Employment Law Statute of Limitations in California

What is the statute of limitations for common California employment claims?

A former employee has three years to file claims for your employer’s failure to wages or overtime, four years for breach of employment contract, and three years for fraud.

In this article, our employment litigation attorney discusses the statutes of limitations for common California employment claims, including collective bargaining agreement breach and union duty breach, discrimination/harassment/retaliation, wrongful termination, Labor Code penalties, defamation, breach of oral contract, outrageous workplace conduct, failure to pay wages or overtime, fraud, and breach of written employment contract.

1. Collective Bargaining Agreement Breach and Union Duty Breach

The statutes of limitations for claims related to breaches of collective bargaining agreements and union duty breaches in California are generally governed by federal labor law, specifically the Labor Management Relations Act (LMRA). Under the LMRA, an aggrieved party has six months from the date of the alleged violation to file a claim with the National Labor Relations Board (NLRB). This administrative filing requirement is a prerequisite before an employee can pursue a lawsuit in court.

2. Discrimination/Harassment/Retaliation

Claims of discrimination, harassment, or retaliation under state law, specifically the California Fair Employment and Housing Act (FEHA), must be filed with the California Department of Fair Employment and Housing (DFEH) within one year of the alleged unlawful conduct. Alternatively, employees can pursue these claims in court within one year from the date they receive a right-to-sue letter from the DFEH, which authorizes them to sue in court.

3. Wrongful Termination

Wrongful termination claims in California have a statute of limitations of two years from the date of the alleged wrongful termination. However, if the claim is based on an alleged violation of public policy (public policy exception to at-will employment), the statute of limitations is extended to three years.

4. Labor Code Penalties

Claims related to Labor Code penalties, such as failure to provide meal and rest breaks, have a statute of limitations of three years. However, wage claims seeking unpaid wages have a statute of limitations of three years for the failure to pay regular wages and four years for the failure to pay overtime.

5. Defamation

Defamation claims in California have a statute of limitations of one year from the date of the alleged defamatory statement.

6. Breach of Oral Employment Contract

Claims based on breach of oral contracts have a statute of limitations of two years from the date of the breach.

7. Outrageous Workplace Conduct

Claims based on outrageous workplace conduct or intentional infliction of emotional distress have a statute of limitations of two years from the date of the alleged conduct.

8. Failure to Pay Wages or Overtime

As mentioned earlier, claims related to failure to pay regular wages have a statute of limitations of three years, while claims for failure to pay overtime have a statute of limitations of four years.

9. Fraud

Claims based on fraud have a statute of limitations of three years from the date the fraud was discovered or should have been discovered through reasonable diligence.

10. Breach of Written Employment Contract

Claims related to breach of written employment contracts have a statute of limitations of four years from the date of the alleged breach.

Understanding the statutes of limitations is critical for employees seeking legal redress for employment-related grievances in California. The timelines vary depending on the type of claim, and employees must act promptly to protect their rights. Legal advice and representation from experienced employment attorneys can be invaluable in navigating the complexities of California employment law and ensuring that all necessary claims are timely filed. Employers, too, must be aware of these limitations to respond appropriately to claims and protect their interests within the prescribed timeframes. Ultimately, the statutes of limitations serve as essential safeguards in the employment relationship, balancing the interests of employees and employers in resolving workplace disputes.

What are exceptions to California’s employment statute of limitations?

California’s employment statute of limitations sets the timeframe within which employees must file lawsuits to seek remedies for various workplace grievances. However, there are exceptions to these limitations that may allow for extensions or pauses in the timeline. These are discussed below.

1. Employer Defense

An employer’s defense can be a significant exception to the employment statute of limitations in California. If an employer raises a valid defense that the statute of limitations has expired, the employee’s claim may be time-barred. Employer defenses often assert that the employee failed to file their claim within the prescribed time limits, and, as a result, the claim should be dismissed.

2. Tolling Agreements

In some cases, employers and employees may enter into tolling agreements, which effectively suspend or extend the statute of limitations for a specified period. A tolling agreement is a written contract between the parties that acknowledges the potential claims, agrees to pause the running of the statute of limitations for a specific duration, and grants more time for negotiations or resolution without the need for immediate legal action.

3. Statute of Limitations Pauses or Stops

Certain events or circumstances may pause or stop the running of the statute of limitations in California. For instance:

• Legal Disabilities: If an employee is under a legal disability, such as being a minor, mentally incapacitated, or imprisoned, the statute of limitations may be tolled until the disability is lifted.
• Out-of-State Absence: If the employee is out of California for a specific period, the statute of limitations may be tolled during their absence from the state.
• Pending Administrative Proceedings: When an employee files a claim with an administrative agency like the California Department of Fair Employment and Housing (DFEH) or the Equal Employment Opportunity Commission (EEOC), the statute of limitations may be paused until the administrative process is completed.

4. Newer Bad Acts

In situations where the employer engages in continuing violations or engages in newer bad acts after the initial wrongdoing, the statute of limitations may restart for each subsequent act. In these cases, the clock begins anew for the latest wrongful act, allowing employees to bring a claim based on the most recent misconduct, even if the initial violation occurred outside the original statute of limitations.

California’s employment statute of limitations establishes a framework within which employees must file claims to seek remedies for workplace grievances. However, exceptions to these limitations offer important avenues for employees to protect their rights and ensure fair treatment in the workplace. Employer defenses, tolling agreements, and pauses or stops in the statute of limitations can extend the timeframe for employees to take legal action, particularly when certain circumstances hinder their ability to file within the specified time limits. In addition, the occurrence of newer bad acts can trigger a new statute of limitations for employees to address ongoing or repeated misconduct.

Understanding these exceptions is crucial for both employees and employers, as they navigate the complexities of California employment law and seek appropriate resolution for workplace disputes. Legal counsel can provide valuable guidance in determining whether an exception applies to a specific case, empowering employees to assert their rights and helping employers defend against claims in a timely and informed manner.