Is it legal to terminate every employee when money is stolen from a store?
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Is it legal to terminate every employee when money is stolen from a store?
At the store I work at 4 people have keys to the store. The manager and 3 supervisors. The 3 supervisors closed the store and the deposit was thrown in a locked drawer instead of the safety deposit box like it should have. Over the course of the night, $1400 was stolen, which was not all the money. The company is not going to hold an investigation but just terminate everyone who was working that night. Is this legal?
Asked on November 21, 2011 under Employment Labor Law, California
Answers:
M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
Do you have an employment contract or union agreement prohibiting your discharge under the circumstances? Does this type of dismissal violate existing company policy? Was there some form of actionable discrimination present in your treatment? if not, then while your employer's action appears unfair, it is perfectly legal.
The fact is that an employer has a great deal of discretion in setting the term and conditions of employment; this includes just when, how and who is terminated. An employee can fire an employee for any reason or no reason whatsoever. Again, it's the law. So while your situation is unfortunate you really have no claim for wrongful termination.
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