The loss of a job can be devastating to your mental health, sense of identity, and ability to earn a living. When you face something such as a job loss, emotionally, it may bring shock, anger, or depression. Financially, it may lead to difficulty meeting basic needs and low long-term earnings. During this challenging period, knowing what you are entitled to and what assistance government programs and legal professionals can offer is essential.

You also want to know what you are entitled to after termination in California. Also, how to file or contest unemployment insurance (UI) benefits and other financial and legal resources that may assist you in moving on. At Stop Unpaid Wages, our experienced employment law attorneys are ready to help you understand your rights, recover what you are owed, and guide you through every step of the legal process.

Emotional and Financial Impact of Job Loss

Losing a job can trigger immediate emotional and financial hardship. The consequences can be temporary or long-lasting, and active measures are needed to regain stability and well-being.

Mental Health and Monetary Insecurity

The stress of losing a job can cause severe emotional and financial strain. It often triggers anxiety, depression, and a range of intense emotions, from initial shock to growing sadness or anger due to the persistence of unemployment. Unemployed individuals have a higher chance of developing poor mental health than those who are employed.

The loss of regular income can make it difficult to meet daily expenses, repay debts, and maintain financial stability. Over time, job loss can significantly reduce a person’s overall finances. Such emotional and financial stresses tend to reinforce each other: emotional distress worsens financial strain, which can diminish motivation and extend the period of unemployment. Breaking this cycle of emotional and financial distress may require professional, legal, or mental health support.

Identity and Routine Loss

Work is more than just a paycheck; it provides structure, purpose, and identity. Many individuals experience a loss of confidence and purpose following job termination, as this loss of identity often leads to fatigue, social withdrawal, and physical health problems. Disrupted routines can further contribute to emotional instability.

The Value of Early Legal and Financial Planning

Acting early helps protect your legal rights and maintain financial stability after losing your job. This may include cutting nonessential expenses and reviewing severance packages or extended health insurance coverage. Legally, acting quickly to understand your rights is essential, especially when applying for unemployment benefits or filing wrongful termination claims. Prioritizing mental health can also improve resilience and support long-term recovery.

If you face wrongful termination or unpaid benefits, consult a lawyer promptly to understand your legal options and avoid costly mistakes. Legal advice helps you consider all possible remedies, allowing you to defend your rights and confidently move forward.

Basic California Post-Termination Legal Rights

Although California is an at-will employment state, employees have critical legal protections even after an employer terminates them. Employers in California can terminate employees without following at-will employment, meaning employers can terminate workers at any time, with or without cause. However, this rule has critical exceptions, cushioning employees against unfair treatment. Some terminations that seem legal at first glance violate employment laws.

Critical exceptions are

  • Implied Contracts: If company policies or practices imply that the company would continue to employ the employee unless there is a good reason to do otherwise, there may be an implied contract, even when no written agreement exists

  • Implied Covenant of Good Faith and Fair Dealing: Both parties must deal fairly with each other. This principle may be breached by employers who are in bad faith, including by misleading or sabotaging an employee

  • Public Policy Violations: Employers break the law when they fire someone for reporting wrongdoing or exercising legal rights, for example, dismissing an employee because they reported an illegal act, served on a jury, or filed a workers' compensation claim

Illegal Causes of Dismissal

State and federal laws do not allow the discharge of workers based on discriminatory or retaliatory motives, even under at-will employment.

Discrimination-Based Termination

It is illegal for employers to terminate someone based on the following legally protected characteristics:

  • Age (40+)

  • Ethnicity or race

  • Religion

  • Gender, gender identity, or sexual orientation

  • Medical condition or disability

  • Marital, military, or veteran status

  • Victim status (for example, domestic violence or stalking)

  • Genetic information

  • Political participation or membership

Retaliation against Protected Actions

It is unlawful for employers to retaliate against workers for engaging in any of the following protected activities:

  • Complaining about harassment, discrimination, wage theft, or unsafe conditions

  • Engaging in workplace investigations

  • Asking or taking a protected leave (for example, FMLA, CFRA, paid sick leave)

  • Negotiating wages (to encourage pay transparency)

  • Refusing to participate in unlawful activities

Whistleblower Retaliation or Leaves

If you are dismissed shortly after you report your employer to the authorities or demand a legally protected leave, it can strongly indicate retaliation.

Red Flags of Wrongful Termination

Certain signs suggest your employer may have violated the law in terminating you. The following red flags must be reviewed by the law immediately:

  • No Performance Records or Process: If you are fired because of poor performance and there are no records or other disciplinary actions taken, this is a huge red flag

  • Timing of Termination: Termination soon after filing a complaint or taking leave may be a sign of unlawful retaliation

  • Patterns or Remarks of Discrimination: Discrimination can be determined by unequal treatment, biased remarks, or prior threats by managers

If any of these signs are observed, consult a lawyer immediately. An employment lawyer will analyze your case, determine whether your rights have been infringed, and assist you in gathering necessary evidence, including emails, HR documents, testimonies of eyewitnesses, or journal entries. Hiring an attorney can improve your chances of successfully preparing and presenting your appeal.

Eligibility for California Unemployment Insurance Benefits

Unemployment Insurance (UI) provides temporary income to individuals who lose their jobs through no fault. Claimants in California must satisfy some eligibility requirements to obtain the benefits, which also differ according to the circumstances of their job separation and their capacity to continue working.

The Basis of a Claim

To receive UI, a person must have lost their job without fault, that is, in the case of a layoff, closing of a business, or a reduction-in-force. The Employment Development Department (EDD) also assesses the claimants to determine whether they had sufficient income within a 12-month base period. The usual base period includes the first four of the last five completed calendar quarters before the claim date.

Applicants must have earned either $1,300 in any quarter or at least $900 in total wages and 1.25 times the amount earned in their highest quarter. If the standard base period is not satisfied, an alternative base period (the four latest quarters) can be utilized.

Claimants must also actively seek employment and register with CalJOBS within 21 days after receiving the notice to register. They have to be physically fit, available, and willing to work. Health problems, caregiving, or transportation issues may also limit eligibility.

Factors that Determine Eligibility

The eligibility is based on the way the employment was terminated. When a person is fired due to inefficient work or failure to meet the standards, they tend to continue receiving benefits, since this is not their fault.

Nevertheless, misconduct may lead to the disqualification of a claimant through termination. In California, misconduct refers to intentional or reckless behavior that violates a significant obligation to the employer. It is not simply carelessness but frequent unexcused absences or severe policy violations.

In some cases, employers may characterize terminations as misconduct or voluntary resignation, potentially impacting the employee’s eligibility for UI benefits. Consequently, conflicts may emerge, and the EDD examines the two parties. Claimants must clearly and accurately describe their case, particularly during interviews.

Downsizing or company closures that result in layoffs or the elimination of positions are usually obvious examples of eligibility.

Where an employee is voluntarily resigning, they have to demonstrate good cause to be eligible for unemployment insurance benefits. Good reasons include the following:

  • Harmful working conditions

  • Medical problems (backed up by medical recommendations)

  • Moving with a spouse or a domestic partner

  • Taking care of a sick relative who is severely ill

  • Domestic violence issues

  • Discrimination or harassment at work, as long as the employee attempted to solve the problem first

Partial Unemployment Benefits

Part-time workers or those whose hours have been substantially cut are eligible for partial UI. The EDD calculates these by taking the first 25 or 25 percent of the gross weekly wages (whichever is greater) and then deducting this sum from the claimant's weekly benefit amount (WBA). The WBA varies between 40 and 450 dollars depending on the previous income.

Understanding these eligibility rules helps ensure qualified individuals receive the unemployment benefits they are entitled to during this transitional period.

The California Unemployment Benefits Application Process

There are specific steps and documents to apply for unemployment benefits in California. Knowledge of the process can minimize mistakes, avoid waiting, and increase the chances of a successful claim.

Methods of Application: Online vs. Phone

The California Employment Development Department (EDD) provides various methods of making a claim.

  • eApply4UI (UI Online): The most efficient and preferred method is through UI Online via the myEDD portal. This system is available 24 hours a day and enables the applicants to file claims, check their benefits, and get updates effectively. To access it, one is supposed to create a myEDD account

  • Phone Applications: Applications can also be made by phone, though this method often results in longer wait times. Applicants under 18 must apply via phone, fax, or mail, as certain restrictions may apply to UI Online use

List of Documents that are Required

The application process can be more straightforward when adequately prepared with the appropriate documents.

  • Personal Information: Applicants must provide their full legal name and any other names used while employed, as well as their social security number, current address, phone number, birthdate, and a valid driver's license or state ID number

  • Employment and Work History: A Precise work history of the last 18 months is necessary. This includes employers' names, addresses, and phone numbers; employment dates; the final day worked; the cause of leaving (for example, laid off, fired, or quit); and pay stubs or W-2s

First Phone Interview and the Follow-up

Some applications may trigger a phone interview, especially with inconsistencies or unclear details. Some of the things you should expect while on the phone interview include the following:

EDD does not use the interview to settle disputes but to establish eligibility. Statements made during the interview can significantly influence the EDD’s decision on benefit eligibility.

Some interview tips include the following:

  • Be Truthful and Precise: Remain factual about losing your job

  • Be Concise: Focus on facts that support your claim and avoid unnecessary personal detail

  • Be respectful: Communication with EDD agents is assisted by a professional attitude

  • Be Accurate: When in doubt about something, it is best to say, I do not know, rather than make a guess

  • Be Prepared: Have your papers prepared, make notes, and make sure you are somewhere quiet with a good phone signal

Maintain a Job Search Log

Once they apply, claimants must certify for benefits every two weeks and actively seek employment, and they are required to search diligently. This includes registering with CalJOBS and uploading a resume online within 21 days of receiving the registration notice.

Job seekers are advised to keep a record of all job search activity, including:

  • Employer dates and names contacted

  • Applied positions

  • Interview details

Inability to keep records or register with CalJOBS can lead to delays in payment or non-payment of benefits.

Denied Unemployment Claims

If your unemployment benefits claim is denied, you can appeal the decision. The California statute entitles you to appeal. Understanding the process of appealing and the reasons behind denial is essential to challenge the decision successfully.

The Notice of Determination

If your claim is denied, the EDD issues a Notice of Determination (DE 1080CZ). This is a document that states the reasons why the EDD denied your benefits and the process of appealing.

Some of the general causes of rejection include the following:

  • Insufficient Earnings: You did not earn enough during the base period. Check your wage summary to see whether it has any errors, and contact EDD if necessary

  • Voluntary Quit Without Good Cause: You left your job without a legally good reason. Collect documentation that shows you were justified (for example, unsafe working conditions, health problems)

  • Misconduct: You were dismissed because of misconduct, not only because of poor performance. You should demonstrate that your conduct does not meet the legal definition of misconduct

  • Not Actively Job-Hunting: You did not meet the weekly job search requirements. Submit job search documentation and make sure that CalJOBS is registered

  • Not Able and Available to Work: You could not work physically or legally. Provide medical or other support documents

  • False Statements: In case you provided false or incomplete information, you should consult a lawyer as soon as possible and come up with factual corrections

Appeal Process

You should appeal within 30 days of your Notice of Determination date using form DE 1000M or a written letter. A good reason must justify late appeals.

Some strong appeal tips include the following:

  • Give a clear reason as to why you disagree with the denial

  • Attach pertinent records (for example, performance reviews)

  • Find witnesses who will help you to prove your version of the events

Keep certifying to receive benefits biweekly- you will only accept payment after certifying, even when your appeal is granted.

Consider hiring an attorney to assist you in preparing and presenting your appeal.

The Hearing of Appeal Process

An Administrative Law Judge (ALJ) conducts the hearing, which is set by the California Unemployment Insurance Appeals Board (CUIAB). You will be given a Notice of Hearing at least 10 days before the hearing.

During the hearing, arrive on time, maintain a professional demeanor, and bring multiple copies of all relevant documents. Produce your evidence and witnesses; apply for subpoenas when required.

Cross-examine employer witnesses to refute any false or misleading evidence and prepare a closing statement that summarizes your key points and evidence.

In case the decision of the ALJ is not satisfactory, you have the right to appeal to the Appeals Board within 30 days. An additional appeal to the Superior Court may be made as a Petition for Writ of Mandate within six months if necessary.

The most critical thing is to be prepared and organized to overturn a denial and obtain the benefits you are entitled to.

Other Financial and Legal Support When You Lose Your Job

The loss of a job may also reveal previous violations in the workplace that can bring you additional compensation besides unemployment insurance (UI). You should consider every financial and legal possibility at this point.

Possible Legal Rights That People Can Claim

Besides UI benefits, you can have legal claims related to your former job:

  • Unpaid Wages & Overtime: You may have a claim if you were not paid for all the hours you worked, were not given minimum wage or overtime pay, or were not given your final paycheck in time. California demands final payment on the last day of work in case of termination or within 72 hours in case of resignation

  • Missed Breaks: The California law requires a 30-minute unpaid meal break after five hours and an additional break after ten hours of a shift. You also have a right to 10-minute paid rest breaks after every four hours of work. The failure to take breaks may lead to additional payments

  • Discrimination or Harassment: In case you were discriminated against or harassed based on a protected characteristic (such as race, gender, age, or disability), although this was not why you were terminated, you might also have a claim

  • Retaliation: You may file a retaliation claim in case your employer terminated or disciplined you because of reporting a safety issue or a wage violation

Termination may prompt individuals to reevaluate how they were treated during their employment, potentially uncovering legal violations. Mistreatment tolerated due to fear of losing the job may now support a legal claim after termination. It is prudent to check through your employment history to identify violations that can help your financial recovery.

Backpay Recovery and Wage Theft

If you think your employer has not paid you wages or benefits, you may file a claim at the California Labor Commissioner Office (DLSE). Complete the DLSE Form 1 and file it online, by mail, or in person. You must provide supporting documents like pay stubs, timesheets, and contracts.

The DLSE can schedule a settlement conference or a formal hearing. Employers deliberately failing to provide final pay on time may be subject to waiting time penalties, up to 30 days’ wages. You generally have up to three years to file a wage claim.

If the procedure is too daunting, you can employ an employment lawyer to assist you in filing the claim, collecting evidence, and negotiating or appearing in court on your behalf.

Help-Seeking Irrespective of Immigration Status

California law covers all employees, whether they are immigrants or not. During investigations, the Labor Commissioner does not ask for or report immigration status. Undocumented workers have the right to minimum wage, overtime, meal and rest breaks, workplace health and safety protections, and workers’ compensation. The law prohibits employers from retaliating against workers who assert their rights, including threatening to report their immigration status.

Nevertheless, California law generally disqualifies undocumented workers from receiving UI benefits because legal authorization to work is required. Attorneys can assist in explaining what benefits and protections are available and assist workers in making safe and successful claims, particularly when the issue of retaliation is a factor.

Find an Efficient Employment Attorney Near Me

Losing a job is stressful, but it may uncover legal violations such as unpaid wages, retaliation, or wrongful termination. A seasoned employment lawyer can help you recover lost wages, defend your rights, assist in appeals and hearings, and clarify your legal options.

If you have lost your job, are owed wages, or have been denied benefits in California, you want to contact an experienced employment lawyer. At Stop Unpaid Wages, our experienced employment attorneys are ready to review your case and help you claim the wages and benefits you are legally owed. Contact us today at 424-781-8411 for a free consultation.