Stevenson v. Superior Court

941 P.2d 1157, 97 Cal. Daily Op. Serv. 6918, 13 I.E.R. Cas. (BNA) 321, 97 Daily Journal DAR 11181, 66 Cal. Rptr. 2d 888, 1997 Cal. LEXIS 4979, 72 Empl. Prac. Dec. (CCH) 45,272, 74 Fair Empl. Prac. Cas. (BNA) 1623, 16 Cal. 4th 880, 1997 WL 526008
CourtCalifornia Supreme Court
DecidedAugust 27, 1997
DocketS052588
StatusPublished
Cited by245 cases

This text of 941 P.2d 1157 (Stevenson v. Superior Court) is published on Counsel Stack Legal Research, covering California Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stevenson v. Superior Court, 941 P.2d 1157, 97 Cal. Daily Op. Serv. 6918, 13 I.E.R. Cas. (BNA) 321, 97 Daily Journal DAR 11181, 66 Cal. Rptr. 2d 888, 1997 Cal. LEXIS 4979, 72 Empl. Prac. Dec. (CCH) 45,272, 74 Fair Empl. Prac. Cas. (BNA) 1623, 16 Cal. 4th 880, 1997 WL 526008 (Cal. 1997).

Opinions

Opinion

KENNARD, J.

California statutory law prohibits employers from discriminating against older workers (statutorily defined as workers over the age of 40) because of their age. Specifically, the Fair Employment and Housing Act (FEHA) (Gov. Code, § 12900 et seq.) makes it “an unlawful employment practice for an employer to refuse to hire or employ, or to discharge, dismiss, reduce, suspend, or demote, any individual over the age of 40 on the ground of age, except in cases where the law compels or provides for such action.” (Id., § 12941, subd. (a).)1 The FEHA defines an “employer” as a person “regularly employing five or more persons.” (Id., § 12926, subd. (d).)

[885]*885In Jennings v. Marralle (1994) 8 Cal.4th 121 [32 Cal.Rptr.2d 275, 876 P.2d 1074] (Jennings), we held that an older worker who has been discharged because of age by an employer having fewer than five workers (and thus not subject to the age discrimination prohibition of the FEHA) may not bring a tort claim for wrongful discharge in violation of public policy. But we specifically left for future determination the question whether an older worker may assert such a common law claim against an employer with five or more workers. (Id. at p. 130.) The issue we left open in Jennings we will decide here.

We conclude that, as applied to employers regularly employing five or more workers, the policy prohibiting employment discrimination against older workers satisfies each of the criteria this court has established as necessary to support a common law action for tortious wrongful discharge: The policy has been articulated in a statute (the FEHA), benefits society at large, is “substantial” and “fundamental,” and was well established at the time of the discharge here. We further conclude that, because the FEHA expressly does not preempt any common law tort claims, the FEHA’s age discrimination remedies are not exclusive and do not bar a tort claim for wrongful discharge in violation of the public policy against age discrimination.

I. Facts and Procedural History

Because this matter comes to us on demurrer, we take the facts from plaintiff’s complaint, the allegations of which are deemed true for the limited purpose of determining whether plaintiff has stated a viable cause of action. (Livitsanos v. Superior Court (1992) 2 Cal.4th 744, 747 [7 Cal.Rptr.2d 808, 828 P.2d 1195].)

When she was discharged at the age of 60, plaintiff Joan Stevenson (Stevenson) had worked as an employee of real party in interest Huntington Memorial Hospital (the Hospital) for over 30 years, performing her job competently and receiving commendations and pay increases. During 1992, shortly before her discharge, Stevenson had been on a medical leave of absence approved by the Hospital. According to the Hospital’s personnel policies and procedures manual, upon return from an approved medical leave of absence for occupational or nonoccupational injury or illness an employee [886]*886is guaranteed reinstatement to the same job classification and shift. The manual further states that if it is “not possible for business reasons to guarantee reinstatement to the same job classification and shift, an employee will be reinstated to any available job . . . which, in the judgment of the hospital, the employee is qualified to perform” and “will be given the opportunity to be reassigned to that same job classification and shift when next available.”

On November 6, 1992, the Hospital informed Stevenson that her right to reinstatement would be guaranteed until December 31, 1992. On an unspecified day during November 1992, Stevenson notified the Hospital that she was ready to return to work. At that time, the Hospital told Stevenson that she would not be allowed to return to her original job classification and shift, and it denied her reinstatement “to another job classification and shift with opportunity for later reassignment to her original job classification and shift.”

The Hospital terminated Stevenson’s employment “some time after December 31, 1992.” It did so “because of [Stevenson’s] age and to deny her the opportunity to obtain benefits to which she was entitled and eligible as a 30-year employee.”

On December 30, 1993, Stevenson filed a wrongful termination action against the Hospital. Her first amended complaint, which is the pleading at issue here, contains allegations grouped into four alleged causes of action: (1) breach of employment contract; (2) wrongful discharge in violation of a public policy against terminating an employee for taking an approved medical leave; (3) wrongful discharge in violation of a public policy against age discrimination; and (4) breach of the implied covenant of good faith and fair dealing.

The Hospital demurred to Stevenson’s first amended complaint in its entirety. Regarding the first and fourth causes of action (the contract claims), the Hospital asserted that Stevenson had not sufficiently alleged the existence of a written, oral, or implied contract. As to the second and third causes of action (the tort claims), the Hospital maintained that fundamental public policy was not violated by either age discrimination in employment or termination of employment for taking medical leave. These tort claims, according to the Hospital, were also barred because Stevenson had not exhausted her statutory remedies under the FEHA.

The trial court overruled the Hospital’s demurrer with respect to the contract claims. As to the tort claims for wrongful discharge in violation of [887]*887fundamental public policy, the trial court sustained the demurrer without leave to amend. Stevenson petitioned the Court of Appeal for a writ of mandate to set aside this latter part of the trial court’s order.

The Court of Appeal issued an alternative writ but ultimately denied Stevenson’s petition. The court devoted a large portion of its opinion to the central question of whether Stevenson’s wrongful discharge claim was supported by a fundamental public policy against age discrimination in employment. Although recognizing that we had expressly left this issue open in Jennings, supra, 8 Cal.4th 121, the Court of Appeal nonetheless viewed the logic of Jennings as leading ineluctably to the conclusion that age discrimination in employment does not violate any fundamental public policy of this state, no matter how many employees an employer regularly employs. The Court of Appeal ended its opinion by “respectfiilly urg[ing] the Supreme Court to explore further this troubling area of the law at its next opportunity.” We granted Stevenson’s petition for review.2

II. Discussion

A. Origins of the Tortious Discharge Claim

In California, an employment relationship may generally be terminated by either party “at will.”3 This means that, unless they agree otherwise, either party may terminate the employer-employee relationship without cause. (Lab. Code, § 2922.) On occasion, employers have abused the at will relationship by discharging employees for reasons contrary to public policy as expressed in statutory or constitutional mandates.

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941 P.2d 1157, 97 Cal. Daily Op. Serv. 6918, 13 I.E.R. Cas. (BNA) 321, 97 Daily Journal DAR 11181, 66 Cal. Rptr. 2d 888, 1997 Cal. LEXIS 4979, 72 Empl. Prac. Dec. (CCH) 45,272, 74 Fair Empl. Prac. Cas. (BNA) 1623, 16 Cal. 4th 880, 1997 WL 526008, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stevenson-v-superior-court-cal-1997.