activity, an adverse action, and a causal link, and the timing between the two often supplies the third element on its own. California protects a broad range of protected activity: complaining about discrimination or harassment, reporting suspected legal violations under Labor Code section 1102.5, raising safety concerns, filing a wage claim, and discussing wages and working conditions with coworkers, which is also protected concerted activity under federal labor law regardless of whether a union is involved.
This is why the advice to document dates matters so much. A performance improvement plan that appears eleven days after a complaint is a very different fact from one that appears eleven months after.
Frequently Asked Questions
How much does an initial employment law consultation cost?
Most employee-side employment lawyers in California offer a free or low-cost initial consultation and take viable cases on contingency, so there is no hourly cost to find out whether you have a claim. Employer-side counsel typically bills hourly or on a retainer. Either way, the cost of asking early is almost always smaller than the cost of the decision you are about to make.
Can I be fired for no reason in California?
Generally yes, because California employment is presumed at-will under Labor Code section 2922. But at-will does not mean for any reason. Termination that is motivated by a protected characteristic, that retaliates against protected activity, that violates a public policy, or that breaches an implied or written contract is unlawful regardless of the at-will presumption.
Should I sign a severance agreement right away?
No. California requires that an employee offered a separation agreement be notified of the right to consult an attorney and be given at least five business days to consider it, and federal law provides longer periods for workers 40 and older. An employer stating that the offer expires today is exerting pressure, not describing a legal deadline. Ask for the deadline in writing.
Is my noncompete enforceable in California?
Almost certainly not. Business and Professions Code section 16600 voids most restraints on lawful practice of a profession, and legislation effective in 2024 extended that to agreements signed in other states and required employers to notify affected employees. Narrow exceptions exist, primarily around the sale of a business. Trade secret and confidentiality obligations are separate and remain enforceable.
What if I already missed a deadline?
Talk to a lawyer anyway. The limitations period depends on the claim rather than the incident, and the same facts often support several claims with different clocks, so a lapsed federal charge does not necessarily end a state wage or FEHA claim. Continuing violations, delayed discovery, and tolling rules can also apply. Do not self-diagnose a deadline you have not confirmed.
What to Do This Week
If you are an employee facing a decision, do one thing before anything else: ask for the document in writing and ask for time. A written request for the deadline, the agreement, your personnel file, and your payroll records costs you nothing, creates a record, and buys the days you need to get advice. If you are an employer, pull three things this quarter and have them reviewed: your exempt classification list, a sample of wage statements, and the last two termination files. Those three reviews catch the majority of the problems that become claims. For more coverage of workplace and employment issues, see the Legal Advice section.
This article is general information about California employment law and is not legal advice; consult a licensed attorney about your specific situation.
