Glossary of California Employment Law Terms
Employment law has its own vocabulary. The terms appear in statutes, in court filings, in settlement agreements, and throughout this series. This glossary defines the ones that matter most — in plain language, with enough context to understand not just what the term means but why it matters.
Adverse employment action. Any action by the employer that materially affects the terms, conditions, or privileges of employment. Includes termination, demotion, suspension, transfer to a less desirable position, significant reduction in pay or hours, denial of promotion, and any other action that would deter a reasonable employee from exercising a protected right. An adverse action is the “what happened” element of a discrimination or retaliation claim.
At-will employment. The default employment relationship in California: either party can end the relationship at any time, for any reason or no reason, without advance notice. The at-will rule is subject to extensive exceptions — an employer cannot terminate for a discriminatory, retaliatory, or otherwise unlawful reason. See Labor Code section 2922.
Burden-shifting. The analytical framework used in most discrimination and retaliation cases. The employee establishes a prima facie case; the employer offers a legitimate, non-discriminatory reason; the employee proves the stated reason is pretextual. The framework comes from McDonnell Douglas Corp. v. Green (1973) and has been adopted by California courts for FEHA claims.
CFRA (California Family Rights Act). Government Code section 12945.2. Provides eligible employees with up to twelve weeks of unpaid, job-protected leave for their own serious health condition, to care for a family member with a serious health condition, or to bond with a new child. Applies to employers with five or more employees.
Comparator. An employee in a similar position — same supervisor, same job, same performance level — who was treated differently from the plaintiff. Comparator evidence is used to show that the employer’s stated reason for the adverse action was pretextual: if a comparator with a worse record was retained while the plaintiff was terminated, the difference in treatment requires an explanation.
Compensatory damages. Damages that compensate the employee for actual losses: lost wages (back pay and front pay), lost benefits, out-of-pocket expenses, and emotional distress. Compensatory damages aim to restore the employee to the position they would have occupied but for the employer’s unlawful conduct.
Constructive termination. A resignation that the law treats as a termination because the employer created working conditions so intolerable that a reasonable person would have felt compelled to resign. Requires both intolerable conditions and an unlawful motive (discrimination, retaliation, or violation of public policy).
Continuing violation doctrine. A doctrine that extends the statute of limitations for ongoing patterns of unlawful conduct. When harassment or discrimination is part of a continuing pattern, the limitations period is measured from the most recent act, and earlier acts may be included in the claim. See Richards v. CH2M Hill (2001).
CRD (Civil Rights Department). The California state agency (formerly the DFEH) responsible for enforcing FEHA. Employees must file a complaint with the CRD before suing under FEHA. The CRD can investigate, mediate, and litigate employment discrimination claims.
Disability (under FEHA). A physical or mental condition that “limits” a major life activity. California’s definition is broader than the federal ADA’s — no “substantially limits” qualifier, no duration requirement, and perceived disability is protected. Government Code section 12926.
Discovery. The phase of litigation during which both sides exchange information — documents, written answers to questions (interrogatories), and sworn testimony (depositions). Discovery is where the evidence that proves most employment cases is obtained.
EEOC (Equal Employment Opportunity Commission). The federal agency responsible for enforcing Title VII, the ADA, the ADEA, and other federal anti-discrimination statutes. An EEOC charge must be filed within 300 days of the alleged violation to preserve federal claims.
EPLI (Employment Practices Liability Insurance). Insurance coverage that protects employers against employment claims. EPLI typically covers defense costs, settlements, and judgments for discrimination, harassment, and wrongful termination claims. It usually does not cover wage and hour claims or punitive damages.
FEHA (Fair Employment and Housing Act). Government Code sections 12900–12996. California’s primary anti-discrimination statute, prohibiting employment discrimination, harassment, and retaliation based on protected characteristics. Applies to employers with five or more employees (one or more for harassment). Broader than federal Title VII in coverage, protected characteristics, damages, and filing deadlines.
Interactive process. The good-faith dialogue between employer and employee required by FEHA when an employee requests a reasonable accommodation for a disability. The employer must explore possible accommodations and engage with the employee’s needs. Failure to engage in the interactive process is itself a violation.
Managing agent. An employee with substantial discretionary authority over corporate policy decisions. Punitive damages require a showing that a managing agent authorized or ratified the unlawful conduct. Not every supervisor qualifies — the person must have authority over decisions that determine company policy.
Mitigation. The employee’s duty to make reasonable efforts to find comparable employment after a termination. The employer may argue that damages should be reduced by the amount the employee could have earned with reasonable effort. The burden of proving failure to mitigate is on the employer.
PAGA (Private Attorneys General Act). Labor Code sections 2698–2699.8 authorize an aggrieved employee to seek civil penalties on the state’s behalf. For actions governed by the 2024 reform, the ordinary allocation is 65 percent to the state and 35 percent to aggrieved employees; older actions retain the former 75/25 split. An agreement may require arbitration of the employee’s individual component, but a wholesale waiver of representative PAGA enforcement is unenforceable. See Adolph v. Uber Technologies, Inc. (2023) 14 Cal.5th 1104 and Labor Code section 2699, subdivisions (c), (m), and (v).
PDL (Pregnancy Disability Leave). Government Code section 12945. Provides up to four months of leave for employees disabled by pregnancy, childbirth, or a related medical condition. Applies to employers with five or more employees, with no minimum tenure requirement.
Pretext. A stated reason for an adverse action that is not the real reason. Proving pretext — showing that the employer’s explanation does not hold up — is how most discrimination and retaliation cases are won. Evidence of pretext includes: shifting explanations, inconsistency with the documentary record, comparator treatment, and temporal proximity to protected activity.
Prima facie case. The minimum showing the employee must make to establish a presumption of discrimination or retaliation. Typically: membership in a protected class, qualification for the position, an adverse employment action, and circumstances suggesting a discriminatory or retaliatory motive. Once established, the burden shifts to the employer to articulate a legitimate reason.
Protected activity. Conduct that the law protects from employer retaliation. Includes: filing a discrimination or harassment complaint; reporting illegal activity (whistleblowing); requesting a reasonable accommodation; taking protected leave; filing a wage claim; discussing wages; participating in an investigation; and exercising virtually any right the Labor Code provides.
Protected characteristic. A personal attribute that FEHA prohibits employers from using as a basis for employment decisions. Includes: race, color, national origin, ancestry, sex, gender, gender identity, gender expression, sexual orientation, age (40+), disability, medical condition, genetic information, marital status, military and veteran status, religion, pregnancy, and status as a victim of domestic violence, sexual assault, or stalking.
Punitive damages. Damages designed to punish the employer for conduct that was malicious, oppressive, or fraudulent, and to deter similar conduct. Available under Civil Code section 3294 when a managing agent authorized or ratified the unlawful conduct. No cap under California law.
Reasonable accommodation. A modification to the job, the workplace, or the work schedule that enables an employee with a disability to perform the essential functions of the position. Examples: modified schedule, ergonomic equipment, remote work, reassignment, additional leave. The employer must provide the accommodation unless it would impose an undue hardship.
Right-to-sue notice. A notice issued by the CRD authorizing the employee to file a lawsuit in court under FEHA. The employee has one year from the date of the notice to file suit. The notice can be requested immediately upon filing the CRD complaint.
Statute of limitations. The deadline for filing a claim. Varies by claim type: three years for FEHA (CRD complaint), two years for Tameny claims, three years for most wage claims, one year for PAGA, 300 days for EEOC charges. Missing the deadline generally forecloses the claim, subject to tolling and equitable exceptions.
Substantial motivating factor. The causation standard for FEHA discrimination and retaliation claims. The protected characteristic or activity must have been a “substantial motivating factor” in the adverse action — not the sole factor, not the primary factor, but a meaningful contributing factor. More plaintiff-friendly than the federal “but-for” standard.
Tameny claim. A common-law tort claim for wrongful termination in violation of public policy, named for Tameny v. Atlantic Richfield Co. (1980). Arises when an employee is fired for refusing to violate the law, for performing a legal duty, for exercising a legal right, or for reporting a legal violation. Provides access to compensatory and punitive damages.
Unconscionability. A contract defense used to challenge unfair arbitration agreements. Has two components: procedural (how the agreement was formed — was it take-it-or-leave-it?) and substantive (what the agreement says — are the terms one-sided?). Analyzed on a sliding scale: more procedural unconscionability requires less substantive, and vice versa.
Waiting time penalties. Penalties imposed under Labor Code section 203 when an employer fails to pay all wages owed upon termination. One day’s wages for each day of delay, up to a maximum of thirty days. Accrue automatically without requiring proof of specific harm.
This glossary defines the terms that appear most frequently in California employment law — and throughout this series. Each term is a piece of the framework. Understanding the vocabulary is the first step in understanding your rights.
This article is general information about California law and is not legal advice. Every situation turns on its particular facts.