California Employers Face 90-Day Retaliation Risk in 5-Step Termination Guidance

3 articles · Updated · California Employment Law Report · Aug 8

California employment advisers said lawful terminations now hinge on five basics: document the real reason, prepare required exit paperwork, pay all final wages on time, run the meeting carefully, and use updated severance and recordkeeping processes.
A 90-day rebuttable presumption of retaliation after certain protected activity makes contemporaneous documentation especially important, while inconsistent explanations—such as calling a for-cause firing a layoff—can undermine an employer’s defense.
Four documents should be ready at termination: the change-in-relationship notice, the EDD benefits pamphlet, the applicable COBRA or Cal-COBRA notice, and California’s HIPP notice, which advisers said employers most often miss.
Final pay is due immediately for terminations and layoffs, and errors can trigger waiting-time penalties of up to 30 days’ wages; final wages can include unused vacation, vested PTO, calculable commissions or bonuses, and unreimbursed expenses.
For workers 40 and older, federal age-claim releases require 21 days to consider and 7 days to revoke, while California also requires at least 5 business days to review severance agreements and notice of the right to consult counsel.