There's a certain level of unethical behavior in termination that can lead to a successful termination lawsuit even in an at-will state like California. Outrigh

There's a certain level of unethical behavior in termination that can lead to a successful termination lawsuit even in an at-will state like California. Outright bad-faith conduct still violates the implicit covenant of good faith and fair dealing, though it's a fairly high bar to be held in violation. Cases where it's been found in the past include terminating an employee in a way calculated to harm the employee maximally, due to a boss settling a personal vendetta and being intemperate enough to say so; and engaging in a pattern of firing people just before promised benefits vest, in which case the company can be found to have been falsely promising benefits it never intended to deliver. Hiring your wife as a CFA to cover up questionable dealings seems like it might be leaning in that direction...