Promise to Terminate for Just Cause

You can negate the at-will employment relationship and create a promise to terminate only for “just cause” through a written or oral contract. “Cause” means a fair and honest cause or reason that you act on in good faith.¹ For example, in Stokes v. Dole Nut Company, a California Court of Appeal ruled that an employee creating a competing business constitutes a lack of loyalty and creates conflicts of interest that are just cause for termination.²

Employees seek attorneys to represent them when they feel they have been treated unfairly. By treating all employees fairly, you have a better chance of avoiding wrongful termination litigation. “Fairness” means making reasonable work rules, applying them evenhandedly,