Administrative regulations may serve as source of fundamental public policy limiting right to discharge at-will employee

Green v Ralee Eng'g Co., 78 Cal. Rptr. 2d 16 (1998).

The California Supreme Court held that at-will employees may cite administrative regulations to show the constitutional or statutory basis of the public policy giving rise to their wrongful discharge claims.

Here, a quality control inspector for an airplane parts manufacturer was fired after objecting to his employer's alleged practice of shipping out parts that had failed inspection. He sued the employer, alleging wrongful termination. Plaintiff claimed his complaints served a broad public policy favoring aviation safety, thus entitling him to tort damages even though he was an at-will employee. Defendant argued it was entitled to discharge plaintiff because his termination did not violate any fundamental public policy embedded in either a statute or constitutional provision. In his opposition to summary judgment, plaintiffidentified several relevant Federal Aviation Administration (FAA) regulations. The trial court granted defendant summary judgment. An appellate court reversed.

Affirming the appellate court, the state high court noted that one of the primary reasons for requiring the public policy that gives rise to a wrongful termination action to have a basis in either constitutional or statutory provisions is to limit judicial policymaking. When courts find public policy in regulations enacted under statutory authority, however, they are not mistaking their own predilections for public policy, the court said. Rather, they are recognizing a public policy that the legislature has formulated and the executive branch has implemented.

The court stressed that employees alleging discharge for refusing to violate administrative regulations must also allege the regulations advance a substantial public policy goal. Here, the court noted, the FAA regulations promote the proper manufacture and inspection of component airline parts and concern airline safety, thus advancing an important public policy objective.

Accordingly, the court remanded.

Plaintiffs Counsel:

George E. Brownfield, North Hollywood, Cal. William C. Quackenbush, San Mateo, Cal.

An asterisk ( * ) appearing beside the name of plaintiff's counsel indicates that the attorney is an ATLA member. To obtain additional information about a case report, contact counsel through your ATLA membership directory.

Copyright Association of Trial Lawyers of America Dec 1998
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