How to Terminate an Employee the Right Way: A California Employer Checklist

In California, termination is one of the highest-risk moments in the employment relationship — not just because of the conversation itself, but because of the legal obligations that attach the moment employment ends. Labor Code Sections 201–203 require the final paycheck to be ready at the time of termination for involuntary separations. Timing that looks suspicious relative to protected activity creates retaliation exposure. And for larger layoffs, the California WARN Act may require advance notice. Done well, a termination can be handled with dignity and legal protection. Done poorly, it becomes a lawsuit.

After 15+ years in HR — including handling terminations at Fortune 100 companies and advising California small businesses through some of their hardest moments — here is the checklist I walk clients through.

Before any termination conversation happens, ask: if this employee filed a complaint with the California Civil Rights Department (CRD) or a lawsuit tomorrow, could we defend this decision?

That means:

• Documentation exists — written warnings, performance improvement plans, records of prior conversations
• The process was consistent — similar conduct or performance issues have been handled the same way for other employees
• The timing is not suspicious — the termination does not follow closely on the heels of protected activity: a harassment complaint, a CFRA or FMLA leave request, a workers' compensation claim, or a report of a Labor Code violation

California is an at-will employment state, but at-will does not mean consequence-free. Retaliation claims are among the most common and most expensive employment claims in California. If the timing of a termination is close to any protected activity, pause and consult with HR or employment counsel before proceeding.

Have everything ready before the meeting:

• Termination letter stating the effective date and reason (keep it factual and brief)
• Final paycheck — under Labor Code Section 201, this must be ready and in hand at the time of termination for involuntary separations. It must include all earned wages, accrued and unused vacation (California treats accrued vacation as earned wages), and any other compensation owed
• COBRA notice and benefits continuation information (required within specific timeframes)
• California EDD unemployment insurance information
• Any separation agreement, if applicable
• Return of company property checklist

Do not mail the final check. It must be physically available at the time of the meeting.

If your termination involves a mass layoff, relocation, or plant closure, California's WARN Act (Labor Code Section 1400 et seq.) may require 60 days' advance written notice to affected employees, the Employment Development Department (EDD), and local workforce agencies. The California WARN Act applies to employers with 75 or more employees and covers layoffs of 50 or more employees within a 30-day period.

Federal WARN applies to employers with 100 or more employees. If either threshold applies, consult employment counsel before proceeding.

Before the meeting, work with IT to:

• Prepare to disable system access at the time of the meeting
• Preserve any relevant data or communications
• Arrange for the return of company devices

If the employee has access to sensitive systems, client data, or confidential information, timing the access revocation with the meeting is important.

• Day of week: Tuesday through Thursday is generally better than Monday or Friday. Ending someone's employment on a Friday afternoon — when they cannot reach HR, their bank, or support resources — is unnecessarily hard.
• Time of day: Earlier in the day gives the employee time to process and make calls.
• Location: A private office or conference room. Never a public space.
• Who is in the room: The direct manager and an HR representative. No audience.

This is not the time for small talk. Within the first 30 seconds, the employee should know why they are there.

A clear, direct opening: "I need to share some difficult news. We have made the decision to end your employment, effective today."

State the reason simply and factually. Keep it to two or three sentences. Avoid:

• Apologizing excessively (it sends mixed signals and can be used against you)
• Over-explaining or justifying at length
• Getting drawn into an argument about the decision

The decision has been made. The meeting is to communicate it, not relitigate it.

After delivering the news, pause. Let the employee react. Some people go quiet. Some cry. Some get angry. Your job is to remain calm, compassionate, and steady.

Acknowledge what they are feeling: "I know this is hard to hear." Then move to the practical next steps.

Walk through:

• Final paycheck — hand it to them now
• Benefits continuation (COBRA timeline — employees have 60 days to elect)
• Return of company property
• Reference policy
• Any severance or separation agreement details

Provide everything in writing so they do not have to remember it in a moment of shock.

Unless there is a specific security concern, allow the employee to collect their personal belongings and leave with their dignity intact. Do not have security escort them out in front of colleagues unless it is truly necessary.

After the employee has left, communicate to the team briefly and professionally. You do not owe anyone an explanation of the reason, but leaving a vacuum of information invites speculation. Something simple: "[Name] is no longer with the company. We wish them well. Here is how we will handle their responsibilities in the short term."

Write a brief summary of the termination meeting — who was present, what was said, how the employee responded, what was provided. File it with the employee's records. This documentation is your defense if a CRD complaint or lawsuit follows.

For voluntary resignations and some involuntary separations, exit interviews yield valuable information about your organization. Consider having someone other than the direct manager conduct it.

The legal and procedural elements of termination matter enormously. But so does how the person in that chair feels when they walk out the door. They may have given years to your organization. They have a family, a mortgage, a sense of identity tied to their work.

You can be legally protected and still be kind. In fact, the terminations that go most smoothly — the ones that do not become lawsuits or CRD complaints — are almost always the ones where the employee felt treated with respect, even in a hard moment.

If you are navigating a difficult termination or want to review your offboarding process, I am here to help.

Marlene Solis is the founder of Solis Consulting Management and has 15+ years of HR experience handling complex employee relations and terminations in California. Reach her at [email protected] or 909-660-2372.

This article is for general educational purposes only and does not constitute legal advice. California employers should consult the California Department of Industrial Relations (DIR), the California Civil Rights Department (CRD), and qualified employment counsel for guidance specific to their organization.