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End-of-Year Layoffs in California: What’s Legal and What’s Not?

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For countless workers across California, the end of the year often brings dread instead of joy. This time of the year, workers face the cold, hard truth of a layoff. It’s a gut punch, and it can feel like a devastating act of betrayal. If you’ve been laid off as the year winds down, you're probably asking yourself one thing: Is this even legal?

While many layoffs are legal, many others are not. Employers often use the "end-of-year" or "restructuring" excuse to mask illegal terminations. Don’t let them get away with it. We are committed to fighting for employees who are wronged by their employers, especially during such a vulnerable time.

The Truth About At-Will Employment

California is an at-will employment state. This means, in most cases, an employer can fire an employee at any time, for any reason, or no reason at all, as long as it isn't an illegal reason. Likewise, you can quit at any time.

But let's be clear: "at-will" doesn't give your employer a free pass to do whatever they want. It absolutely does not give them the right to fire you for discriminatory or retaliatory reasons. Don't let them hide behind this concept. We see it every day, and we are ready to expose their dirty tactics.

When a Layoff is Illegal: The Red Flags 

A layoff at the end of the year is illegal if it's based on:

  • Discrimination: You cannot be laid off because of your age, race, gender, sexual orientation, disability, religion, or any other protected characteristic. If you're a senior employee and your company suddenly lets you go while keeping younger, less-experienced staff, that's a massive red flag for age discrimination. Similarly, if your company lays off a disproportionate number of female, pregnant, or minority employees, something is seriously wrong.

  • Retaliation: Did you recently report workplace harassment, an unsafe work environment, or wage theft? Did you file a workers’ compensation claim or take FMLA leave? If your layoff comes suspiciously soon after you engaged in any of these protected activities, it’s not a coincidence—it's retaliation, and it's illegal. Employers who think they can silence you by firing you are about to learn a very painful lesson.

  • Breach of Contract: While many employees are at-will, some have employment contracts that outline specific terms for termination. If your employer lays you off in violation of the terms of your contract, they have broken the law. This is a clear case of wrongful termination.


Know Your Rights. Don’t Let Them Get Away With It.

Being laid off at the end of the year is more than just bad timing; it’s a direct attack on your livelihood and your ability to provide for your family during the holidays. It’s a disgraceful move by companies that think they can discard loyal workers without consequence.

Don’t sit back and let them win. If you’ve been laid off and suspect foul play, it's time to take action. You deserve justice, and we are here to fight for it. The attorneys at Southern California Labor Law Group PC are ready to stand with you and hold your former employer accountable for their illegal actions.

Call us today at (424) 306-1515 for a free consultation. Let's make sure you get the justice you deserve.