What Are the Proper Steps to Fire Someone in California?

Terminating an employee in California requires following legal guidelines, maintaining professionalism, and ensuring proper documentation. This guide outlines lawful termination reasons, key procedural steps, and best practices to reduce legal and financial risks.

By Brad Nakase, Attorney

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Table of Contents

1. How to fire an employee in California

2. Reasons for firing an employee

3. Ten-Step Process for Firing an Employee

4. When you fire an employee, how much money do you lose?

5. Guidelines for Terminating an Employee

6. Conclusion

How to fire an employee in California

Even for seasoned HR experts, there is one difficult task: how to terminate an employee’s employment in a manner that is both professional and compassionate. It calls for an expert level of understanding of employment rules and regulations in addition to superior communication, EQ, conflict resolution, and crisis management abilities.

Human resources experts may also need to lend a hand to managers as they face the difficult task of firing an employee. An overwhelming majority of people, around 71%, say they were uneasy throughout the firing procedure.

It gets easier to fire people, doesn’t it? Most likely not. The process can be made more equitable and less stressful with the correct strategies, though.

Reasons for firing an employee

Verify that your decision to terminate an employee is lawful and properly recorded in accordance with your company’s policy on termination and applicable employment laws before taking any action. The following are examples of typical legal grounds that may justify dismissal:

Subpar work

Workers who fail to meet expectations time and time again despite ample opportunities for growth, assistance, and constructive criticism may not be the best match for the position. The communication and documentation of poor performance must be thorough.

An employee’s repeated failure to meet monthly quotas may constitute grounds for termination, as an example. Over six months after receiving extensive training, they are still not performing up to par.

Sexual harassment

Violations of sexual harassment are grave and may result in swift dismissal from employment. If human resources determines that an employee has committed misconduct, they have the right to terminate their employment.

To illustrate the point, a company with a zero-tolerance policy could terminate a manager’s employment if they were to make sexual advances toward subordinates.

Cheating or deceit

Companies, their customers, and their reputations are all vulnerable to the financial and reputational damage that can result from theft and other forms of fraud.

An example would be a hedge fund manager who has a history of client money embezzlement. Not only are these reasons to fire an employee, but they can also land them in court.

Violations of safety protocols

When employees continue to disregard safety protocols, despite multiple warnings, it can endanger not only themselves but also their coworkers and the company as a whole. Keep detailed records of all infractions and the disciplinary actions taken in response.

Consider a warehouse worker who has recently been involved in two accidents caused by careless forklift operation, injuring themselves and a colleague.

Concerns with attendance

Team morale takes a hit when employees are chronically tardy or miss work without reasonable explanation. It’s wise to talk to the worker about it to find out if there’s a good explanation. If none is discovered, they ought to be issued warnings in writing and verbally.

Take this scenario: for the last six months, a project manager has a history of chronic tardiness, which has severely impacted several crucial projects. Nothing has changed despite three written warnings.

Abuse of substances

It is a major offense to use drugs or alcohol on the job or to have a problem with substance abuse that impacts performance or safety. Compassionate actions include offering support, such as making treatment options available. A few statutes mandate it, such as the Americans with Disabilities Act (ADA), which classifies drug misuse as a handicap.

A teacher’s refusal to get help for an alcohol problem, for instance, could lead to their dismissal from the school because their actions endanger the students.

Acts of disrespect

Problems can arise when employees act insubordinately, show contempt for authority, or disregard company policies.

As an example of insubordination and a major security risk, consider an IT manager who willfully ignores security protocols.

Keep in mind that “at-will” employment is legal in every state except Montana. A company is free to fire workers for whatever reason they see fit. Nevertheless, it is against the law to fire an employee for reasons such as:

It is absolutely forbidden to treat someone differently because of their age, handicap, gender, sexual orientation, race, ethnicity, or religion. It may result in legal action and financial penalties if proven.
It is against the law to punish an employee for coming forward with information about unlawful business practices, security breaches, harassment, or discrimination.
The Family and Medical Leave Act (FMLA) and similar statutes make it illegal to fire an employee for taking a leave of absence for a qualified medical or parental reason.
It is a violation of the National Labor Relations Act to fire an employee just because they engaged in union activities, as it is their legal right to do so.

Ten-Step Process for Firing an Employee

If you want to fire an employee, how can you do it politely and professionally? Do things in a systematic way, following a process like these important steps:

Step 1: Gather all required paperwork

Thoroughly examine every relevant record that substantiates the grounds for dismissal, including but not limited to, negative performance evaluations, caution letters, and disciplinary measures.

Be sure you have good grounds to fire the employee and the proper paperwork by reviewing your company’s termination policy.

Write a letter to terminate employment that specifies the date of termination, the amount of severance or final pay, the grounds for termination, and, if relevant, how the employee will continue to receive health coverage (COBRA).

Step 2: Think about obstacles that might raise legal concerns

Seek the advice of an attorney if you have any doubts about the legitimacy of the grounds for termination. Provide them with all of the necessary supporting documents.

Verify that the worker has not lodged any grievances as of late. Taking this measure can lessen the likelihood of allegations of illegal reprisal or discrimination.

Instead of firing an employee when legal action is possible, try reassigning them to a different task or providing them additional time to resolve the problem.

Step 3: Hold the meeting for termination

Select an environment that is private, cozy, and ideal. Someone from human resources or the employee’s management should be present as a witness.

Explain why you’re terminating employment, drawing attention to any paperwork that backs your decision. Do not drag out the conversation; instead, be succinct and to the point.

Respond compassionately to the worker’s questions and listen carefully to their concerns. While outlining the following steps in a straightforward checklist, make it plain that the decision is final.

Step 4: Supply necessary materials and assistance

Provide referrals to counseling, coaching, or employment assistance programs if the dismissal is severe enough. Offer to write a reference letter for an employee if their dismissal is not due to serious misconduct.

Step 5: Plan for what happens after the termination

Add the employee’s termination meeting notes, along with any related paperwork (such as the letter of termination, severance package, or anything else) to their employment record.

Notify the department heads, payroll, and information technology of the employee’s dismissal. If you weren’t already prepared for the termination meeting, make sure to cover the employee’s last paycheck or severance payment and any information regarding unemployment benefits (in the event that the termination isn’t due to misconduct).

Step 6: Check in with the employee

Arrange a follow-up meeting to meet with the employee again and address any remaining concerns if the termination is not immediate (for example, due to serious misconduct).

Let people know about any resources that are available to them, like counseling and job placement services. Verify that the employee has returned any company property or confidential information by reviewing the final checklist.

Step 7: Protect the privacy of the employee

Unless absolutely required, refrain from informing the employee’s coworkers or other employees about the specifics of the termination.

Keep the employee’s records and termination paperwork out of the hands of too many people.

Assuming the employee’s dismissal is not due to a major infraction or misconduct, you should respond professionally to any requests for references.

Step 8: Get ready for the final day of work

Before the employee leaves, make sure they have no access to company computers or security systems and that they return all company property.

Get someone to discreetly and politely accompany the employee as they leave.

Sign off on all remaining paperwork, making sure to include the end date, time of termination, and details of any final tasks or other information needed for the transition.

Step 9: Review the separation process one last time

Gather the manager and any affected team members for a meeting to discuss the termination’s impact on workflows, morale, and anything else that may have arisen.

Find out where you can make changes to important HR procedures like payroll, communication, or any of the others by conducting an internal HR review.

HR advice

It might be helpful to conduct a brief exit interview with the fired worker. Providing the employee with a chance to voice any concerns or offer suggestions during the termination process could yield useful feedback. Keep in mind that this is an optional offer and that the employee should feel comfortable disclosing any information they choose.

Step 10: Talk to the appropriate employees

After an employee has formally departed the company, you should assist the manager or senior leaders in communicating the employee’s termination.

Get everyone in the company together for a meeting to discuss the termination and answer questions honestly if there was major misconduct involved.

While each case is unique, following these guidelines will provide the framework for a professional, lawful, and courteous termination.

When you fire an employee, how much money do you lose?

The specific expenses associated with firing an employee can differ across states or regions and are case-specific. The following, however, is a rundown of possible costs:

1. Severance pay: A lump sum payment ranging from two to six weeks’ salary may be required as part of a severance package, depending on the length of time the employee has worked for your company and its policies regarding termination. You should also check the laws in your state regarding severance pay.

2. Tax rate on unemployment insurance: The employee may be eligible for unemployment benefits, which employers are responsible for paying, unless their employment is terminated due to serious misconduct. A rise in claims filed by former employees could lead to an increase in an organization’s insurance premiums.

3. Costs associated with replacing current employees and recruiting new ones: the average cost of recruiting a new employee is approximately $4,700, according to recent data from the Society of Human Resource Management (SHRM). Nevertheless, the overall expense might exceed three to four times the yearly salary of the position.

4. Legal fees: Disputes, wrongful termination lawsuits, or dealing with labor laws all require legal representation, which can quickly become expensive. This is a rough calculation of what it could cost to fire a software engineer who has worked for the same company for four years and makes $175,000 a year:

5. Salary: Assuming the usual severance package of two weeks’ pay for each year worked:

4 years x 2 weeks/year x $175,000/year = $14,000

Unemployment insurance: If we use a rate of 1.5 percent of the worker’s weekly salary:

Annual salary: $175,000 / 52 weeks = $3,365.38/week

The cost of unemployment insurance is $50.48 per week, calculated as 1.5% of $3,365.38.

While out of work for about twenty weeks: 1,009.60 ($50.48 x 20 weeks)

6. Staffing expenses: Hiring a new software engineer in this situation would likely cost about 1.5 times the yearly salary:

$175,000 x 1.5 = $262,500

The new software engineer receives an extensive onboarding program that costs $8,000 in order to minimize time to productivity.

Severance pay of $14,000 plus unemployment insurance of $1,009.60 plus hiring costs of $262,500 plus onboarding expenses of $8,000 equals $285,510.

Guidelines for Terminating an Employee

Dos

Present a compelling case for dismissal: Be sure there is sufficient evidence for termination by reviewing the employee’s performance records, including written warnings, PIPs, and disciplinary reports.
Pick the best time and location: Arrange the meeting for early in the week so the employee has time to think about the news and seek help if they need it. Support services may be unavailable at the end of the day, on Fridays, or before holidays, so it’s best to avoid firing an employee during those times. The legal protections against terminating employees on medical or parental leave should also be considered.
Termination meetings should be brief and focused: Lay out the reasons for firing an employee in a clear and concise manner. Summarize the situation without getting into a lengthy discussion and include the supporting documentation. While you address their concerns, remember that the decision is final.
Keep the element of surprise out of it: Firing an employee should never be a surprise. Make sure they’ve gotten plenty of warnings, both written and verbal. Workers need to be aware that they risk losing their jobs if they don’t start acting better. Fire employees immediately for major infractions. Failure to do so may lead to disputes in the courtroom.

Don’ts

Postpone the decision-making process: Do not postpone terminating an employee once there is sufficient grounds for termination and they are aware of their performance problems or misconduct. Staff morale, productivity, and trust in the company could all take a hit if there’s a holdup.
Terminate the employee’s employment without a witness present: Having a witness present at any termination meeting can help avoid potential legal complications. This person is usually a manager or an HR representative. Provide them with the necessary paperwork in advance of the meeting. Remember to take notes and get the witness’s signature to finalize the meeting record.
Embarrass the worker: Treating the worker with dignity is essential at all times. Avoid firing everyone at once through email or video chat if at all possible; instead, meet with each employee individually and in person. Being polite goes a long way toward keeping other team members’ spirits up and protecting your employer brand from damage.
Talk to other workers about the dismissal: Respect the employee’s right to privacy after termination. Keep the details of their dismissal from their coworkers and other employees under wraps. Doing so can help preserve your staff’s respect and keep the company’s image intact.

Conclusion

While every termination is unique, you can use these key strategies to establish a systematic process that works for you — one that is considerate, courteous, and professional in addition to being ethical and following the law. If the process of firing is handled properly, it can spare the employee and the company any harm.

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What Are the Proper Steps to Fire Someone in California?

How to fire an employee in California

Reasons for firing an employee

Ten-Step Process for Firing an Employee

When you fire an employee, how much money do you lose?

Guidelines for Terminating an Employee

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