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What You Need To Know About Implied Contracts

Posted by Eric Kingsley | Oct 15, 2019 | 0 Comments

One of the ways to prove wrongful termination is with an implied contract.  When an employer does not abide by the terms of implied or oral contract and terminates an employee without “good cause”, it could be considered wrongful termination and you can take legal action in California.

What is an implied contract?

More common than a written contract, an implied contract is usually created by the circumstances of your employment or oral statements made by your employer.

How Are Implied Contracts Created?

There are several ways an implied contract can be created. Here are the most common:

  • Long-term employment/years of service
  • Positive job evaluations
  • Performance based raises and bonuses
  • Progressive discipline policies that indicate the steps taken prior to being fired for inappropriate or non-satisfactory work.  For example, you will receive an oral warning, then a second written warning prior to termination.
  • Benefit programs

What Is “Good Cause”?

An implied contract essentially protects you from being terminated without “good cause”. Good cause is typically defined as having a non-discriminatory and legitimate reason for firing an employee such as misconduct or illegal drug use.

If you feel that you have experienced wrongful termination here in California, please call us to discuss your situation toll-free at 888-500-8469 or locally at (818) 990-8300. We know the law and can help you understand your rights. Our firm, Kingsley & Kingsley, is located in Encino, CA (Los Angeles area).

About the Author

Eric Kingsley

Eric B. Kingsley is a 2023 "Best In Law" Award winner and has litigated over 150 class actions. He is also an AV peer rated attorney and a prolific speaker at various seminars on employment law.


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