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California Is At-Will, But That's Not the Whole Story

California is an at-will employment state under Labor Code § 2922, meaning employment without a fixed term can be ended by either party at any time. But that baseline rule has hard statutory limits that most workers never hear about. Firing someone because of a protected characteristic violates Government Code § 12900 et seq. (FEHA); firing someone for reporting illegal conduct violates Labor Code § 1102.5; and firing someone for taking protected family or medical leave violates Government Code § 12945.2. If your situation fits any of these exceptions, at-will employment does not shield your employer.

The practical implication: most employment claims do not arise from the absence of a contract. They arise from these statutory and common-law exceptions. A Beverly Hills worker who was fired, demoted, or passed over because of who they are, what they reported, or what leave they took may have a viable claim regardless of what their offer letter says.

 

The Public Policy Exception: When a Firing Violates the Law Even Without a Statute

Beyond the named statutes, California courts recognize a common-law wrongful termination doctrine: a termination is actionable if it violates a fundamental public policy embodied in a constitutional provision, statute, or regulation. This means an employer who fires a worker for serving on jury duty, refusing to commit perjury, or exercising a legal right can face liability even if no single statute explicitly names that reason as prohibited. The public policy exception fills gaps that written statutes do not cover and is a distinct cause of action that an Beverly Hills employment attorney protecting employee rights evaluates alongside statutory claims.

What California Law Protects You From: FEHA and the Protected Classes

FEHA (Gov. Code § 12900 et seq.) is California’s primary anti-discrimination statute. It prohibits adverse employment actions based on any of the following characteristics:

  • Race, color, national origin, and ancestry
  • Religion
  • Physical or mental disability and medical condition
  • Genetic information
  • Marital status
  • Sex, gender, gender identity, and gender expression
  • Age (for individuals 40 and older)
  • Sexual orientation
  • Military or veteran status
  • Pregnancy and related conditions (addressed separately below)

 

Adverse employment actions under FEHA include termination, demotion, failure to hire, harassment, and constructive discharge. If any of these characteristics was a substantial motivating reason for the employer’s decision, the employer may be liable regardless of whether it also had other business reasons. Workers who believe their disability was a factor in an adverse action should also review our resources on disability discrimination under California law.

 

Pregnancy, Medical Leave, and CFRA: A Separate Layer of Protection

Government Code § 12945.2, which covers the California Family Rights Act (CFRA) and the Pregnant Workers Fairness Act, creates a distinct retaliation protection for employees who are pregnant, have recently given birth, or take qualifying family or medical leave. This protection operates independently of FEHA’s general anti-discrimination provisions.

Consider this illustrative example: a marketing coordinator at a Beverly Hills production company takes 10 weeks of pregnancy disability leave. When she returns, she is told her role has been eliminated and she is offered a lower-level position at reduced pay. Under Gov. Code § 12945.2, the employer bears the burden of demonstrating the elimination was entirely unrelated to the leave. If that burden is not met, the reassignment and pay reduction are actionable as retaliation. This is one of the most common fact patterns in the Beverly Hills area, where entertainment and media companies frequently restructure around employee absences.

Whistleblower and Retaliation Claims Under Labor Code § 1102.5

Labor Code § 1102.5 protects employees from retaliation for three distinct actions: reporting conduct they reasonably believe is illegal, refusing to participate in a wrongful act, and cooperating with a government investigation. The employer does not need to have actually violated the law. The employee’s reasonable belief that a violation occurred is sufficient to trigger the protection. The act of retaliation is the violation.

A frequent employer defense in these cases is that the termination was a business decision unrelated to the report. California courts have consistently required employers to articulate a legitimate, nonretaliatory reason and then permitted employees to show that reason was pretextual. Workers in Beverly Hills industries including financial services, healthcare, and entertainment regularly encounter this pattern when raising internal compliance concerns.

Wage and Hour Violations: What Beverly Hills Workers Are Owed in 2025

California’s wage and hour rules are among the most specific in the country. As of January 1, 2025, the confirmed figures from the California Department of Industrial Relations are:

 

Category

2025 Threshold

Authority

 

Minimum wage (25 or fewer employees)

$16.50/hr

Cal. DIR

Minimum wage (26 or more employees)

$16.50/hr

Cal. DIR

Exempt-employee salary floor

$68,640/year

Cal. DIR

Computer software OT exemption floor

$56.97/hr or $9,888.13/month

Cal. DIR

Licensed physicians/surgeons OT exemption floor

$103.75/hr

Cal. DIR

 

Overtime is governed by Labor Code § 510: non-exempt employees must receive 1.5 times their regular rate after eight hours in a day or 40 hours in a week, and double time after 12 hours in a single day or for the first eight hours on the seventh consecutive day of a workweek.

Workers in Beverly Hills entertainment, tech, and healthcare sectors are frequently misclassified as exempt, which strips them of overtime protections. Many janitorial and service workers face similar misclassification issues; our article on janitorial worker employment rights addresses how these protections apply to lower-wage service employees.

California’s wage and hour rules are among the most specific in the country. As of January 1, 2025, the confirmed figures from the California Department of Industrial Relations are:

 

Category

2025 Threshold

Authority

 

Minimum wage (25 or fewer employees)

$16.50/hr

Cal. DIR

Minimum wage (26 or more employees)

$17.50/hr

Cal. DIR

Exempt-employee salary floor

$68,640/year

Cal. DIR

Computer software OT exemption floor

$56.97/hr or $9,888.13/month

Cal. DIR

Licensed physicians/surgeons OT exemption floor

$103.75/hr

Cal. DIR

 

Overtime is governed by Labor Code § 510:non-exempt employees must receive 1.5 times their regular rate over eight hours in a day, over 40 hours in a week, and for the first eight hours worked on the seventh consecutive day of a workweek. Double time applies over 12 hours in a single day, and for hours worked over eight on the seventh consecutive day — the first eight hours on the seventh day are paid at 1.5x, not double time.

Workers in Beverly Hills entertainment, tech, and healthcare sectors are frequently misclassified as exempt, which strips them of overtime protections. Many janitorial and service workers face similar misclassification issues; our article on janitorial worker employment rights addresses how these protections apply to lower-wage service employees.

 

When Your Employment Lawyer Evaluates a Wage Claim: What the Numbers Mean

The exempt-salary floor is a hard threshold, not a guideline. An employee earning $65,000 per year is below the $68,640 floor and may be legally entitled to overtime pay regardless of their job title or whether they perform some managerial functions. Job titles like “assistant manager” or “team lead” do not determine exempt status; the salary floor and the employee’s actual duties do. If you have been classified as exempt but earn less than $68,640 annually, that classification likely fails on its face.

The exempt-salary floor is a hard threshold, not a guideline. An employee earning $65,000 per year is below the $68,640 floor and may be legally entitled to overtime pay regardless of their job title or whether they perform some managerial functions. Job titles like “assistant manager” or “team lead” do not determine exempt status; the salary floor and the employee’s actual duties do. If you have been classified as exempt but earn less than $68,640 annually, that classification likely fails on its face.

PAGA Claims After the 2024 Reform: What Changed for Beverly Hills Workers

The Private Attorneys General Act (Labor Code § 2699) allows workers to pursue civil penalties for Labor Code violations on behalf of themselves and other aggrieved employees. Reform legislation effective July 1, 2024 made three significant changes:

  • Reduced baseline penalty: The civil penalty for most wage and hour violations is now $100 per employee per pay period, reduced from the prior higher amount.
  • Compliance reduction: Employers that took “all reasonable steps to comply” before receiving PAGA notice may have their penalty reduced by up to 85%, bringing it as low as $15 per employee per pay period.
  • Standing limitation: Claims are now limited to violations personally experienced by the named plaintiff. The prior practice of pursuing penalties for violations suffered by employees who were not parties to the action is no longer available.
  • Statute of limitations: PAGA claims must be filed within one year of the violation.

 

These changes reduce the leverage of large representative PAGA actions but do not eliminate individual claims. For a Beverly Hills worker whose employer has systematically underpaid overtime across a workgroup, a properly scoped PAGA claim can still produce meaningful recovery.

Deadlines That Can End Your Case Before It Starts

Missing a filing deadline terminates even a strong claim. The windows below are the ones a Beverly Hills employment lawyer reviews first in any consultation.

Claim Type

Deadline

What Starts the Clock

Authority

 

FEHA complaint with CRD

3 years

Date of the unlawful act

Gov. Code § 12960

Civil lawsuit after CRD right-to-sue letter

1 year

Date CRD issues the letter

Gov. Code § 12960

Federal EEOC charge (California, cross-filed with CRD)

300 days

Date of the alleged violation

EEOC

Federal lawsuit after EEOC right-to-sue letter

90 days

Date EEOC issues the letter

EEOC

PAGA claim

1 year

Date of the underlying violation

Labor Code § 2699

 

The 90-day window after an EEOC right-to-sue letter is the shortest and most commonly missed. Many workers receive the letter, assume they have more time, and find the federal courthouse door closed before they consult a lawyer. If you have received any correspondence from the EEOC or the California Civil Rights Department, the date on that letter is the first thing to share with an attorney.

 

Why Timing Is the First Question Every Employment Lawyer Asks

Before evaluating the strength of the underlying facts, a Beverly Hills employment lawyer must determine whether the applicable window is still open. A discrimination claim supported by strong evidence and credible witnesses is unrecoverable once the three-year CRD deadline has passed. The same is true at every stage: filing with the CRD does not automatically preserve the federal EEOC window, and receiving a right-to-sue letter starts a separate and shorter countdown. Confirming the timeline is the threshold question, not a formality.

What You Can Recover and What to Bring to a Consultation

Available remedies depend on the theory of recovery. Under FEHA, a successful plaintiff may recover back pay, front pay, compensatory damages for emotional distress, and attorney’s fees. Under Labor Code § 1102.5, retaliation victims may recover lost wages and benefits in addition to civil penalties. Wage and hour claims under Labor Code § 510 and PAGA claims under Labor Code § 2699 generate their own separate penalty structures. These categories can overlap when the same set of facts supports multiple theories.

Our team at Setareh Law Group’s Beverly Hills labor and employment practice evaluates which theories apply to a given fact pattern and which remedies are available before a case is filed.

 

Document Preservation Checklist Before You Contact an Employment Lawyer

The documents you preserve in the days immediately after an adverse employment action can determine whether your claim succeeds. Collect and secure the following before anything is deleted, lost, or returned to the employer:

  • Employment records: Offer letter, employment contract, employee handbook, any written job description, and any documentation of your job title or classification
  • Pay records: Recent pay stubs, W-2s, and any records of hours worked (timesheets, schedule apps, badge swipe logs)
  • Performance records: Written performance reviews, commendations, disciplinary write-ups, and any communications about your performance
  • Termination documentation: Termination letter, separation agreement, COBRA notice, and any written explanation of the reason for your termination
  • Relevant communications: Emails, text messages, or messages in workplace apps (Slack, Teams) that relate to your protected characteristic, complaint, or leave request. Screenshot and download these before losing system access.
  • Witnesses: Names and contact information of coworkers who observed relevant events, including any complaints you made or any comments made by supervisors
  • Complaints or reports you made: Any written internal complaint, HR report, hotline submission, or external agency filing, along with any response you received
  • Timeline: A written chronology of events with dates, while memory is fresh. Include who said what, who was present, and what happened immediately before and after each relevant event.
  • Leave records: Any medical certifications, FMLA or CFRA paperwork, or communications about a leave request if your claim involves retaliation for taking or requesting leave
  • Benefits and equity documentation: Stock option agreements, vesting schedules, commission plans, or bonus agreements if you believe you were terminated to avoid a payout

What This Means If You Were Just Fired or Treated Unfairly at Work

The most important thing to understand is that “at-will” is not a complete answer. If the reason behind your termination, demotion, or pay cut connects to who you are, what you reported, or a leave you took, California law may give you a viable claim regardless of what your employer says. The second most important thing is the clock: the deadlines above are not suggestions, and missing them is permanent. If you received any agency correspondence, note the date immediately. Gather and preserve your documents before you lose access to employer systems. Do not sign a severance agreement without having it reviewed by an attorney, because signing typically releases all claims you may not yet know you have. The sooner you consult a Beverly Hills labor and employment attorney, the more options remain open.

Frequently Asked Questions

Does California’s at-will rule mean my employer can fire me for any reason?

No. Labor Code § 2922 permits termination without cause, but not termination for an unlawful reason. Firing based on a protected characteristic under FEHA, retaliating for whistleblowing under Labor Code § 1102.5, or punishing an employee for taking protected leave under Gov. Code § 12945.2 are all actionable even in an at-will relationship.

I earn $65,000 per year and my employer calls me exempt. Do I still qualify for overtime?

Potentially yes. The exempt-employee salary floor in California is $68,640 per year as of January 1, 2025. If your annual salary falls below that threshold, the exemption may not apply regardless of your job title, and you may be owed overtime under Labor Code § 510.

How long do I have to file a discrimination complaint in California?

Under FEHA, you have three years from the date of the unlawful act to file a complaint with the California Civil Rights Department (Gov. Code § 12960). After the CRD issues a right-to-sue letter, you have one year to file a civil lawsuit. Federal EEOC charges in California must be filed within 300 days, and a federal lawsuit must be filed within 90 days of receiving the EEOC right-to-sue letter.

What changed about PAGA after July 1, 2024?

The 2024 reform reduced the baseline civil penalty to $100 per employee per pay period, allowed employers who had taken “all reasonable steps to comply” to reduce that penalty by up to 85% (to as low as $15), limited claims to violations personally experienced by the named plaintiff, and set a one-year statute of limitations (Labor Code § 2699).

What should I do first if I think I have an employment claim?

Preserve documents immediately, note any relevant dates (especially if you have received correspondence from the CRD or EEOC), and consult a Beverly Hills employment lawyer before signing any severance or separation agreement. The deadlines in the table above begin running from the date of the adverse action, not from the date you retain counsel.

Contact Setareh Law Group: If you believe your rights have been violated, contact Setareh Law Group for a consultation. Our team handles employment and labor claims throughout California, including Beverly Hills and the surrounding area. We will review the facts of your situation, identify which deadlines apply, and explain your options. We do not guarantee outcomes or case values, but we are committed to giving you an honest assessment of where you stand.

Contact us today:

📞 Phone: 310-888-7771

✉️ Email: help@setarehlaw.com

🌐 Address: 420 N Camden Dr, Beverly Hills CA, 90210

Disclaimer: This article is general legal information provided for educational purposes only. It is not legal advice and does not create an attorney-client relationship. Every employment situation involves unique facts, and the law changes. Do not rely on this content as a substitute for consultation with a licensed California employment attorney about your specific circumstances.

 

Sources and Additional Resources

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