When companies set up disciplinary procedures, they usually
aim to create a sense of fairness and order in the workplace. In California,
where employment laws are some of the most complex in the nation, following
your own internal procedures isn’t just good practice—it can be critical. California Business Lawyer & Corporate Lawyer highlights that working closely with an experienced employer whistleblower defense lawyer can be crucial when internal discipline disputes arise and escalate into legal challenges. Even though
California is an at-will employment state, skipping or ignoring your
established policies can open the door to serious legal problems and unexpected
consequences. This article takes a closer look at what happens when employers
don’t follow their own disciplinary procedures, the laws that come into play,
and how both employers and employees can protect themselves.
Why Discipline Procedures Matter at Work
Discipline procedures are supposed to help employers handle
issues like misconduct, poor performance, or violations of company policies in
a structured way. Typically, these procedures involve steps like verbal
warnings, written warnings, performance improvement plans (PIPs), and
eventually, if needed, termination. The Nakase Law Firm shares that their employer defense attorneys often encounter cases where unclear or inconsistently applied disciplinary procedures complicate otherwise straightforward employment matters. Having clear procedures helps
businesses defend themselves against claims of unfair treatment,
discrimination, or wrongful termination. It also reassures employees that
decisions are not made randomly or unfairly.
While no law requires companies to implement these systems,
once they do, there’s an expectation—especially among employees—that they will
be followed.
The Relationship between At-Will Employment and Company Policies
Most employees in California work under what's known as
"at-will" employment. This means that either the employer or the
employee can end the relationship at any time, for almost any reason. However,
even in an at-will context, things get complicated when an employer has made
promises—either explicitly or through past practices—about how discipline will
be handled.
In the famous case Guz v. Bechtel National, Inc., the
California Supreme Court explained that while company policies and handbooks
don't automatically form contracts, they can create implied agreements if
employees reasonably rely on them. So even when an employer believes an
employee is at-will, inconsistently applying or ignoring established
disciplinary procedures could be interpreted as breaking an implied contract.
What Happens When Employers Ignore Their Own Procedures
When a company does not stick to its own disciplinary
policies, several types of legal trouble can emerge:
Wrongful Termination Lawsuits
If an employee believes they were fired without the company
following its own disciplinary process, they may have grounds for a wrongful
termination claim. Courts look at whether there was an implied contract based
on the employer's promises and practices.
Breach of Good Faith and Fair Dealing
Even without a written contract, every employment
relationship includes an implied promise that neither side will act in bad
faith. Ignoring discipline procedures, especially when those procedures were
heavily emphasized during employment, could be seen as a breach of this good
faith obligation.
Discrimination and Retaliation Claims
When a company applies its discipline policies unequally—for
example, treating employees differently based on race, gender, age, or
disability—it can give rise to serious discrimination or retaliation claims
under California’s Fair Employment and Housing Act (FEHA).
Wage and Hour Problems
Disciplinary actions that affect an employee's pay or
working hours must be handled carefully. If wage deductions or unpaid
suspensions are not properly documented and justified, the company could face
wage and hour violations.
Unemployment Insurance Issues
Skipping disciplinary steps can even make it harder for an
employer to argue that a former employee was fired for misconduct, which
affects unemployment insurance disputes.
The Business Costs of Not Following the Rules
Legal risks are just the tip of the iceberg. Companies that
ignore their own discipline procedures often face business problems as well:
Losing Trust and Damaging Morale
Employees expect a basic level of fairness. When management
ignores its own policies, trust disappears quickly. Employees may feel
betrayed, leading to low morale, decreased productivity, and even higher
turnover.
Creating the Appearance of Favoritism
If disciplinary procedures are applied inconsistently, it
can look like management is playing favorites. This can fuel workplace tensions
and even lead to hostile work environment claims.
Higher Litigation Costs
Even if an employer eventually wins a lawsuit, defending
against claims costs time, money, and energy. Cases involving allegations of
unfair discipline are often harder to dismiss quickly.
Poor Management and Oversight
Without consistent procedures, supervisors may not know how
to handle problems effectively. This leads to inconsistent decision-making and
confusion across departments.
How California Courts Look at These Cases
When employees sue over an employer’s failure to follow
disciplinary procedures, California courts look at several factors:
- The wording in the employee handbook and any company
policies
- Past disciplinary practices and whether they followed the
policies
- Emails, memos, or oral statements made to employees
- Whether policies were described as mandatory steps or
flexible guidelines
- Whether the employer applied the rules fairly across all
groups of employees
If a court believes that the employer led employees to
reasonably expect certain procedures would be followed, it can work against the
employer, even if the employee was technically at-will.
How Employers Can Stay Out of Trouble
Here are a few practical steps employers can take to avoid
the risks associated with ignoring their own discipline policies:
Reinforce At-Will Status in Writing
Every handbook and offer letter should make it clear that
employment is at-will, and that policies are guidelines, not contractual
promises.
Draft Discipline Policies Carefully
Companies should leave room for flexibility, allowing
management to skip steps or modify procedures depending on the circumstances.
Train Supervisors Thoroughly
Managers need to understand how discipline policies work and
why it's important to apply them consistently.
Keep Good Records
When disciplinary action is taken, it should be documented
carefully and in detail. Written records can be powerful evidence if a claim
ever arises.
Update Policies Regularly
Company policies should be reviewed and updated as needed to
reflect changes in the law and workplace realities.
What Employees Should Do if Procedures Aren’t Followed
If you're an employee who feels that your employer didn’t
follow the stated discipline procedures, you can take a few important steps:
- Review your company handbook and any written policies
- Keep your own documentation of incidents and
communications
- Raise concerns internally through HR or grievance
procedures, if available
- Consider consulting with a qualified employment attorney
if you believe you were treated unfairly or wrongfully terminated
Understanding your rights—and the company’s obligations—is
the first step toward protecting yourself in these situations.
Final Thoughts
Even though California is known for its at-will employment
laws, employers can create serious legal exposure by failing to follow their
own discipline procedures. As California Business Lawyer & Corporate Lawyer
Inc. explains, working with an experienced employer whistleblower defense
lawyer can help companies navigate these challenges and protect their
interests.
For businesses, the best approach is to treat discipline
policies seriously: draft them carefully, train staff thoroughly, and apply
them consistently. For employees, knowing what procedures are in place—and insisting
they are followed—can provide critical protection in case of a dispute. In the
end, following the rules benefits everyone, creating a workplace where trust,
fairness, and accountability can thrive.
