Wrongful Termination in California: What High Earners in Tech Need to Know Before Signing Anything

You’ve built a career that most people only read about in LinkedIn headlines. A senior role at a recognizable tech company. Equity. Bonuses. A compensation package that reflects years of expertise and performance. Then, without warning, HR calls you into a room and hands you a separation agreement with a deadline.

At that moment, the pressure to sign can feel overwhelming. You may be told the offer expires in a few days. You may worry about losing your benefits, your unvested equity, or your professional reputation. And you may not realize, until it is too late, that what just happened to you may not have been legal.

Wrongful termination is scary, but it’s key to note that California has some of the strongest employee protections in the country. But those protections only work if you know how to use them, and if you act before you sign away your right to do so.

What “At-Will” Employment Actually Means in California and What It Doesn’t

Most tech employees in California are employed “at-will,” which means an employer can terminate the relationship at any time, for any reason, or no reason at all. That’s the general rule. But the exceptions are significant, and they come up more often than many people realize.

California law prohibits employers from terminating employees for certain reasons, even within at-will employment.

If you suspect that your employer terminated you because of:

• Your age, race, gender, disability, national origin, religion, sexual orientation, or other protected characteristic
• Your decision to report discrimination, harassment, safety violations, or other unlawful conduct (retaliation)
• Your request for, or use of, legally protected leave such as FMLA, CFRA, or pregnancy disability leave
• Your refusal to participate in illegal activity at the direction of your employer
• Your filing of a workers’ compensation claim

For high-earning tech employees, the most common scenarios we see involve terminations that appear neutral on the surface. A “reduction in force,” a “reorganization,” or an alleged performance-based exit that is actually motivated by something the law prohibits. The severance package, and the urgency around signing it, is often part of that picture.

The Severance Agreement Playbook and Why It’s Designed to Work Against You

Severance agreements serve a clear purpose for employers: they exchange compensation for a general release of legal claims. By signing, you agree not to sue the company for any legal claims, including wrongful termination, discrimination, harassment, or wage violations.

These agreements are legal. But the way they’re presented often isn’t straightforward.

Here’s what you should know about how severance agreements containing a general release affects your rights:

You have more time than they imply.

Under the federal Older Workers Benefit Protection Act (OWBPA), employees 40 and older must be given at least 21 days to consider a severance agreement, and 7 days to revoke it after signing. In group layoffs, that window extends to 45 days. California law also imposes its own protections.

The amount offered may not reflect what you’re owed.

Severance is not synonymous with the full value of your claims. If your termination was unlawful, your potential range of recovery, if you were to prevail in court or arbitration, could include lost wages, future earnings, equity compensation, emotional distress damages, and in some cases, punitive damages. A severance offer may not fully compensate you for the harm you suffered. A reputable and experienced employment attorney could help you seek more in recovery.

Signing ends your options.

Once you sign a severance agreement containing a general release of claims, you may be forever precluded from asserting legal claims against the employer. This is why consulting an attorney before you sign, and not after, matters so much. An experienced California wrongful termination attorney can assess the circumstances of your departure and advise you on whether your potential claims are worth more than what’s offered.

High-Earner Considerations: Why Your Situation Is Different

Not all wrongful termination cases look the same. For executives, directors, VPs, managers, and senior individual contributors in the tech industry, the stakes and the legal landscape are distinct in a few important ways.

Equity compensation is a major variable.

If you were terminated before a vesting cliff or a significant equity event such as a scheduled vesting date, an acquisition, or an IPO, your total financial loss may be substantial. Whether accelerated vesting or other remedies are available depends heavily on your offer letter, equity agreement, and the circumstances of your termination.

Non-compete provisions deserve close attention.

In California, non-compete agreements are not enforceable. Make sure that there is not language in your severance agreement may may impose restrictions on where you can work. These provisions vary significantly and can affect your next role in ways that aren’t immediately obvious.

Patterns of discrimination are often subtle at this level.

For senior tech employees, discrimination and retaliation rarely look like overt misconduct. It may show up in how performance was evaluated over the preceding months, in who was included in key decisions, in the way a reorganization was structured, or in comments made in private settings. These patterns are harder to see in the moment, but are exactly what an employment attorney is trained to identify.

Steps to Take If You’ve Been Terminated or Fear You’re About To Be

The window immediately following a termination is both critical and time-sensitive. Here’s where to focus your attention:

• Do not sign anything before consulting an attorney. This is the single most important step. Even if the deadline feels real, you typically have more time than you’re being told, and the cost of signing prematurely can be permanent.
• Document everything you can remember. Dates, conversations, emails, performance reviews, feedback you received, and anything that seemed unusual in the weeks or months before your termination. Memory fades quickly, and these details matter.
• Gather documents. If you have personal copies of relevant communications or records (obtained through legitimate means, not in violation of any company policy), keep them. Do not delete anything.
• Understand your COBRA and benefits timeline. Your health coverage and other benefits have specific continuation deadlines. Make sure you understand what you’re entitled to and for how long.
• Consult with an employment attorney who handles high-stakes cases. Not all employment attorneys have experience with the complexity that comes with executive-level terminations, equity disputes, and nuanced discrimination claims. Look for someone with demonstrated experience in this area.

California’s Statute of Limitations: The Clock Is Running

One of the most important and most misunderstood aspects of California wrongful termination law is the deadline for bringing a claim. 

The timeline depends on the nature of your claim and the agency or court where you file, but in general:

• Discrimination and harassment claims under FEHA (California’s Fair Employment and Housing Act) must be filed with the California Civil Rights Department within three (3) years of the unlawful conduct.
• Federal discrimination claims under Title VII require a charge to be filed with the EEOC within 300 days.
• Other claims, including retaliation, wage and hour violations, and breach of contract, carry their own deadlines that vary depending on the specific theory.

Missing these deadlines can permanently bar a claim, regardless of how strong it is. This is another reason why early legal consultation, before you sign anything, and ideally within the first few weeks following your termination, is so important.

Speak With a California Wrongful Termination Attorney

If you’ve been terminated or believe you may be, TONG LAW is here to help. Attorney Vincent Tong represents senior professionals in tech and healthcare throughout California, including the Oakland and Sacramento areas, helping clients understand their rights and make informed decisions before signing anything. 

Contact our office to schedule a confidential consultation. There is no obligation, and the earlier you reach out, the more options you will have.

Frequently Asked Questions About Wrongful Termination in California

 1. Can I negotiate my severance agreement in California?

Yes. Severance agreements, like any contract, are negotiable, and employers frequently expect that negotiation may occur, particularly at the senior level. An attorney can help you identify what leverage you have, whether based on potential legal claims or the terms of your employment contract, and how to approach that negotiation strategically.

 2. What happens to my unvested equity if I’m terminated?

It depends on the terms of your equity agreement and the circumstances of your departure. In some cases, unvested equity is forfeited upon termination. In others, particularly where termination may have been unlawful, there may be grounds to argue for accelerated vesting or damages tied to the lost value. This is an area where the specifics of your agreements and situation matter enormously.

 3. I was told my position was eliminated in a layoff. Does that mean I have no recourse?

Not necessarily. While legitimate reductions in force are lawful, they can also be used as a pretext for unlawful termination, particularly when certain employees are disproportionately affected based on age, gender, race, or other protected characteristics. If the layoff targeted your position while retaining similarly situated employees who don’t share your protected characteristics, that pattern is worth examining.

 4. How long do I have to decide on a severance offer?

If you are 40 or older, federal law requires that you be given at least 21 days to consider the agreement, plus 7 days after signing to revoke it. Employers cannot shorten this window. Regardless of age, California law and your agreement’s specific terms may provide additional time. An attorney can help you understand the timeline that applies to your situation.