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When "Good Cause" Isn't Good Enough

Good Cause for Termination: What is it Legally?

  • It means "fair and honest" reasons given in "good faith". Cotran v Rollins Hudig (1998) 17 C.4th 93, 108.
  • Employer makes proof of "good faith" by evidence of a decision that serves a legitimate business need or goal
  • Employer may have made a bad decision in firing based on wrong information or wrong interpretation of good information.
    • Courts will allow the mistake if there is no evidence that the decision was dishonest and in "bad faith"
    • Courts are loath to create a rule of law that forces the Court to micro-manage and second guess business decisions.
  • The Employer's duty when faced with a question of "reason to fire" is to conduct a "reasonable investigation" of the facts

What Can an Employee Do to Protect Against Deliberately False Reasons?

  • Read your personnel file periodically, and challenge in writing those criticisms that are untrue.
  • Take action to challenge the reasons for discipline before the discipline becomes final.
  • Get the names, addresses and phone numbers of co-employees who are sympathetic to your position.
  • Maintain records of events and dates that support your contention that the employer is acting dishonestly.
  • Identify and record evidence of a "double standard" of work performance--others not held to similar scrutiny or criticism.
  • Follow the internal employer policy to report a manager's bad faith behavior.
  • If internal redress not obtained, and if the behavior is harassing and discriminatory
    • file with the CA Department of Fair Employment & Housing or federal E.E.O.C., or both
    • inform the H.R. department and your supervisor you are taking this action because of their inaction to correct the problem
  • Refuse to sign warnings or evaluations stating false information unless you write "signed under protest" before your signature.
  • If co-employees are willing, have them sign a simple statement of what they actually hear or see that could be used in litigation.
  • Keep copies of emails that directly prove a "bad faith" purpose and intent, such as an admission of discriminatory intent or retaliation.
  • Use an employee rights attorney proactively for counsel and guidance before you are terminated or disciplined.

Employee Rights Attorney Frank Pray

5160 Campus Drive

Newport Beach CA 92660

949.251.1006

877.job.atty


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