Most states follow the employment-at-will doctrine, and employment for an indefinite term may be terminated at will and without cause. Absent a specific contract term to the contrary, this doctrine allows an employee to quit or be terminated without liability on the part of the employer or the employee, with or without cause.

But executive employees often have a written employment contract that provides for a more complex compensation structure—including incentives, bonuses, and severance pay—and limits the circumstances under which the executive may be fired or terminated to those situations in which the employer has cause for termination, as defined in the written employment agreement.

In California, like most states, the default employment relationship is at-will, meaning that either the employer or the employee can terminate the employment at any time, with or without cause or notice, unless there is a specific contract that states otherwise. However, there are exceptions to this doctrine that protect employees from wrongful termination, such as terminations that violate public policy, anti-discrimination laws, or retaliation for whistleblowing. For executive employees, it is common to have written employment contracts that detail more complex compensation structures and may restrict the conditions under which an executive can be terminated. These contracts typically include provisions for incentives, bonuses, and severance pay, and they define 'cause' for termination, which limits the employer's ability to terminate the executive without facing potential liability. Such contracts supersede the at-will doctrine and provide executives with greater job security and clear terms for termination and compensation.