March 14, 2025

Can You Sue Amazon for Wrongful Termination in California?

Legally reviewed by: Jessica Anvar Stotz, JD, MBA

Short answer: Yes, Californians can sue Amazon for wrongful termination if they were fired for an illegal reason, such as discrimination, retaliation, or reporting safety violations.

What You Can and Cannot Sue Amazon For in California

Valid Grounds for Wrongful Termination Lawsuits

Discrimination

• Termination based on protected characteristics including race, color, national origin, religion, sex, gender identity, sexual orientation, age (40+), disability, medical condition, genetic information, marital status, or military/veteran status
• California’s Fair Employment and Housing Act (FEHA) offers broader protections than federal law

Retaliation

• Firing employees for reporting illegal activities or safety violations
• Termination after filing workers’ compensation claims
• Retaliation for reporting harassment or discrimination
• Punishment for taking legally protected time off

Breach of Contract

• Violation of written employment agreements
• Breaking promises made in employee handbooks
• Failing to follow Amazon’s documented disciplinary procedures
• Breaching implied contracts created through longstanding practices

Violation of Public Policy

• Termination for refusing to perform illegal acts
• Firing for exercising legal rights (jury duty, voting)
• Retaliation for reporting violations of law (whistleblowing)

Protected Leave Violations

• Termination for using California Family Rights Act (CFRA) leave
• Firing for taking pregnancy disability leave
• Dismissal for using sick leave or paid family leave
• Termination for military service-related absence

Grounds Unlikely to Support a Lawsuit

Performance-Based Termination

• Legitimate, documented performance issues
• Failure to meet established metrics and goals
• Poor attendance or tardiness (when properly documented)
• Violation of company policies (when consistently enforced)

Business Decisions

• Layoffs due to economic necessity
• Elimination of positions or departments
• Outsourcing or automation of job functions
• Closure of facilities or locations

Misconduct

• Termination for harassment or discrimination against others
• Dismissal for theft or fraud
• Firing for workplace violence or threats
• Termination for misuse of company resources

Probationary Period Dismissals

• Termination during established probationary periods
• Failure to meet initial hiring expectations
• Not passing training requirements

Non-Protected Personality Conflicts

• Disagreements with management style
• Personality clashes with supervisors
• Communication style differences
• Cultural fit issues (when not related to protected characteristics)

Amazon-Specific Considerations for Wrongful Termination Claims

Mandatory Arbitration Agreements

• Most Amazon employees sign mandatory arbitration agreements during onboarding
• These agreements typically waive the right to sue in court
• Cases are instead heard by a private arbitrator
• California’s AB 51 attempted to ban mandatory arbitration but faces legal challenges
• Recent Supreme Court decisions have generally upheld these agreements
• Arbitration often favors employers with less discovery and lower damages

Performance Management System

• Amazon’s documented “Unregretted Attrition” metrics and stack ranking
• Performance Improvement Plans (PIPs) used extensively as pre-termination documentation
• “Pivot” program for underperforming employees
• Focus on Leadership Principles in performance evaluation
• Amazon’s detailed documentation practices often build strong defenses against claims

Class Action Waivers

• Amazon’s employment agreements typically include class action waivers
• Employees must pursue claims individually rather than as a group
• Increases the financial burden on individual plaintiffs
• May make cases less attractive to attorneys working on contingency

Corporate Structure Complexities

• Multiple Amazon entities (Amazon.com, Amazon Logistics, fulfillment centers)
• Different policies across warehouses, corporate offices, and subsidiaries
• Joint employer issues with staffing agencies and contractors
• Determining the correct legal entity to name in a lawsuit

Internal Complaint Procedures

• Amazon’s Ethics Line and HR investigation processes
• Documentation of internal complaints critical for retaliation claims
• Appeal procedures for termination decisions
• Failure to utilize internal processes may impact legal claims

California-Specific Amazon Practices

• Differences between Amazon’s fulfillment center and corporate policies in California
• California operations subject to state-specific breaks and scheduling requirements
• Special considerations for delivery drivers and gig workers
• Regional management structure and decision-making authority

Steps to Take If Wrongfully Terminated by Amazon

Document Everything Immediately

• Save all termination paperwork and exit interview notes
• Preserve all performance reviews and feedback (positive and negative)
• Download copies of relevant emails, messages, and communications
• Collect witness information from supportive colleagues
• Take detailed notes about the termination conversation
• Save any evidence of discriminatory comments or treatment

Review Your Employment Documents

• Examine your employment contract or offer letter
• Review the Amazon employee handbook for termination policies
• Check for arbitration agreements and understand their implications
• Identify any promises made regarding employment terms
• Review signed confidentiality and non-compete agreements

File for Unemployment Benefits

• Apply promptly regardless of termination reason
• Amazon may contest your claim
• Appeal if initially denied
• Unemployment hearings can help gather evidence for your case
• Benefits can provide financial support during legal proceedings

File Administrative Complaints

• Submit a complaint with California’s Department of Fair Employment and Housing (DFEH) within 3 years
• File with the federal Equal Employment Opportunity Commission (EEOC) if applicable
• Request a “right to sue” letter which is required before filing a lawsuit
• Consider complaints with other agencies if relevant (OSHA, Labor Commissioner)
• Be aware these agencies may conduct their own investigations

Consult an Employment Attorney

• Seek an attorney with specific experience against Amazon
• Bring all documentation to your initial consultation
• Many attorneys offer free consultations for wrongful termination
• Discuss fee arrangements (contingency vs. hourly)
• Get a realistic assessment of your case’s strength and value

Preserve Digital Evidence

• Do not use Amazon-owned devices for any communications
• Avoid discussing your case on social media
• Do not delete any emails or messages related to your employment
• Back up important communications to personal storage
• Return all Amazon property as required to avoid counter-claims

Consider Arbitration Strategy

• Determine if your case must go through arbitration
• Understand arbitration costs and who bears them
• Research the designated arbitration provider
• Consider whether to challenge the arbitration agreement
• Prepare for a different process than traditional court litigation

Potential Outcomes and Damages in Amazon Wrongful Termination Cases

Financial Compensation

• Back Pay: Wages and benefits lost from termination date to judgment
• Front Pay: Future compensation if reinstatement isn’t feasible
• Lost Benefits: Value of health insurance, stock options, and retirement contributions
• Bonus Compensation: Lost performance bonuses and Amazon RSUs (Restricted Stock Units)
• Interest: Calculated on unpaid wages and other economic damages

Emotional Distress Damages

• Available under California FEHA claims (not typically in contract claims)
• Compensation for anxiety, depression, and psychological impact
• Generally higher in cases involving harassment or discrimination
• May require medical documentation or expert testimony
• Not subject to federal tax caps in California cases

Punitive Damages

• Available in cases of fraud, malice, or oppression
• Requires proving Amazon acted with knowing disregard of employee rights
• Typically capped at 9-10 times compensatory damages
• More likely in cases involving retaliation or discrimination
• Rarely awarded in arbitration proceedings

Attorney’s Fees and Costs

• Recoverable in discrimination, retaliation, and certain statutory claims
• Can significantly increase the value of smaller cases
• Often a key factor in settlement negotiations
• May be awarded even if you only prevail on some claims
• Can include expert witness fees and deposition costs

Reinstatement vs. Separation

• Reinstatement: Return to your position (rare in Amazon cases)
• Negotiated Resignation: Converting termination to voluntary resignation
• References: Neutral reference agreements
• Non-Disparagement: Mutual agreements not to speak negatively
• Continuation of Benefits: Extended health coverage or COBRA payments

Recent Amazon Settlements in California

• Warehouse worker discrimination cases: Approximately $50,000-$250,000
• Management-level wrongful termination: Approximately $100,000-$500,000
• Class settlements for systemic issues: Approximately $5-10 million for large groups
• Individual outcomes vary significantly based on position, tenure, and case strength
• Most settlements include confidentiality provisions

Tax Implications

• Wage damages are taxable as ordinary income
• Emotional distress damages not related to physical injury are taxable
• Punitive damages are always taxable
• Attorney contingency fees may be taxable as income to plaintiff
• Structured settlements can sometimes provide tax advantages

Non-Monetary Outcomes

• Revision of performance evaluation systems
• Policy changes at specific Amazon facilities
• Training requirements for managers
• Monitoring and reporting requirements
• Independent investigations of workplace practices

Contact a Wrongful Termination Attorney

Have questions about your potential Amazon wrongful termination case? Contact LawLinq to get a free consultation with some of the best wrongful termination attorneys in the state.