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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.
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- 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
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- 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.
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