“Constructive discharge” or “constructive termination” is yet another often misunderstood term in California employment law. Under California law, an employee is considered constructively discharged when his employer either created or knowingly permitted that employee to be subjected to objectively intolerable working conditions, causing that employee to resign. This then effectively becomes a wrongful termination.
“Objectively intolerable” is a high standard that few workplace situations meet. Simply being treated in a hurtful or unfair manner will not be sufficient to make a constructive termination claim. Receiving an unfair performance review, being demoted or being falsely accused of certain misconduct at workplace, being yelled at, being micromanaged, or even belittled at workplace, is usually not enough to make a constructive discharge case either. Likewise, the fact that you suffer from serious emotional or mental issues as a result of the way you have been treated at work, does not mean that you may bring a constructive discharge claim. You may, however, be able to file a workers compensation claim for the psych injury suffered, assuming it is sufficiently severe.
To make a valid constructive termination claim, the working conditions must be such that a reasonable person in that employee’s condition would feel like he has no other reasonable choice but to quit. Here are several typical examples of situations that do give rise to a potential constructive termination claim:
(1) violence or threats of violence at workplace, egregious sexual or racial harassment, serious safety violations by the employer that put the resigning employee’s life or health at risk, etc.
(2) intolerable working conditions caused by the employer’s refusal to accommodate an employee’s disability, which leaves no viable choice to that employee except to quit his job. Again, simply waiting a bit longer than expected for an accommodation or not receiving a perfect accommodation to a disability will not suffice to support a constructive termination claim. An employee will have to show that he explored pretty much every possible way to stay at work, but the employer refused to do what it could and should have done in order to allow the employee to continue being employed, given that employee’s medical limitations.
(3) Not being paid full wages. Employees who resign due to being paid below minimum wage, or consistently not being paid overtime wages due may also have a valid constructive termination claim.
If you consider resigning from your employment and you believe that you will have a valid constructive discharge claim, you should discuss your employment situation and your plans to quit with an experienced employment attorney before you actually resign. This will help you determine whether resigning is in fact your best option considering all the unique circumtances of your situation and if so – when and how it’s best to resign. Many people resign mistakenly believe that they will be able to bring a constructive discharge, to only later learn that there isn’t a sufficient basis for making a case.