Glossary

Employment Law Terms in Plain English

Legal letters are written for lawyers. This page translates. Every entry gives you the definition, why it comes up in your case, and where to go deeper.

A to Z

ADEA

The Age Discrimination in Employment Act, the federal law protecting employees 40 and older from age discrimination.

Why it matters: California’s own law is broader, so most age cases here are brought under FEHA instead. The ADEA still matters for employers with 20 or more employees. Discrimination

Adverse Action

Any employer action that would deter a reasonable employee from asserting their rights, including firing, demotion, cut hours, a bad transfer, or a sudden write up.

Why it matters: It is one half of every retaliation and discrimination claim. The other half is a protected trait or protected activity. Retaliation

At-Will Employment

The default rule that either side can end employment at any time, for any lawful reason or none at all.

Why it matters: It is what employers hide behind, but it has real exceptions: a protected trait, protected activity, or public policy. Wrongful Termination

ABC Test

The three part test under AB 5 and Labor Code 2775 that presumes you are an employee unless the hiring entity proves all three prongs.

Why it matters: It is how misclassified contractors recover overtime, breaks, and expenses. Misclassification

Accommodation

A change to a job or schedule that lets an employee with a disability or a pregnancy related condition keep working.

Why it matters: Refusing a reasonable one, or skipping the interactive process, is its own FEHA claim. Disability

Arbitration Agreement

A contract clause routing disputes to a private arbitrator instead of court.

Why it matters: Many are challengeable, and sexual harassment claims can be kept out entirely under the federal EFAA. Forced arbitration

Back Pay

Lost wages and benefits from the unlawful act through to judgment.

Why it matters: It is usually the largest single piece of economic damages. What decides case value

Berman Hearing

The Labor Commissioner’s administrative wage claim hearing, faster and less formal than court.

Why it matters: It is a no lawyer required option for smaller wage claims, though an employer appeal restarts it in court. Forum explainer

CFRA

The California Family Rights Act, giving up to 12 weeks of job protected leave at employers with five or more employees.

Why it matters: It covers millions of employees the federal FMLA, with its 50 employee threshold, does not. Leave of absence

Class Action

One lawsuit brought on behalf of many employees harmed the same way.

Why it matters: It turns a small individual wage loss into a case big enough to force change. Class Action and PAGA

Constructive Discharge

When conditions are made so intolerable that a reasonable person is forced to quit. The law treats it as a firing.

Why it matters: Quitting can still preserve a termination claim, but timing and documentation decide it. Constructive Discharge

Contingency Fee

A fee paid as a percentage of the recovery, so there is no upfront cost and no fee unless you win.

Why it matters: It is how employees afford to take on well funded employers. How our fees work

CRD, Formerly DFEH

The California Civil Rights Department, the agency that enforces FEHA and issues right to sue letters.

Why it matters: FEHA claims must pass through it before court. That requirement is called exhaustion. Forum explainer

Demand Letter

A pre lawsuit letter setting out the claim and a settlement figure.

Why it matters: Many cases resolve here, before anything is filed. Timeline

Deposition

Sworn, out of court testimony taken during discovery.

Why it matters: Your deposition is the biggest day of the discovery stage, and your lawyer prepares you for it. Timeline

Disparate Impact

A neutral looking policy that screens out a protected group at a higher rate. No intent is required.

Why it matters: It is the route for AI hiring claims and layoff selection claims. AI hiring discrimination

Disparate Treatment

Being treated worse because of a protected trait.

Why it matters: It is the classic discrimination theory, proven with comparators, timing, and remarks. Discrimination

EEOC

The federal Equal Employment Opportunity Commission, the federal mirror of the CRD.

Why it matters: In California you rarely file here first, and its deadlines never govern a FEHA claim. Forum explainer

EFAA

The federal Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act, passed in 2022.

Why it matters: It lets you void an arbitration clause for a sexual harassment claim and go to court instead. Sexual harassment

Emotional Distress Damages

Compensation for the psychological harm of unlawful treatment. Uncapped under FEHA.

Why it matters: They are often a major part of a discrimination or harassment recovery. What decides case value

Essential Job Functions

The core duties a job actually requires.

Why it matters: Employers inflate them to defeat accommodation claims. The real posting and prior practice rebut that. Disability

Exempt Employee

An employee excluded from overtime who meets both a duties test and a salary floor, which is $70,304 in 2026.

Why it matters: Below that salary the exempt label fails and overtime is owed. Misclassification

Exhaustion

The rule that some claims must go through an agency before court.

Why it matters: It applies to FEHA claims through the CRD, but not to wage claims or Labor Code 1102.5 claims. Forum explainer

FEHA

The California Fair Employment and Housing Act, the state’s core anti discrimination and harassment law.

Why it matters: It beats federal law with a five employee threshold, uncapped damages, and a three year filing window. Discrimination

FMLA

The federal Family and Medical Leave Act, giving 12 weeks of leave at employers with 50 or more employees.

Why it matters: California’s CFRA covers far smaller employers, so the state claim is usually stronger. Leave of absence

Front Pay

Future lost earnings awarded when reinstatement is not practical.

Why it matters: For long tenured or hard to replace employees, it can exceed back pay. What decides case value

Hostile Work Environment

Harassment severe or pervasive enough to alter your working conditions.

Why it matters: After SB 1300, a single serious incident can be enough. Hostile Work Environment

Interactive Process

The good faith back and forth an employer must run to find a disability accommodation.

Why it matters: Skipping it is a standalone FEHA violation under Government Code 12940(n). Disability

Itemized Wage Statement

The detailed pay stub required by Labor Code 226.

Why it matters: Defective stubs carry their own penalties and often expose bigger wage violations. Wage and hour

Liquidated Damages

A fixed, statutorily doubled amount, as in minimum wage and equal pay claims.

Why it matters: It can double your unpaid wage recovery. Equal pay

Litigation Hold

A notice requiring the employer to preserve evidence once a claim is anticipated.

Why it matters: Destroying evidence after a hold can hand you a powerful advantage. Evidence checklist

LWDA

The Labor and Workforce Development Agency, which receives PAGA notices.

Why it matters: A PAGA case starts with an LWDA notice and a 65 day waiting period. Class Action and PAGA

Meal and Rest Premium

One hour of pay at the regular rate owed for a missed, late, or short meal break, under Labor Code 226.7. A separate hour is owed for a missed rest break, and both can be owed on the same day.

Why it matters: It stacks daily and adds up faster than most employees expect. Break calculator

Mediation

A voluntary settlement session run by a neutral third party.

Why it matters: Most employment cases resolve at or after mediation. Timeline

Misclassification

Wrongly labeling an employee an independent contractor or an exempt employee.

Why it matters: It strips overtime, breaks, and benefits all at once, which makes it a stacked claim. Misclassification

OWBPA

The Older Workers Benefit Protection Act, the federal law setting the rules for severance offers to employees 40 and older.

Why it matters: It gives you at least 21 days to consider the offer and 7 days to change your mind after signing. If the paperwork skips those windows, the age claim you signed away may still be alive. Severance review

PAGA

The Private Attorneys General Act, which lets one employee sue for Labor Code penalties on behalf of the state and coworkers.

Why it matters: After the 2024 reform, employees keep 35 percent of penalties and the filing window is one year. Class Action and PAGA

PDL

Pregnancy Disability Leave, up to four months of job protected leave per pregnancy at employers with five or more employees, with no tenure requirement.

Why it matters: It stacks on top of CFRA bonding leave. Pregnancy disability leave

Pretext

A cover story. The reason an employer gives for firing or demoting someone when it is not the real reason.

Why it matters: Most cases turn on it. Shifting explanations, a reason that does not match the record, or a rule enforced only against you are the usual signs. Wrongful termination

Protected Activity

Doing something the law shields, such as reporting harassment, asking about pay, requesting leave, or refusing illegal work.

Why it matters: It is the trigger for every retaliation claim. Retaliation

Protected Trait

A characteristic the law protects, including race, sex, age 40 and over, disability, religion, and national origin.

Why it matters: Discrimination is only unlawful when a protected trait drove it. Discrimination

Punitive Damages

Damages meant to punish malicious, oppressive, or fraudulent conduct, under Civil Code 3294.

Why it matters: They can dwarf the economic loss in an egregious case. What decides case value

Regular Rate of Pay

The true hourly rate used for overtime, including nondiscretionary bonuses and commissions, not just the base wage.

Why it matters: Employers who pay overtime on the base rate underpay every overtime hour. Overtime calculator

Retaliation

Punishing an employee for protected activity.

Why it matters: It is the most common and one of the most winnable employment claims, and it stands even if the underlying complaint is not proven. Retaliation

Right to Sue Letter

The CRD’s permission slip to file a FEHA lawsuit. It is not a merit finding.

Why it matters: It starts a one year fuse to file in court, and missing it ends the claim. Right to Sue Letter next steps

Severance Agreement

A payment offered in exchange for a release of claims.

Why it matters: Do not sign on the deadline. A review can surface a claim worth more than the offer. Severance review

Statute of Limitations

The deadline to bring a claim.

Why it matters: Different claims from one firing carry different clocks, and the shortest live one sets the pace. Deadline table

Summary Judgment

The employer’s motion to end a case before trial.

Why it matters: Surviving it tends to spike settlement value. Timeline

Tameny Claim

A tort claim for a firing that violates a fundamental public policy.

Why it matters: It carries tort damages, but there is generally no Tameny Claim against a public entity. Wrongful Termination

Tolling

A pause on a deadline under narrow, fact specific doctrines.

Why it matters: Severance talks and HR investigations do not toll your clock. Never plan around it. Deadline table

Waiting Time Penalty

Up to 30 days of your daily wage for a late final paycheck, under Labor Code 203.

Why it matters: It sits on top of the wages owed and runs on calendar days. Waiting time calculator

WARN Act

The Worker Adjustment and Retraining Notification Act, which requires 60 days of written notice before a mass layoff or a plant closing.

Why it matters: California’s version is stricter than the federal one. If the notice never came, you may be owed pay and benefits for the days you should have had. Wrongful termination

Whistleblower

An employee who reports a reasonably suspected legal violation, protected under Labor Code 1102.5.

Why it matters: The employer carries a heavy burden, clear and convincing evidence, to justify any adverse action. Whistleblower

Wrongful Termination

A firing that breaks the law, because of a protected trait, protected activity, or public policy.

Why it matters: At will does not make an illegal firing legal. Wrongful Termination

Hearing These Words From Your Employer?

A severance agreement, a performance improvement plan, an arbitration “reminder,” or an HR “investigation” each signal a moment to get advice rather than wait and see.

Not sure how this applies to your situation? Talk it through with an employment lawyer. The call is free and confidential.

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