Fired on Medical Leave—California Labor Law Violation?

Mission Viejo, CA Stan had to take time off work due to a serious health issue - he was diagnosed with bi-polar disorder. But just a few weeks after applying for medical leave he was terminated, an action that is likely a violation of the California Labor Law.

"I was offered a position as outside sales and territory manager with this company in 2005 and everything was great. I was making $70,000 per year until I got sick," says Stan, who also said he worked more than a year for the company before he took sick leave. "I was off work just a few weeks when my boss phoned and said, 'Your service is no longer needed, and I have to let you go.' I figured they had reviewed my doctor's medical certification of my disability and didn't like the bi-polar diagnosis."

In California and nationwide, it's illegal for an employer to terminate an employee for taking leave under the Family and Medical Leave Act (FMLA). As well, the California Family Rights Act was established to ensure secure leave rights for the employee's serious health condition. It would seem that Stan's employer has violated the California labor code, but state and federal laws differ, and they are complicated.

"I called the California labor board when I was terminated and found out that my employer had lied," says Stan. "He said that I didn't report back to work when my medical leave ended, but he neglected to say that I was still on medical leave when I was terminated. He also lied to the unemployment office so it took me a long time to sort that out. Finally I was able to collect unemployment benefits, but here is the weird thing: My boss continued to pay my medical premiums into 2008 - for more than a year after I was fired and I have no idea why…"

Perhaps Stan's boss had a reason for paying his premiums or maybe it was simply an oversight; whatever the reasoning, an experienced labor law attorney will be able to advise Stan - but Stan should have contacted an attorney sooner as the statute of limitations may apply.

If you think that your employer has violated California medical leave laws, you can file a complaint with the federal Department of Labor (DOL), Wage and Hour Division within two years of the violation or file a lawsuit in federal court. In California, however, you must file a complaint with the California Department of Fair Employment and Housing (DFEH) within one year of the violation, in order to be able to file a lawsuit under the California Family Rights Act (CFRA), in addition to the FMLA.

Contrary to what a lot of people believe, an employer in California is not legally required to provide paid vacation or sick leave to their employees. However, employees have a legal right to take some paid time off but it's paid out of the state's temporary disability program, which is funded entirely by mandatory withholdings from employees' paychecks.

This is where it gets complicated: an employer can terminate you while out on medical leave. Even though FMLA and its California counterpart, the CFRA, protects employees from being terminated because they take a medical leave, it does not totally prohibit termination of an employee while they are on a medical leave. According to one interpretation of the California labor law, what really matters is why you were terminated while out on a medical leave, not just that you happened to be out on a medical leave when you were terminated.

Fortunately, if you have to take medical leave, your job is generally protected by federal and California employment laws. These laws also prohibit employers from terminating or otherwise punishing employees who take protected medical or family leave. If you think you have been illegally terminated while on medical leave, you should speak with a California labor lawyer.