In California, most employment relationships are at-will, meaning either the employer or employee may terminate the relationship at any time for a lawful reason.
However, at-will employment does not permit termination for unlawful reasons such as discrimination or retaliation.
A contract employee, by contrast, works under a written or implied agreement that defines the duration or conditions of employment. The contract may limit the employer’s ability to terminate the employee without cause.
The key difference is whether there are legally enforceable limits on termination.
Employment disputes frequently turn on whether an agreement modified the at-will relationship. Careful drafting and clear language are critical to avoid unintended contractual obligations.
