Constructive Discharge in California: What Employers Must Know

Introduction

In California workplace law, termination does not only occur when an employer explicitly fires an employee. In some situations, an employee’s resignation may be legally treated as a firing if the employer’s conduct created such intolerable conditions that the employee had no reasonable alternative but to quit. This doctrine is known as constructive discharge.

For employers, constructive discharge can carry the same legal consequences as wrongful termination. It often arises in discrimination, harassment, and retaliation cases, where the law is designed to ensure that employers cannot “force an employee out” to avoid liability.

What Is Constructive Discharge?

California courts define constructive discharge as a resignation that is legally deemed a termination because:

• The employer (through managers, supervisors, officers, or key decision makers) intentionally created or knowingly permitted intolerable working conditions;

• The conditions were so aggravated that a reasonable employee in the same situation would feel compelled to resign; and

• The employee in fact quit because of those conditions.

(Turner v. Anheuser-Busch, Inc. (1994) 7 Cal.4th 1238, 1247–48; Mullins v. Rockwell Int’l Corp. (1997) 15 Cal.4th 731, 737.)

How Intolerable Do Conditions Have to Be?

The bar for constructive discharge is high. Courts have made clear:

• Conditions must be unusually aggravated or involve a continuous pattern of mistreatment.

• Single, trivial, or isolated incidents typically are not enough.

• However, in extreme cases — such as violence against an employee or an illegal ultimatum — a single event may suffice. (Turner, supra, at 1247 fn.3.)

The test is objective. The question is not whether the particular employee felt they had no choice, but whether a reasonable person in the same circumstances would feel forced out. (Simers v. Los Angeles Times Commc’ns, LLC (2018) 18 Cal.App.5th 1248, 1272.)

Examples from Case Law

Potential constructive discharge situations:

• Persistent retaliation or harassment known to management but not corrected.

• Ongoing denial of disability or religious accommodations, leaving the employee unable to work under reasonable conditions.

• A sustained campaign of hostility, unjust criticism, or stripping of duties that, considered as a whole, makes continuing employment untenable.

Typically not enough on their own:

• A poor performance evaluation, even if the employee believes it is unfair.

• A demotion or pay cut standing alone, absent other aggravated mistreatment.

• An occasional dispute, negative comment, or isolated disciplinary action.

Courts stress that employees must be driven out by conditions so severe that continued employment is not objectively reasonable — not merely by dissatisfaction with legitimate management decisions. (Turner, supra, at 1247–48; Vasquez v. Franklin Mgmt. Real Estate Fund, Inc. (2013) 222 Cal.App.4th 819, 827.)

Employer Risks

Constructive discharge can expose employers to the same liability as an outright termination, including:

• Wrongful termination claims, if resignation is tied to discriminatory or retaliatory conditions.

• FEHA claims, since constructive discharge can constitute the “adverse employment action” required for discrimination and retaliation cases. (Steele v. Youthful Offender Parole Bd. (2008) 162 Cal.App.4th 1241, 1253.)

• Back pay, emotional distress damages, and attorney’s fees if a resignation is deemed compelled.

Because the standard often presents a fact question, cases can more easily reach a jury, increasing litigation costs and uncertainty.

Best Practices for Employers

To reduce constructive discharge risk, California employers should:

• Respond quickly to complaints: Promptly investigate and resolve reports of harassment, retaliation, or discrimination.

• Avoid “pushing out” employees: Negative treatment designed to encourage resignation may later be reclassified as a firing.

• Document accommodation and corrective actions: Keep clear records of efforts to address employee concerns.

• Train managers: Supervisors need to understand that creating or tolerating intolerable environments can be legally equivalent to termination.

• Seek guidance on resignations: If an employee resigns amid unresolved conflict or after a complaint, consult legal counsel (e.g., myself) to evaluate exposure.

Bottom Line

Constructive discharge ensures that employers cannot sidestep liability by making working conditions so unpleasant that employees quit on their own. California law treats such resignations as firings, with all the legal consequences that follow.

For business owners, the lesson is simple: if you allow intolerable working conditions to persist, a resignation may legally count as a termination. By fostering fair, consistent, and responsive workplace practices, you protect your business while reducing the risk of constructive discharge claims.

Citations

Gov. Code § 12940; Turner v. Anheuser-Busch, Inc., 7 Cal.4th 1238 (1994); Mullins v. Rockwell Int’l Corp., 15 Cal.4th 731 (1997); Steele v. Youthful Offender Parole Bd., 162 Cal.App.4th 1241 (2008); Simers v. L.A. Times Commc’ns, LLC, 18 Cal.App.5th 1248 (2018); Vasquez v. Franklin Mgmt. Real Estate Fund, Inc., 222 Cal.App.4th 819 (2013); CACI No. 2510.