Laid Off During Medical Leave: Legal or Illegal in California?

“We’re Restructuring — Unfortunately, Your Position Is Affected”

Few phone calls are more shocking than this one:

“As you know, we’ve been restructuring. Unfortunately, your position has been eliminated. Today will be your last day.”

For many employees, those words come while they’re still on medical leave — recovering from surgery, managing a serious health condition, or caring for a family member.

Being laid off during leave isn’t always illegal. But in California, it is often a red flag that something isn’t right.

Can You Be Laid Off While on CFRA or FMLA Leave?

Under both the California Family Rights Act (CFRA) and the federal Family and Medical Leave Act (FMLA), employers are generally required to:

• Restore employees to the same or a comparable position at the end of protected leave; and
• Avoid treating employees on leave less favorably than those who are not on leave.

However, CFRA and FMLA do not guarantee absolute immunity from layoffs or restructuring.
An employer may lawfully terminate an employee on leave if:

• The company can prove that the employee would have been laid off even if they had not taken leave; and
• The layoff is part of a legitimate, nondiscriminatory business decision (such as a plant closure, department elimination, or company-wide reduction in force).

The key question is not simply whether you were on leave, but whether your leave or medical condition was a motivating factor in the decision.

Warning Signs of an Illegal Layoff During Leave

From a legal perspective, certain facts can suggest that a layoff during medical leave was not purely about business needs.

Red flags include:

• You are the only person — or one of very few — selected for layoff in your department;
• Your duties are quickly reassigned to someone else with a similar title or less seniority;
• Your employer had previously expressed frustration about your leave or medical condition;
• The timing is suspicious — for example, termination occurs right after you request an extension or submit updated restrictions; or
• No objective criteria (such as performance or seniority) seem to explain why you were chosen.

These factors may support claims under:

• CFRA/FMLA interference or retaliation;
• FEHA disability discrimination or failure to accommodate; or
• Wrongful termination in violation of public policy.

How FEHA Disability Protections Apply

Even if your employer claims a legitimate “layoff” or “restructuring,” they must still comply with California’s Fair Employment and Housing Act (FEHA), which prohibits discrimination based on disability and medical conditions.

Under FEHA, your employer must:

• Engage in a good-faith interactive process regarding your restrictions; and
• Provide reasonable accommodations unless doing so would create undue hardship.

If you were singled out for layoff after requesting leave, submitting medical restrictions, or asking for accommodations, FEHA may have been violated — especially if:

• Other employees with similar roles were kept;
• Your job duties continued under a different title; or
• The “layoff” explanation doesn’t match what actually happened.

Case Example: “We Eliminated Your Role” — But the Work Continued

Consider an employee who goes out on CFRA leave for surgery.

While they are out, the employer announces a “department restructuring” and claims the employee’s role has been eliminated.

However, after the layoff, the company:

• Reassigns the same tasks to a new hire or a coworker with less experience;
• Keeps the same job title but changes it slightly; or
• Posts a new job opening that closely matches the “eliminated” position.

In that scenario, the layoff explanation may be a pretext — a cover story — for disability discrimination or retaliation for taking leave.

Case Example: True Reduction in Force vs. Targeted Termination

On the other hand, there are times when a layoff during leave is part of a genuine reduction in force.

For example:

• A company closes an entire branch or facility where you worked;
• An entire department is eliminated due to outsourcing or automation; or
• Multiple employees, not just those on leave, are laid off based on neutral, documented criteria.

In these cases, the legality of the layoff may depend on whether:

• The selection criteria were applied consistently; and
• Your leave or medical condition played any role in the decision.

Your rights don’t disappear just because the employer uses the word “layoff.”

Documentation That Can Strengthen Your Case

If you suspect your layoff during medical leave was unlawful, certain documents can be especially important:

• Emails or texts about your leave request, approvals, and extensions;
• Medical certifications and doctor’s notes you provided;
• Company announcements about restructuring or layoffs;
• Lists of who was laid off versus who was retained; and
• Any prior performance reviews, awards, or promotions.

Together, these can help show whether the “layoff” explanation lines up with reality — or whether your medical leave put a target on your back.

What If You Were Offered a Severance Agreement?

Employees are often presented with severance agreements when laid off during leave.
These agreements might offer money in exchange for:

• Signing a release of claims against the company;
• Agreeing to confidentiality or non-disparagement clauses; and
• Waiving your right to sue for wrongful termination or discrimination.

Before signing anything, it’s wise to have an employment attorney review the agreement.
In some cases, the severance offered is far less than what your legal claims may be worth. More on wrongful termination claims is available in Eldessoukylaw’s guide to filing a wrongful termination lawsuit.

Deadlines Matter: Don’t Wait Too Long

Claims related to leave violations, disability discrimination, and wrongful termination have strict deadlines.

Waiting too long to act can limit your options, even if your rights were clearly violated.

How Eldessouky Law Can Help

At Eldessouky Law, we represent employees who were:

• Laid off while on CFRA/FMLA leave;
• Selected for “restructuring” shortly after requesting medical leave or accommodations;
• Denied reinstatement after leave ended; or
• Offered severance agreements under suspicious circumstances.

We examine the timing, the company’s stated reasons, and how other employees were treated to determine whether your layoff was lawful or a cover for discrimination or retaliation. We also frequently handle parental and medical leave retaliation cases.

Discuss Your Layoff During Medical Leave with an Attorney

If you were laid off while on medical leave, you may be dealing with more than just a business decision — your rights under CFRA, FMLA, and FEHA may have been violated. Call Eldessouky Law at 213-788-7887 or reach out through our contact page for a free consultation. We can help you understand whether your layoff was legal, and what remedies may be available if your medical leave or disability status played an unlawful role in your termination.