Understanding Constructive Discharge in California

Overview

In most wrongful termination cases, the employee has been fired or laid off by the employer. However, there are circumstances in which an employee resigns - but the resignation is treated by law as if the employee had been terminated. This legal doctrine is known as constructive discharge (also referred to as constructive termination or constructive dismissal).

Constructive discharge recognizes that in some situations, an employer can effectively force an employee out by making working conditions so intolerable that a reasonable person would feel compelled to resign. When this occurs, the resignation may be treated as an involuntary termination for legal purposes, potentially giving rise to the same claims that would be available in a traditional wrongful termination case.

This guide provides a general overview of constructive discharge law in California. It does not constitute legal advice.

The Legal Standard

The California Supreme Court addressed the standard for constructive discharge in Turner v. Anheuser-Busch, Inc. (1994) 7 Cal.4th 1238. Under this standard, a constructive discharge occurs when an employer's conduct effectively forces an employee to resign. To establish a constructive discharge claim, the employee must generally show:

1. Intolerable working conditions. The employer created or knowingly permitted working conditions that were so intolerable or aggravated that a reasonable employer would realize a reasonable person in the employee's position would be compelled to resign.

2. The employer's conduct or conditions must violate public policy or breach an express or implied contract. Constructive discharge claims generally require an underlying legal violation - such as discrimination, harassment, retaliation, or a breach of contract - that caused the intolerable conditions.

3. Resignation was caused by the intolerable conditions. The employee must show that the working conditions were the actual reason for the resignation.

The standard is objective: the question is not merely whether the particular employee found the conditions intolerable, but whether a reasonable person in the same situation would have felt compelled to resign.

What May Constitute Intolerable Conditions

Whether working conditions are sufficiently intolerable to support a constructive discharge claim depends on the totality of the circumstances. Examples of conditions that courts have found may support such claims include:

• Persistent and severe harassment based on a protected characteristic that the employer failed to correct
• Significant and unjustified changes to job duties, pay, or working conditions following the employee's exercise of a protected right
• A pattern of retaliatory actions after the employee complained about unlawful conduct
• Demanding that the employee participate in illegal activity
• A hostile work environment that the employer knew about and failed to remedy despite complaints

Conversely, conditions that are merely unpleasant, difficult, or generally stressful - without an underlying legal violation - are generally insufficient. Ordinary workplace friction, personality conflicts, general dissatisfaction with management, or isolated incidents that do not rise to the level of a legal violation typically do not support a constructive discharge claim.

The Relationship to Other Claims

Constructive discharge is not a standalone cause of action. Rather, it is a legal theory that converts a voluntary resignation into an involuntary termination for purposes of bringing other employment claims. Common underlying claims that may be paired with a constructive discharge theory include:

• Wrongful termination in violation of public policy - If the intolerable conditions resulted from discrimination, harassment, retaliation, or another public policy violation, the employee may bring a constructive termination claim under this doctrine.

• FEHA claims - Constructive discharge may arise in the context of discrimination, harassment, or retaliation claims under the Fair Employment and Housing Act. In Steele v. Youthful Offender Parole Board (2008) 162 Cal.App.4th 1241, the court recognized constructive discharge as a basis for FEHA claims.

• Breach of contract - If the employer's conduct violated an express or implied employment contract, the constructive discharge may support a breach of contract claim.

• Labor Code violations - In some cases, constructive discharge may relate to wage theft, failure to provide required accommodations, or other Labor Code violations.

The Employee's Obligation Before Resigning

California courts have considered whether an employee has an obligation to exhaust available remedies before resigning. While there is no absolute requirement, an employee's failure to take advantage of available internal complaint procedures or other remedies before resigning may be relevant to the analysis of whether the conditions were truly intolerable.

In Valdez v. City of Los Angeles (1991) 231 Cal.App.3d 1043, the court noted that an employee's failure to use available complaint mechanisms may undermine a constructive discharge claim. However, this is a factor in the analysis - not a rigid prerequisite - and may be weighed against other evidence, including whether the employer's complaint process was known to be ineffective or whether the employee had already complained without result.

Statute of Limitations

The statute of limitations for a constructive discharge claim depends on the underlying cause of action. For example:

• FEHA claims must generally be filed with the CRD within three (3) years of the constructive discharge (i.e., the date of resignation)
• Breach of written contract claims generally must be filed within four (4) years
• Breach of oral contract claims generally must be filed within two (2) years
• Wrongful termination in violation of public policy claims generally must be filed within two (2) years

The limitations period typically begins to run on the date the employee resigns, as that is the date of the constructive discharge.

Potential Remedies

Because constructive discharge converts a resignation into a termination for legal purposes, the remedies available are generally the same as those available in a traditional wrongful termination case. Depending on the underlying claim, these may include:

• Back pay and lost benefits
• Front pay
• Compensatory damages for emotional distress
• Punitive damages (in certain cases)
• Reasonable attorneys' fees and costs

Practical Considerations

Constructive discharge claims can be difficult to establish because the employee bears the burden of proving that the conditions were objectively intolerable and that the resignation was compelled by those conditions. Some practical considerations include:

• Documentation. Employees who believe they may be experiencing intolerable conditions are generally well-served by documenting the conditions, their complaints, and the employer's responses (or lack thereof).

• Internal complaints. While not strictly required, making use of the employer's complaint procedures before resigning may strengthen a constructive discharge claim.

• Timing. Resigning immediately after a single incident, without allowing the employer an opportunity to address the situation, may weaken a constructive discharge claim unless the incident was sufficiently severe.

• Consultation. Because the legal standard for constructive discharge is demanding, individuals considering resignation due to intolerable working conditions may benefit from consulting with an employment attorney before resigning.

Conclusion

Constructive discharge is a significant but demanding legal doctrine that allows employees who were effectively forced to resign to pursue the same types of claims as employees who were directly terminated. The doctrine requires proof of intolerable working conditions, an underlying legal violation, and a causal connection between the conditions and the resignation. Because these claims are highly fact-specific, individuals with questions about constructive discharge are encouraged to consult with a qualified employment law attorney.

This guide is provided for general informational and educational purposes only. It does not constitute legal advice, and no attorney-client relationship is created by reading this material. Laws and regulations may change, and the application of law depends on the specific facts of each situation. Consult a qualified attorney for advice regarding your particular circumstances.