Articles Posted in Wrongful Termination

For California employees seeking job security, the prospect of an unexpected termination, especially if done so without cause, understandably produces fear and anxiety. In instances where an employee is terminated soon after a long-distance, interstate, or even international transfer, the consequences of the termination can be extreme. The California Court of Appeals recently heard an appeal in a case filed by a former employee of the defendant, who was terminated without cause less than one year after he was transferred from California to Singapore, a small Southeast Asian nation.

According to the facts discussed in the appellate opinion, the plaintiff was offered an executive position with the defendant, a software company, in May 2015. While the defendant conducted business in California, the position offered to the plaintiff required relocation to Singapore. The plaintiff accepted the offer and relocation package on May 22, 2015. The offer contained provisions detailing the circumstances under which the plaintiff’s employment could be terminated.

Nearly one year after the plaintiff accepted the offer and moved to Singapore to assume the new position, his employment was terminated. The defendant notified the plaintiff of the termination one month before his departure, and otherwise complied with the conditions in the employment contract/relocation agreement. The letter notifying the plaintiff of his termination did not note any cause or reason for the decision. The plaintiff filed multiple claims against the defendant in California court, alleging that the defendant committed fraud in misrepresenting the details surrounding the job and relocation prior to the plaintiff’s acceptance of the offer. Additionally, the plaintiff alleged that he was unlawfully terminated in violation of state law and his employment contract.

Recently, a national news source reported a finding by the National Labor Relations Board (NLRB) regarding Tesla’s illegal termination of a California employee. The findings affirmed a 2019 ruling that found that Tesla illegally threatened workers if they engaged in union activities. The employee, in this case, was organizing union participation by distributing pamphlets in the company’s California parking lot. Tesla fired the employee, attributing the termination to the employee’s posting of employees’ profiles on social media. About seven months after the termination, Elon Musk tweeted a statement that said, “why pay union dues & give up stock options for nothing?”

An NLRB administrative judge found that the termination was in retaliation for the employee engaging in union activities. Further, the judge ruled that the company engaged in employment law violations when it issued warnings to another worker for sending screenshots and sending them to the employee. Finally, the board ruled that Tesla’s confidentiality agreement contains an illegal provision that prohibits employees from speaking with the media without the company’s permission. The NLRB ruling requires Tesla to amend the provision in their confidentiality documents. Tesla has not issued a comment on the recent Board findings.

Certain federal and state laws protect California employees in organizing and joining a union. Unions are a critical way for employees to ensure that their employer negotiates in good faith over terms and conditions of employment, including work hours, and compensation. The National Labor Relations Act (NLRA) protects certain California employees from engaging in unionizing activities. Some protected activities include allowing employees to self-organize, form, join, or assist labor organizations, engage in collective bargaining agreements, and other related activities.

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