Legal Question in Employment Law in California

Can an employee be terminated for refusal to perform unethical acts?

I work as an unlicensed legal professional in the legal department of a very large insurance company. We have recently been told that it is mandatory for us to assist and advise clients, prepare them for trial and attend small claim hearings with them. We must also stand with them and answer and argue any points with the judge. Since the beginning of 2001, paralegals are now governed in accordance with the Business & Professions Code, which states that paralegals are not allowed to give advice, etc. Advising clients and actually attending hearings and arguing matters before a judge is against the Paralegal Canon of Ethics. A paralegal can be fined $2,500 for the unauthorized practice of law and it is considered a criminal offense. Can an employee be terminated for not agreeing to provide these services to clients if believed to be unethical?


Asked on 4/25/02, 12:30 am

2 Answers from Attorneys
Michael Cortson Law Office of Michael D. Cortson, Esq.

Re: Can an employee be terminated for refusal to perform unethical acts?

Which carrier is this? I know of several who do this. Report them to the State Bar 800-843-9053. I would bet the carrier will deny everything. I have seen them do it in trial with their own lawyers. I worked with carriers doing defense work for 15 years and they turn my stomach. You can call me at 574-340-3890 as I need more details.

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Answered on 4/25/02, 4:11 pm
Martin Lathrop Russakow, Ryan & Johnson

Re: Can an employee be terminated for refusal to perform unethical acts?

Well, if your are employed in Ca, of course this is an at-will state and any non-contract employee can be fired for just about anything so long as they are not a member of a protected class. I recommend you whistle blow them to the CA Insurance commisioner and the state bar. If they fire you for that then you will be protected by statute because they will have fired you in retaliation for your whistle blowing. If you have any further questions, contact a labor lawyer, and do not violate any ethical or legal mandates. You can also contact the state bar ethical hot line.

Thank you for your question.

Martin

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Answered on 4/26/02, 9:30 pm


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