California is technically an at-will employment state. But practically speaking, that designation comes with so many asterisks that employers who treat at-will as a blank check to terminate anyone at any time are setting themselves up for costly litigation.

Here are five things every California employer needs to understand about the at-will doctrine:

1. At-Will

Employers in California should periodically review their employee documentation and record retention policies to ensure compliance with state laws. Below are five critical areas to audit as of 2025:

1. Are Employee Time Records Maintained for at Least Four Years?

California law requires employers to track hourly employees’ start and stop times, meal periods, and total