Holding Corporations Liable for Wrongful Termination

In California, a corporate employer cannot be liable for punitive damages for wrongful termination unless an officer, director or managing agent:

• Had advance knowledge of the unfitness of the employee who wrongfully terminated the claimant and employed him/her with a conscious disregard of the rights or safety of others.
• Authorized or ratified the wrongful conduct for which the damages are awarded.
• Was personally guilty of oppression, fraud or malice.¹

In White v. Ultramar, Inc., the California Supreme Court ruled that the mere ability to hire and fire employees does not elevate a supervisory employee to a position of managing²