Recession and Wrongful Termination

At the time of writing this article, Miller Wilmers APC, a Los Angeles based employment and personal injury law firm, has continued to see a rise in wrongful termination suits as the economy worsens. Recession and the rise of wrongful termination and whistleblower retaliation lawsuits in California are two separate but related issues that can have a significant impact on employees and employers alike. We have previously published articles related to the correlation between age discrimination and a worsening economy as well as disability related discrimination in a worsening economy. As there are no signs of the recession coming to an end this coming year our employment lawyers feel it is necessary to emphasize how employers will take any opportunity to keep their doors open, including removing employees who create waves in the pool. 

When the economy enters a recession, employers may be more likely to engage in wrongful termination or whistleblower retaliation as a means of reducing costs. This can lead to an increase in the number of lawsuits filed by employees who have been wrongfully terminated or retaliated against for whistleblowing. This can be a costly situation for employers as well as for the employee, who might have to spend years litigating a case before getting any compensation and may be left without a job at a time they need one most.

California Employment Statistics

For California, being one of the largest economies in the United States, this is an even more critical issue, as the state has the largest number of employees (17,542,000)

and more businesses than any other state across several industries.

California also has some of the strongest protections for employees in the country, with laws that prohibit discrimination, harassment, and retaliation in the workplace with extremely particular wage and hour laws that many employers choose to ignore to run a more profitable shop. 

While recession and wrongful termination lawsuits or whistleblower retaliation lawsuits are two separate issues, they are closely related. When the economy enters a recession, employers may be more likely to engage in wrongful termination or whistleblower retaliation as a means of reducing costs, leading to an increase in the number of lawsuits filed by employees. However, through clear policies and proper training, employers can help to reduce their risk of such lawsuits.

Employees can protect themselves by understanding Company policies and procedures and going through the appropriate channels when bringing forward complaints. Employers are less likely to terminate effective employees or those employees who are most competent. While this is not a surefire way to maintain your employment, it will give you the best chance of success. If you believe you may have been subjected to a wrongful termination for whistleblowing or any other issue, contact our office at 661.312.8370 for a FREE Consultation.