PHRCA Employee Relations and Terminations Questions and Answers — Questions and Answers
Question 1: An employer in California with 85 employees lays off 55 workers within a 30-day period due to a sudden loss of a major client. What are the employer's primary obligations under the California Worker Adjustment and Retraining Notification (Cal-WARN) Act?
- Provide 30 days' advance written notice to the affected employees and government entities.
- Offer a severance package equivalent to one week of pay for each year of service.
- Provide 60 days' advance written notice to affected employees and various government entities. (Correct answer)
- No notice is required because the layoff was due to an unforeseeable business circumstance.
Correct answer: Provide 60 days' advance written notice to affected employees and various government entities.
The Cal-WARN Act applies to employers with 75 or more employees and is triggered by a 'mass layoff,' which is defined as laying off 50 or more employees within a 30-day period. The law requires the employer to provide 60 days' advance written notice to the affected employees, the California Employment Development Department (EDD), the local workforce investment board, and the chief elected official of each city and county government where the layoff occurs. While there are exceptions that may reduce the notice period, the obligation to provide notice is not eliminated entirely by unforeseeable business circumstances.
Question 2: A manager at a California company is terminated for poor performance. The termination meeting is conducted, and the manager is informed of the decision. According to the California Labor Code, when must the employer provide the manager with their final paycheck, including all earned wages and accrued, unused vacation time?
- On the next regularly scheduled payday.
- Within 72 hours of the termination.
- Within 24 hours of the termination.
- Immediately at the time of termination. (Correct answer)
Correct answer: Immediately at the time of termination.
California Labor Code section 201 states that if an employer discharges an employee, the wages earned and unpaid at the time of discharge are due and payable immediately. This includes all compensation, such as accrued but unused vacation time, which is treated as wages upon separation. The rules are different for an employee who quits, but for an involuntary termination, payment must be made at the time of termination.
Question 3: An employee resigns from their job, claiming they were forced to quit because their supervisor subjected them to a continuous pattern of derogatory comments, exclusion from team activities, and unreasonable performance standards after the employee reported a safety concern. This scenario could potentially lead to what type of legal claim?
- Constructive discharge (Correct answer)
- Breach of implied contract
- Promissory estoppel
- Negligent hiring
Correct answer: Constructive discharge
Constructive discharge occurs when an employer knowingly creates or permits working conditions that are so intolerable that a reasonable person in the employee's position would feel compelled to resign. The employee's resignation is then treated as a wrongful termination. The continuous pattern of negative behavior following a protected activity (reporting a safety concern) makes the work environment intolerable, forming the basis for a constructive discharge claim.
Question 4: A former employee submits a written request to inspect their personnel file. Under California Labor Code section 1198.5, which of the following documents is the employer permitted to withhold from the inspection?
- Performance reviews conducted during their employment.
- Attendance records and timesheets.
- Records relating to the investigation of a possible criminal offense. (Correct answer)
- Copies of their original employment application.
Correct answer: Records relating to the investigation of a possible criminal offense.
California Labor Code section 1198.5 grants employees the right to inspect their personnel files. However, the law explicitly excludes certain records from this right, including records relating to the investigation of a possible criminal offense, letters of reference, and records obtained before employment. Performance reviews, attendance records, and employment applications are considered part of the standard personnel records that must be made available.
Question 5: An employee is fired shortly after filing a workers' compensation claim for a legitimate on-the-job injury. Although the company is in an 'at-will' employment state, this termination may be illegal based on which exception?
- Implied covenant of good faith and fair dealing
- Public policy exception (Correct answer)
- Promissory estoppel
- Implied contract exception
Correct answer: Public policy exception
The public policy exception prohibits an employer from terminating an employee for reasons that violate a fundamental public policy. Firing an employee for exercising a legal right, such as filing a workers' compensation claim, is a classic example of a violation of public policy and is illegal under California Labor Code section 132a.
Question 6: An HR manager receives a complaint from an employee alleging harassment by a supervisor. To ensure a legally defensible investigation that complies with California's FEHA requirements, what is one of the most critical initial steps?
- Immediately terminate the supervisor to show a zero-tolerance policy.
- Require the complainant to provide a sworn affidavit before proceeding.
- Assign a trained, neutral investigator and take prompt action to begin the investigation. (Correct answer)
- Wait to see if more complaints are filed to establish a pattern of behavior.
Correct answer: Assign a trained, neutral investigator and take prompt action to begin the investigation.
California law (FEHA) and court decisions require employers to conduct a prompt, thorough, and impartial investigation into harassment complaints. A critical first step is to assign a qualified, unbiased investigator and begin the process without delay. Waiting for more complaints or terminating the accused without an investigation would violate due process and legal requirements for a fair investigation.
PHRCA Employee Relations and Terminations Questions and Answers
An employer in California with 85 employees lays off 55 workers within a 30-day period due to a sudden loss of a major client.
What are the employer's primary obligations under the California Worker Adjustment and Retraining Notification (Cal-WARN) Act?