In California, the default employment relationship is presumed to be “at will.” This means that either the employer or the employee can terminate the relationship at any time, with or without cause, and with or without notice, unless there is a contract or other legal exception that applies. For example, an employee could resign for a better opportunity without giving two weeks’ notice, and an employer could terminate an employee without providing a specific reason, as long as the termination isn’t based on illegal discrimination or retaliation. This foundational principle shapes the dynamics between employers and employees in the state.
This system offers flexibility for both employers and employees to adapt to changing circumstances. Employers can quickly adjust their workforce to meet business needs, while employees have the freedom to pursue other opportunities without being bound to a specific employer. Historically, this doctrine was the norm across the United States, reflecting a laissez-faire approach to labor relations. However, over time, various legal protections and exceptions have been established to mitigate potential abuses and ensure fair treatment of employees. This framework strikes a balance between employer prerogatives and employee rights.
