California Employment Law Glossary

General Employment Law

At-Will Employment — A California employment arrangement in which either the employer or employee may end the employment relationship at any time, for any reason or no reason, but which does not permit termination for an unlawful reason.

California Fair Employment and Housing Act (FEHA) — California’s primary anti-discrimination law, which prohibits harassment, discrimination, and retaliation in the workplace based on protected characteristics and applies to employers with five or more employees.

Protected Activity — Conduct shielded from employer retaliation under California law, including reporting unlawful workplace conduct, filing a complaint, requesting accommodation, taking protected leave, or participating in a workplace investigation.

Protected Characteristic — A personal attribute that California law prohibits employers from using as the basis for adverse employment decisions, including race, gender, age, disability, religion, national origin, sexual orientation, gender identity, pregnancy, and marital status.

Adverse Employment Action — A materially negative change in the terms or conditions of employment, such as termination, demotion, reduction in pay, denial of promotion, or significant change in job duties.

Employer — Under California law, any person, corporation, or entity that employs one or more individuals, subject to varying thresholds depending on the specific statute at issue.

Employee — An individual who performs services for an employer under an employment relationship, as distinguished from an independent contractor, with entitlement to protections under California labor and employment laws.

Independent Contractor — A worker classified as self-employed who performs services for a business under a contract, but who may be entitled to employee protections if the classification does not satisfy California’s ABC test or other applicable standards.

ABC Test — California’s primary standard for determining whether a worker is an employee or independent contractor, requiring the hiring entity to show the worker is free from control, performs work outside the usual course of business, and is engaged in an independently established trade.

Statute of Limitations — The deadline by which an employee must file a claim or lawsuit, which varies depending on the type of employment claim and whether an administrative complaint must first be filed with a government agency.

Contingency Fee — A fee arrangement in which an attorney is paid only if the client receives compensation, typically as a percentage of the recovery, allowing employees to pursue claims without paying legal fees upfront.

Arbitration — A private dispute resolution process in which a neutral arbitrator hears and decides employment claims outside of court, often required by employer arbitration agreements signed as a condition of employment.

Class Action — A lawsuit brought by one or more employees on behalf of a larger group of similarly situated workers who have been harmed by the same employer policy or practice.

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Wage and Hour Law

Wage and Hour Law — The body of California and federal law governing how employees must be paid, including minimum wage, overtime, meal and rest breaks, wage statements, and final pay requirements.

Overtime — Additional compensation owed to non-exempt employees who work more than eight hours in a workday or forty hours in a workweek, paid at one and one-half times the regular rate, or double time after twelve hours in a workday under California law.

Exempt Employee — An employee classified as not entitled to overtime or certain other wage protections based on job duties, level of independent judgment, and minimum salary, under California or federal law exemptions.

Non-Exempt Employee — An employee who is entitled to overtime pay, meal and rest breaks, and other protections under California wage and hour law, regardless of how they are paid.

Misclassification — An employer’s improper designation of a worker as an independent contractor or exempt employee in order to avoid paying wages, overtime, benefits, or other compensation required by California law.

Meal Period — A duty-free, uninterrupted break of at least thirty minutes that California employers must provide to non-exempt employees who work more than five hours in a workday, with a premium of one hour of pay owed for each missed, late, or interrupted meal period.

Rest Period — A paid break of at least ten minutes that California employers must authorize and permit for non-exempt employees for every four hours worked, or major fraction thereof, with a premium of one hour of pay owed for each missed or denied rest period.

Wage Statement — A written record employers are required to provide each pay period under California Labor Code Section 226, showing hours worked, rates of pay, gross and net wages, deductions, and other required information.

Waiting Time Penalties — Penalties owed to an employee when a California employer willfully fails to pay all final wages on time after termination or resignation, calculated as one day of wages for each day of delay up to thirty days.

Off-the-Clock Work — Work performed by an employee before clocking in, after clocking out, or during an unpaid break period, for which the employer is required to pay wages under California law.

PAGA (Private Attorneys General Act) — A California law that allows employees to sue employers on behalf of themselves and other aggrieved employees for Labor Code violations, with civil penalties shared between the employee, other workers, and the state.

Minimum Wage — The lowest hourly rate an employer is legally permitted to pay an employee under California law, which exceeds the federal minimum wage and may be higher in certain cities and counties.

Business Expense Reimbursement — The obligation under California Labor Code Section 2802 for employers to reimburse employees for all necessary expenditures incurred in the course of performing their job duties.

Final Paycheck — All wages earned and unpaid at the time of separation from employment, which California law requires to be paid immediately upon termination or within 72 hours of an employee’s resignation.

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Discrimination and Harassment

Workplace Discrimination — Unlawful treatment of an employee or job applicant based on a protected characteristic that affects the terms, conditions, or privileges of employment, including hiring, pay, promotion, discipline, or termination.

Workplace Harassment — Unwelcome conduct based on a protected characteristic that is severe or pervasive enough to alter the conditions of employment or create a hostile, intimidating, or offensive work environment.

Hostile Work Environment — A form of unlawful harassment in which severe or pervasive conduct based on a protected characteristic interferes with an employee’s ability to perform their job or creates an abusive working environment.

Quid Pro Quo Harassment — A form of unlawful harassment in which a supervisor or employer conditions a job benefit, promotion, continued employment, or favorable treatment on submission to unwanted conduct.

Sexual Harassment — Unwelcome sexual advances, requests for sexual favors, or other verbal, physical, or visual conduct of a sexual nature that affects employment decisions or creates a hostile work environment, prohibited under California FEHA.

Reasonable Accommodation — A modification or adjustment to a job, work environment, or the way work is performed that enables a qualified employee with a disability, medical condition, or religious practice to perform the essential functions of the position.

Interactive Process — A timely, good-faith dialogue between an employer and employee required under California law when an employee requests reasonable accommodation for a disability, medical condition, or religious practice.

Failure to Accommodate — An employer’s unlawful refusal or failure to provide a reasonable accommodation to an employee with a qualifying disability or medical condition, without demonstrating that the accommodation would cause undue hardship.

Pregnancy Discrimination — Adverse employment treatment of an employee based on pregnancy, childbirth, or related medical conditions, prohibited under California FEHA and the Pregnancy Disability Leave law.

Age Discrimination — Adverse employment treatment of an employee who is forty years of age or older based on age, prohibited under California FEHA and the federal Age Discrimination in Employment Act.

Disability Discrimination — Adverse employment treatment of an employee based on a physical or mental disability, medical condition, or perceived disability, prohibited under California FEHA, which provides broader protections than the federal Americans with Disabilities Act.

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Retaliation and Whistleblower Protection

Retaliation — An adverse employment action taken by an employer against an employee because the employee engaged in protected activity, such as reporting unlawful conduct, filing a complaint, requesting accommodation, or participating in an investigation.

Whistleblower — An employee who reports suspected violations of law, government regulations, or public policy to an employer, a government agency, or another authority, and who is protected from retaliation under California Labor Code Section 1102.5 and other laws.

Whistleblower Retaliation — Adverse employment action taken against an employee because the employee disclosed or threatened to disclose suspected unlawful conduct, refused to participate in illegal activity, or cooperated with a government investigation.

California Labor Code Section 1102.5 — California’s primary whistleblower protection statute, which prohibits employers from retaliating against employees who disclose suspected violations of state, federal, or local law, or who refuse to participate in activity they reasonably believe is unlawful.

Constructive Discharge — A situation in which an employer makes working conditions so intolerable that a reasonable employee would feel compelled to resign, treated under California law as a termination for purposes of wrongful discharge claims.

Pretextual Reason — A false or misleading explanation offered by an employer to justify an adverse employment action, used to conceal an unlawful motive such as discrimination or retaliation.

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Wrongful Termination

Wrongful Termination — A termination that violates California law, including firings motivated by discrimination, retaliation, whistleblowing, protected leave, wage complaints, workplace safety complaints, or other protected conduct.

Wrongful Discharge in Violation of Public Policy — A California common law claim that allows an employee to sue for termination that violates a fundamental public policy expressed in a constitutional provision, statute, or regulation.

WARN Act — Federal and California laws that require covered employers to provide advance written notice before qualifying mass layoffs, plant closures, or relocations, with California generally requiring at least sixty days of notice.

Reduction in Force (RIF) — An employer’s elimination of positions, often cited as the reason for termination, which does not shield an employer from liability if the selection of affected employees was based on discriminatory or retaliatory motives.

Severance Agreement — A contract offered by an employer at the time of termination or layoff that typically provides compensation in exchange for the employee’s release of legal claims, subject to review and negotiation under California law.

Release of Claims — A contractual provision in a severance agreement by which an employee gives up the right to pursue certain legal claims against an employer in exchange for severance pay or other consideration.

ADEA Waiver — A release of age discrimination claims under the federal Age Discrimination in Employment Act, which must meet specific requirements including a 21-day review period and a 7-day revocation period to be enforceable.

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Severance and Leave

California Family Rights Act (CFRA) — A California law that provides eligible employees up to twelve weeks of unpaid, job-protected leave per year for qualifying family and medical reasons, applying to employers with five or more employees.

Pregnancy Disability Leave (PDL) — California law that provides eligible employees up to four months of job-protected leave for disability caused by pregnancy, childbirth, or related medical conditions, separate from CFRA leave rights.

COBRA — A federal law that allows employees and their dependents to continue employer-sponsored health coverage for a limited period after termination, reduction in hours, or other qualifying events, typically at the employee’s expense.

Non-Compete Agreement — A contractual provision that restricts an employee from working for competitors or starting a competing business after leaving employment, generally unenforceable in California under Business and Professions Code Section 16600.

Non-Disparagement Clause — A contractual provision in a severance agreement that restricts an employee from making negative statements about the employer, its products, or its personnel, subject to California limitations protecting the right to disclose factual information about unlawful acts.

California Labor Code Section 925 — A California statute that restricts certain agreements requiring California employees to resolve employment claims in another state or under another state’s law, providing employees the right to void such provisions.