What Every Employer Needs to Know About California Termination Compliance

Terminations are never easy, especially when they're tied to performance. But sometimes they’re necessary—and when handled with care, transparency, and compliance, they can be the best decision for both the company and the employee. Let’s walk through some common questions we get from clients about how to handle performance-based terminations thoughtfully and lawfully.

Do I need documentation of performance issues before terminating?

While not required by law, having documentation is a smart move. Documenting performance issues (missed deadlines, quality issues, communication breakdowns, etc.) helps show a clear pattern and timeline of concerns. It also gives the employee a chance to improve and is a wise measure in protecting your business from claims of unlawful termination. At the very least, ensure the employee has been made aware of the concerns, even if you haven’t issued a formal write-up.

I’m ready to terminate an underperformer, but I haven’t addressed it before. What now?

This is a common situation. If you’re planning to terminate for performance, but the employee hasn’t been clearly informed of expectations or warned that they’re falling short, it’s usually best to pause. Instead, give them some structured feedback and document that conversation. This doesn’t mean you must keep the employee indefinitely. Consider giving them 30 to 60 days to improve with clear goals in place. If there’s no progress, you’ll have a more solid foundation to move forward confidently.

Can I terminate someone because they don’t “fit our culture”?

Culture fit can be a tricky term. If the issues are related to behavior, communication style, or how someone engages with the team, these can be valid—but be cautious. You’ll want to clearly connect those issues to job performance or team dynamics, and again, documenting these observations helps. Just be sure “culture fit” doesn’t mask bias or discrimination.

Why can’t I terminate “at will” without giving a reason?

It’s true that most California employees are employed “at will,” meaning they or the employer can end the relationship at any time, with or without cause, or prior notice. But that doesn’t mean terminating without a reason is risk-free. Providing a legitimate, non-discriminatory documented reason helps defend against claims of discrimination or retaliation. Courts and government agencies often look at whether a reason was given—and if not, that can raise red flags.

Does an employee need to be present to be terminated?

Ideally, yes—it’s more respectful and allows for a two-way conversation. But sometimes logistics or behavior make it necessary to conduct the termination by phone or in writing. If you do it remotely, make sure it’s still handled professionally and with empathy, and that the employee receives their final pay according to state-required timelines. Document the conversation thoroughly.

Need help preparing for a termination conversation or documenting performance issues the right way? Our HR experts are here to help you handle it with care and compliance.