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What Is an Adverse Employment Action in California?

An adverse employment action is any employer decision that negatively affects the terms, conditions, or privileges of employment. In California, adverse actions play a central role in discrimination, retaliation, and wrongful termination claims. Reach out to our experienced employment attorney in Los Angeles for a free case evaluation with our legal team today.

Common Examples of Adverse Employment Actions

An adverse employment action often involves a clear and measurable impact on employment status. Common examples include:

  • Termination or constructive discharge
  • Demotion or reduction in job title
  • Decrease in salary, commissions, or bonuses
  • Reduction in work hours or shift changes that affect pay
  • Suspension without pay
  • Denial of promotions or advancement opportunities
  • Unjustified negative performance evaluations
  • Reassignment to less desirable duties
  • Removal from leadership roles or high-profile projects

In retaliation cases, even actions that appear minor may qualify if they would discourage a reasonable employee from asserting legal rights. If you were wrongfully terminated due to adverse employment action, call our proven Los Angeles wrongful termination lawyer to discuss your legal options today.

How California Courts Define an Adverse Employment Action

Courts focus on whether the employer’s conduct materially affected the employee’s compensation, job responsibilities, advancement opportunities, or overall working conditions. A significant reduction in duties, loss of prestige, or denial of promotion may qualify even if salary remains the same. The key question is whether the action had a real and tangible impact on the employee’s employment.

Adverse Employment Actions in Discrimination Cases

Under California’s Fair Employment and Housing Act (FEHA), employees must show that the employer took an adverse action because of a protected characteristic such as race, disability, gender, age, religion, or national origin. The law protects employees from actions that materially affect compensation, opportunities, or working conditions.

For example, terminating an employee shortly after disclosing a disability may qualify as an adverse action. Denying a promotion due to pregnancy or reducing hours after learning of a medical condition may also support a claim. Courts evaluate whether the action had a tangible impact. A lateral transfer with no change in pay may still qualify if it significantly diminishes prestige, responsibility, or future advancement.

Adverse Employment Actions in Retaliation Cases

In Los Angeles retaliation claims, California courts apply a slightly broader standard. An action qualifies as adverse if it would deter a reasonable person from engaging in protected activity, such as reporting harassment or requesting accommodations. Examples of retaliatory adverse actions include:

  • Termination after filing a complaint.
  • Demotion following a whistleblower report.
  • Increased discipline after requesting medical leave.
  • Denial of overtime opportunities after reporting wage violations.

The timing between the protected activity and the employer’s action often plays a key role.

What to Do If You Experience an Adverse Employment Action

When an employer makes a decision that materially alters compensation, responsibilities, or advancement opportunities, taking the following steps is critical:

Document the Employment Change

  • Preserve written warnings, revised job descriptions, updated schedules, and pay records.
  • Save emails, text messages, or internal communications discussing the decision.
  • Create a clear timeline showing when the action occurred and what events preceded it.

Evaluate the Circumstances

  • Identify whether the action followed a complaint, accommodation request, or other protected activity.
  • Compare how similarly situated employees were treated under similar circumstances.
  • Review whether company policies were applied consistently or selectively enforced.

Speak to an Employment Attorney in Los Angeles

  • A discrimination attorney in Los Angeles can assess whether the action qualifies as legally adverse under California law and determine whether discrimination, retaliation, or another violation may be involved. 
  • They will help you gather evidence to build your claim, prevent procedural mistakes, and clarify available remedies.

It is highly recommended to seek legal counsel before signing severance agreements or other employment documents to ensure your rights remain protected.