Termination of Employment in California

Division 3, Chapter 2, Article 4 of the California Labor Code concerns the termination of employment.0 Article 4 was originally enacted by Chapter 90 in 1937.

Labor Code Section 2920 provides that every employment is terminated by (a) Expiration of its appointed term; (b) Extinction of its subject; (c) Death of the employee; and, (d) The employee’s legal incapacity to act as such.

Section 2921 provides that every employment in which the power of the employee is not coupled with an interest in its subject is terminated by notice to the employee of either (a) The death of the employer or (b) the legal incapacity of the employer to contract.

Section 2922 provides that an employment, having no specified term, may be terminated at the will of either party on notice to the other. Employment for a specified term means an employment for a period greater than one month. Section 2923 specifies that an employee, unless the term of his or her service has expired or unless he or she has a right to discontinue it at any time without notice, is required to continue their service after notice of the death or incapacity of the employer. In addition, the successor is required to compensate the employee for such service according to the terms of the contract of employment.

Section 2924 authorizes an employment for a specified term to be terminated at any time by the employer in case of any willful breach of duty by the employee in the course of his or her employment, or in case of his or her habitual neglect of duty or continued incapacity to perform it.

Section 2925 allows an employment for a specified term to be terminated by the employee at any time in case of any willful or permanent breach of the obligations of his employer to him as an employee. Section 2926 provides that an employee who is not employed for a specified term and who is dismissed by his or her employer is entitled to compensation for services rendered up to the time of their dismissal.

Section 2927 states that an employee who is not employed for a specified term and who quits the service of his or her employer is entitled to compensation for services rendered up to the time of the quitting. Section 2928 provides that no deduction from the wages of an employee on account of coming late to work is to be made in excess of the proportionate wage which would have been earned during the time actually lost, but for a loss of time less than thirty minutes, a half hour’s wage may be deducted.

Section 2929 defines the terms “garnishment” and “wages.” In addition, employers are prohibited from discharging any employee by reason of the fact that the garnishment of their wages has been threatened. No employer may discharge any employee by reason of the fact that their wages have been subjected to garnishment for the payment of one judgment.