Labor Code §2922 – At-Will Employment

California Labor Code section 2922 says that a job with no specified term is “at will,” which means either you or your employer can end it at any time, with or without a reason. It is the reason employers say “California is an at-will state.” But at-will is only a starting presumption. An employer still can’t fire you for an illegal reason, and a promise of job security can replace the presumption altogether.

This page is a statute guide: what section 2922 says, who it covers, the fixed-term rules next to it, the exceptions, and the deadlines that apply when an exception fits. For a side-by-side comparison of at-will firing and wrongful termination, see our guide to wrongful termination vs. at-will employment.

What Labor Code 2922 says

Section 2922 is two sentences long, and its text has not changed since at least 1971. In plain English:

• First sentence: an employment “having no specified term” may be ended “at the will of either party on notice to the other.”
• Second sentence: employment for a specified term means employment “for a period greater than one month.”

So the statute does two jobs. It sets the default rule for most California jobs (at will), and it draws the line for when a job counts as a fixed-term job that is not at will.

By the numbersOne month

Who section 2922 covers

Section 2922 is the default rule for California employees who don’t have an agreement or other law that says otherwise. Most hourly and salaried workers hired without a set end date fall under it.

It works in both directions. You can quit an at-will job at any time, for any reason, without your employer’s permission. If you quit without notice, your final pay is due within 72 hours; if you give at least 72 hours’ notice, it is due on your last day (see Labor Code §§201–202).

Some workers usually have more protection than section 2922 gives. A union contract may require “just cause” for discipline and firing, and many public employees have civil service rules that limit when they can be let go. When those rules apply, they generally control instead of the at-will default.

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The rules, part by part

“No specified term” means at will

If you were hired without a set length of employment, the law presumes you are at will. Your employer doesn’t have to give a reason, and it doesn’t have to prove you did something wrong. The same is true for you if you want to leave.

“On notice to the other”

The statute says the job ends “on notice,” but it sets no minimum notice period. Outside an agreement that requires advance notice, an at-will job can generally end the same day. Separate laws add duties around a firing: when you are discharged, all earned and unpaid wages are due immediately (Labor Code §201), and covered employers must give 60 days’ written notice before a mass layoff, relocation or termination at a covered establishment (Labor Code §1401, Cal-WARN).

Jobs for a specified term of more than one month

A job for a set period “greater than one month,” such as a one-year contract, is not at will. Two companion sections set the rules for ending it early:

• Labor Code §2924: the employer may end a fixed-term job at any time for the employee’s “willful breach of duty” in the course of the job, “habitual neglect” of duty, or “continued incapacity” to perform it.
• Labor Code §2925: the employee can end it early in case of the employer’s “wilful or permanent breach” of its obligations to the employee.

If an employer cuts a fixed-term job short without one of those reasons, the worker may have a claim for breach of contract.

Exceptions: when at-will doesn’t protect the employer

At-will employment lets an employer fire you for a bad reason or no reason. It does not let an employer fire you for an illegal reason. There are three main exceptions.

1. A contract that limits firing

The at-will rule is only a presumption, and you and your employer can agree to something different. In Guz v. Bechtel National, Inc. (2000), the California Supreme Court said the parties “are free to define their relationship,” including the terms for ending it. That agreement can be express (an offer letter or contract saying you can be fired only for good cause) or implied from the employer’s words and conduct, such as written personnel policies promising termination only for cause, specific assurances of job security, or a consistent practice of progressive discipline.

The same decision set limits. Time on the job, even with raises and promotions, “cannot alone” create an implied promise that you are no longer at will. An at-will disclaimer in a handbook or signed acknowledgment can make an implied-contract claim harder, although the court said a disclaimer isn’t always conclusive. And the implied covenant of good faith and fair dealing can’t add job security that the agreement itself doesn’t contain.

2. Firing that violates public policy

In Tameny v. Atlantic Richfield Co. (1980), the California Supreme Court held that an employer’s authority over an employee “does not include the right to demand that the employee commit a criminal act,” and that an employee fired for refusing can sue in tort for wrongful discharge. The employee in that case alleged he was fired for refusing to take part in illegal price-fixing. Today, a firing for refusing to break the law, for reporting violations, or for exercising a right a statute protects is commonly called wrongful termination in violation of public policy.

3. Statutes that ban specific reasons for firing

Many California statutes make particular reasons for firing illegal, whatever section 2922 says:

• Discrimination: race, sex, disability, age, pregnancy and other protected traits, and retaliation for opposing discrimination (Government Code §12940).
• Whistleblowing: reporting a suspected violation of law or refusing to break the law (Labor Code §1102.5).
• Wage complaints and other Labor Code rights: complaining about unpaid wages or using rights the Labor Commissioner enforces (Labor Code §98.6).
• Safety complaints: reporting unsafe conditions (Labor Code §6310).
• Talking about pay: discussing or disclosing your wages (Labor Code §§232–232.5).
• Lawful off-duty conduct: lawful conduct away from work (Labor Code §96(k)).
• Workers’ comp claims: filing a claim or being injured on the job (Labor Code §132a).
• Protected leave: taking family or medical leave you are entitled to (see FMLA and CFRA leave rights).

If you were pressured into quitting through intolerable conditions, the law may treat it as a firing; see constructive discharge.

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Penalties and remedies

Section 2922 has no penalty of its own, because it describes a right rather than a duty. What you can recover depends on which exception applies:

• Breach of contract: generally the pay and benefits you would have earned under the agreement.
• Wrongful termination in violation of public policy: a tort claim, so damages can include lost pay and emotional distress, and punitive damages in some cases.
• Statutory claims: each statute has its own remedies, such as lost pay, damages, civil penalties and attorney’s fees. For example, Labor Code §1102.5 adds a civil penalty of up to $10,000 per employee for each violation, awarded to the employee who was retaliated against.

Our guide to what an employment case is worth explains how these damages are measured.

By the numbersTwo years

Deadlines

Claim	Deadline	Source
Retaliation complaint with the Labor Commissioner	1 year after the violation; may be extended for good cause	Labor Code §98.7(a)
Wrongful termination in violation of public policy (lawsuit)	2 years	Code Civ. Proc. §335.1
Breach of an oral or implied contract	2 years	Code Civ. Proc. §339
Breach of a written contract	4 years	Code Civ. Proc. §337(a)
Discrimination or retaliation under FEHA	3 years to file with the Civil Rights Department	Gov. Code §12960(e)(5)

Which deadline applies, and when it starts, can turn on the facts. Get advice well inside the shortest one that might fit.

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Related sections

Section	What it does
Labor Code §2924	Limits when an employer can end a fixed-term job early
Labor Code §2925	Lets an employee end a fixed-term job early for the employer’s breach
Labor Code §§201–202	Final pay timing when you are fired or quit
Labor Code §1401	60-day notice for covered mass layoffs, relocations and terminations
Labor Code §1102.5	Bars retaliation for whistleblowing or refusing to break the law
Labor Code §98.6	Bars retaliation for wage complaints and other Labor Code rights
Government Code §12940	Bars discrimination, harassment and retaliation under FEHA

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How it plays out

💡 Example: Rosa, a hypothetical project coordinator, signs a written contract to work for 12 months at $6,000 a month. After 4 months her employer ends the job, saying only that “California is at will.” Because her job was for a specified term of more than one month, section 2922’s at-will rule doesn’t apply, and the employer needed a ground such as those in section 2924 to end it early. If it had none, Rosa may have a breach-of-contract claim for the 8 months left on the contract: 8 × $6,000 = $48,000, before any reduction the law allows for pay she earns at a new job during that time. Her deadline for a written-contract claim is 4 years.

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What to do if you were fired

1. Save your offer letter, any contract, the employee handbook and any at-will acknowledgment you signed.
2. Write down what you were told about why you were fired, who said it and when.
3. Make a timeline of anything that happened before the firing: complaints, leave requests, injuries, reports of problems, or changes in how you were treated.
4. Check that your final pay arrived on time.
5. Request your personnel file and payroll records in writing.
6. Don’t sign a severance agreement before it is reviewed; it may release these claims. See what to check before you sign.

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Frequently asked questions

Is California an at-will state?

Yes. Labor Code §2922 makes employment with no specified term at will. But the presumption gives way to contracts, public policy and the many statutes that ban firing for particular reasons.

Can my employer fire me without giving a reason?

Generally yes, if you are at will. The legal question is not whether the employer gave a reason, but whether the real reason was an illegal one, such as discrimination or retaliation.

Do I have to give two weeks’ notice before I quit?

No law requires it for at-will jobs. Notice affects only when your final pay is due: within 72 hours if you quit without notice, or on your last day if you gave at least 72 hours’ notice.

Does a probationary period mean I can be fired more easily?

Section 2922 doesn’t mention probation. A probationary period can matter if your employer promised that employees who pass it can be fired only for cause, which may help an implied-contract claim. The ban on discriminatory or retaliatory firing applies during probation too.

I signed an at-will agreement. Can I still sue?

An at-will agreement mostly affects contract claims. It doesn’t waive your protection against discrimination, retaliation or firing in violation of public policy.

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Sources

• Labor Code §2922
• Labor Code §2924 and §2925
• Labor Code §201 and §1401
• Labor Code §98.7
• Code of Civil Procedure §335.1, §337 and §339
• Government Code §12960
• Guz v. Bechtel National, Inc. (2000) 24 Cal.4th 317
• Tameny v. Atlantic Richfield Co. (1980) 27 Cal.3d 167

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