In California, the terms “laid off” and “terminated” both refer to the end of an employment relationship. However, they can have different implications. While they have similar outcomes, understanding the distinction between these situations—especially regarding severance and unemployment benefits—can be crucial. Contact us today to speak with an experienced Los Angeles wrongful termination attorney!
A Look at Employment Termination in California
If you’ve recently been let go in California, you may wonder, “What is the difference between being laid off and terminated?” This distinction matters for issues like your final paycheck, eligibility for unemployment benefits, and how the Department of Labor or your company’s human resources department may classify your case. Let’s review what sets them apart.
Termination
Most California employees are hired “at will,” which means employers can fire workers or eliminate positions for almost any or no reason. The exception is when an employer ends employment in violation of the employee’s contract or state or federal law. In some cases, this type of termination of employment may result from a reduction in force or even a mass layoff, which carries its own set of legal requirements.
Generally, employers will fire or “terminate” an employee based on things like poor performance, managerial disagreements, or alleged misconduct. Other times, employers terminate an employee for unconvincing or unfair reasons, but it may still be legal. And sometimes, a termination may be due to layoffs.
In California, you can get unemployment benefits if you’re laid off or fired, as long as it’s not due to misconduct. If you were fired for misconduct, your employer must prove it to deny benefits. However, if you voluntarily quit or were fired for a valid reason, you might not be eligible for benefits.
Laid Off
In contrast, employees are often let go due to factors beyond the employer’s control. This most commonly occurs out of necessity when the company restructures, downsizes, experiences a reduction in force, or goes out of business. Another difference is that these separations are usually unrelated to the employee’s performance or how the employer categorizes their work. For some, a layoff may be temporary, while for others, it represents a permanent termination of employment that requires a shift into a new job search.
In California, applicable companies that employ 100 or more employees forced to lay off any workforce must comply with California Labor Code requirements and give employees proper notice under the Worker Adjustment and Retraining Notification Act (WARN). In some cases, laid-off employees may also collect unemployment insurance, severance pay, and continued healthcare coverage under the Consolidated Omnibus Budget Reconciliation Act (COBRA).
Whether you were terminated or laid off, if you feel it was for unlawful reasons, you have rights. If this is the case, discuss your claim with an experienced California wrongful termination attorney as soon as possible, especially before signing a severance agreement or other documents. An experienced employment lawyer can review your claim, explain your options, and help you safeguard your employment and unemployment benefits.
Bibiyan Law Group: Your Advocate for Justice
If you feel your employer let you go from your job unlawfully, Bibiyan Law Group can help you hold your employer accountable. As employment law advocates, we’ve won millions of dollars for clients fighting unlawful employment practices, garnering a perfect Avvo rating and a lauded place in the Multi-Million Dollar Advocates Forum. As your employment law advocate, you can expect compassionate support, fierce advocacy, and legal know-how you can trust. Contact us at 310-438-5555 to book a free phone consultation. We are experienced negotiators ready to battle for the resolution you’re entitled to.