California Public Employee Layoffs: When Public Entity Claims Cross Legal Lines

When layoffs occur among California public employees, questions often arise about their legality. Understanding the specifics of the California public employee layoff process, as well as the implications for federal employees, is crucial to identify potential wrongful terminations and protect your rights.

Hershey Law will help you to learn:

  • What a public entity’s claim is
  • Which organizations qualify as public entities
  • When a layoff becomes wrongful termination
  • Legal grounds for layoffs in California
  • Common violations during layoffs
  • How to file a public entity claim
  • Where to find legal help

Read on to ensure you know your rights and how to protect them during public employee layoffs.

What are California Public Employee Layoffs?

A public entity claim in California is a formal, written demand for compensation or other remedy filed against a government organization or agency. This claim is typically the mandatory first step before you can pursue legal action, such as a lawsuit, against the public entity for harm caused by its actions.

So, what is a public entity in practical terms? Under California law, Government Code Section 811.2 defines a public entity as any state or local government agency, board, or commission. The term ‘public entity’ is specifically defined by this code section, which is crucial for understanding who can be the subject of such claims.

Purpose:

  • Inform the agency of alleged wrongdoing.
  • Allow the agency to investigate and resolve without litigation.
  • Protect your right to sue later.

Claims commonly arise from various issues, including employment disputes, property damage, personal injury, or contract breaches. Therefore, it’s critical to understand that failure to file a claim in a timely and adequate manner can legally bar you from pursuing any further action, making strict compliance with procedures and deadlines essential.

Note: If two or more employees are affected by similar issues, their claims might share common grounds.

What Qualifies as a Public Entity in California?

Understanding the public entity’s meaning is fundamental when considering a claim. In California, a public entity broadly refers to any state or local government organization, overseen by the state personnel board. These are entities funded by taxpayer dollars and are responsible for providing public services and upholding citizens’ rights under state law. This responsibility extends to ensuring fair employment practices.

So, what is a public entity in practical terms? California law, specifically Government Code Section 811.2, defines it comprehensively. This includes:

  • State government bodies: Such as state departments and agencies.
  • Political subdivisions: Like counties and cities.
  • Municipalities: Including city councils and local government offices.
  • Agencies created by statute or constitution: This can encompass a wide array, such as:
  • School districts: Including the schools they oversee, which are often directly affected by public employee layoffs and budget cuts
  • Police departments
  • Public universities (e.g., University of California, California State University systems)
  • Public transit authorities
  • Water districts
  • County hospitals

Public entities operate under specific legal frameworks designed to ensure transparency, fair treatment, and the protection of individual rights. Employees and citizens can file claims against them when harm occurs due to negligence, employment violations, or breaches of statutory obligations.

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When Does a Public Employee Layoff Become Wrongful Termination?

While layoffs in the public sector typically occur due to legitimate reasons like budget cuts, reorganizations, or unforeseeable business circumstances lack of work/funds, they can become wrongful termination when specific state laws or contractual agreements—such as a collective bargaining agreement or other legally binding employment agreement that establishes layoff procedures and employee rights—are violated.

So, can a layoff be wrongful termination? Absolutely. A layoff transitions into a wrongful termination claim when the layoff process is used to mask unlawful motives or procedures. This includes:

  • Discriminatory Reasons: Targeting specific employees based on protected characteristics such as age, race, gender, sexual orientation, disability, religion, or national origin.
  • Retaliation: Laying off employees in retaliation for engaging in legally protected activities, such as:
    • Whistleblowing (reporting illegal or unethical behavior)
    • Filing a complaint about workplace safety.
    • Exercising their rights under workers’ compensation.
    • Taking protected leave (e.g., FMLA/CFRA leave).
  • Violation of Contractual Agreements: Breaching terms clearly outlined in a collective bargaining agreement, other legally binding employment agreement, individual employment contracts, or established public agency policies (e.g., failing to follow seniority rules, not offering available positions to laid-off employees as required by policy).
  • Violations of Public Policy: Terminating an employee for reasons that violate a fundamental public policy, such as refusing to engage in an illegal act or performing a civic duty (like jury service).
  • Lack of Transparency or Due Process: Layoffs conducted without clear, documented reasons or contrary to established internal policies can also provide grounds for a wrongful termination claim.

If you suspect your public employee layoff was wrongful, it’s vital to promptly gather all relevant evidence and contact wrongful termination lawyers.

Legal Grounds for Public Employee Layoffs in California

Under CA layoff laws, public entities must strictly adhere to established procedures and have legitimate reasons to conduct legal layoffs affecting part time or full time employees. These grounds are typically tied to organizational necessity rather than individual performance.

Legal layoff reasons generally include:

  • Lack of Work or Funds: This is a common justification, where a reduction in workload or budgetary constraints necessitates a smaller workforce.
  • Reorganization: Significant restructuring of departments, functions, or services that leads to the elimination or consolidation of positions.
  • Abolishment of a Department or Program: When an entire department or a specific program is terminated, leading to the layoff of its employees.
  • Efficiency and Economy: Decisions made to improve operational efficiency or save costs, provided these are legitimate business reasons and not a pretext for unlawful termination.

To ensure a layoff is legally compliant, public entities must:

  • Provide Clear, Documented Reasons: The basis for the layoff must be well-articulated and supported by objective evidence.
  • Respect Seniority Rules: Many public sector collective bargaining agreements and civil service rules mandate layoffs based on seniority, with less senior employees being laid off before more senior ones in affected classifications. Determining the order of layoffs often involves calculating seniority scores, which are based on the length of service, qualifying pay periods, and other factors such as military service. Seniority points are used as a key factor in determining layoff order, demotion, or bumping rights among employees. Layoffs may impact specific classes or positions within the organization, and it is important to identify the relevant classes for notification and employment actions. Employees with permanent status are subject to specific rules regarding layoffs, and procedures may differ for permanent and temporary employees. Permanent employees generally have greater protections and rights in the layoff process, while temporary layoffs (such as furloughs) may apply to employees expected to return to work after a defined period.
  • Follow Established Policies: Public agencies often have detailed internal policies regarding layoff procedures, including selection criteria, notice periods, and reemployment rights.
  • Offer Alternatives (where applicable): Agencies may be required to explore alternatives to layoff, such as voluntary reduced work time, retraining, early retirement, or offering transfers/demotions to other available positions.
  • Provide Advance Notification: Public entities are typically required to give advance notice consistent with their internal policies, collective bargaining agreements, or applicable state regulations.

Failure to meet these requirements can expose public entities to legal challenges, potentially resulting in employee reinstatement, back pay, and other damages.

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Common Violations in Public Employee Layoffs

Even when a layoff seems legitimate on the surface, the manner in which it’s executed can lead to serious legal violations. Employees have legal protections against wrongful termination and other violations during layoffs. Several common issues arise in California public employee layoffs:

One major violation is when an employer attempts to terminate an employee for reasons that violate public policy. For example, it is unlawful to terminate an employee in retaliation for whistleblowing or for exercising their legal rights.

If you believe your protections have been violated during a layoff, you may need to enforce your rights through legal action or by reporting the violation to the appropriate agency.

Discrimination

This occurs when employees are selected for layoff based on their membership in a protected class, such as race, gender, age (over 40), disability, national origin, religion, sexual orientation, or marital status.

For example, if a layoff disproportionately affects older employees without a justifiable, non-discriminatory reason, it could be discriminatory.

Retaliation

This is a significant concern. A layoff is retaliatory if it targets an employee for engaging in a legally protected activity. This includes:

  • Reporting workplace harassment or discrimination.
  • Filing a workers’ compensation claim.
  • Requesting a reasonable accommodation for a disability.
  • Participating in an investigation against the employer.
  • Exercising rights under wage and hour laws.

Violations of Public Policy

This type of wrongful termination occurs when an employee is laid off for a reason that violates a fundamental public policy established by statute or constitutional law. Examples include:

  • Terminating an employee for refusing to commit an illegal act on behalf of the employer.
  • Laying off an employee for reporting a violation of a law that serves the public interest (e.g., health and safety regulations, environmental laws).
  • Dismissing an employee for exercising a legal right or fulfilling a legal obligation, such as serving on a jury or taking military leave.

Employees who suspect their layoff involved discrimination, retaliation, or a violation of public policy should meticulously document all relevant incidents and seek legal advice without delay.

How to File a Public Entity Claim in California?

Filing a public entity claim in California is a precise process with strict requirements. Missing a step or a deadline can jeopardize your ability to seek justice.

Here’s a general overview of the steps involved:

  • Identify the Correct Public Entity: Determine which specific government agency is responsible for the alleged wrongdoing. This could be a city, county, state agency, school district, etc.
  • Obtain the Official Claim Form: Many public entities have their own specific claim forms. You must use the correct form, which can usually be found on the entity’s website or by contacting their clerk’s office or legal department.
    • If no specific form exists, you will need to draft a claim that meets statutory requirements.
  • Gather Information and Evidence: Collect all relevant details about your layoff and the alleged wrongdoing. This includes:
    • Your contact information.
    • A detailed description of the incident (date, location, circumstances of the layoff, and the effective date).
    • A description of the damages or losses you’ve incurred (e.g., lost wages, emotional distress).
    • The specific dollar amount of your claim (if known).
    • Any supporting documentation (e.g., layoff notice, employment contract, emails, performance reviews, witness information).
    • It is important to report all relevant details and incidents accurately in your claim.
  • Adhere to Strict Deadlines: This is perhaps the most critical aspect. For most claims involving personal injury or property damage (which can include employment-related harm), you typically have six (6) months from the effective date of the incident to file your claim.
    • For breach of contract claims, the deadline is usually one year. These deadlines are strictly enforced, and exceptions are rare.
  • Submit the Claim: The claim must be properly submitted to the correct office or individual within the public entity (e.g., the clerk, secretary, auditor, or governing body).
    • It’s advisable to submit it in a way that provides proof of delivery (e.g., certified mail with return receipt requested, or hand-delivery with a date-stamped copy).
  • Await Response: Once submitted, the public entity has 45 days to respond to your claim. They must provide written notices of acceptance, rejection, or settlement offers. In some cases, a hearing before an administrative law judge may be part of the process.

What if they reject it? They must provide a written notice of rejection, which will typically include information about your right to file a lawsuit and the deadline to do so (usually six months from the date of the rejection notice).

Find a Lawyer for Public Employee Layoffs in California

If your claim is denied, a lawyer can represent you in negotiations or, if necessary, in court, advocating for your rights to reinstatement, back pay, benefits, or other damages, providing you with additional information throughout the process. This might involve presenting your case before an administrative law judge.

Affected employees and workers impacted by layoffs may need assistance with unemployment benefits, health insurance options, and finding new jobs. The Employment Development Department and the California Department offer resources and support for unemployed public employees, including guidance on applying for benefits, maintaining health insurance coverage, and exploring employment opportunities.

Concerned about your public employee layoff in California? Contact us today for a free consultation to evaluate your case and discuss your legal options.