Legal Question in Employment Law in California

Of course, it is unlawful for an employer to fire an employee due to their pregnancy. But your wife has some serious issues that she should be concerned about.

If she knowingly worked "under the table", as you say, she (and you) have cheated the state and federal government of income taxes that should have been deducted from her paycheck and reported each year. If she decides to now claim she was employed, she is running the risk of federal prosecution for tax evasion. The two of you need to give some serious thought about whether you want to risk this kind of exposure.

Tax law implications aside, your wife MAY have a claim for both wrongful termination if the actual reason for her termination was due to her pregnancy, as well as potential wage and hour claims including overtime, wage statement requirements, etc. (depending on more details).

Regardless of whether or not your wife was paid in cash (assuming what you mean by "under the table"), she is still protected by California Labor Law if she qualifies as an employee of her former employer.

Your wife should consult both a local employment lawyer as well as a reputable tax professional to discuss her options, rights and obligations stemming from this situation.

http://www.SoCalLaborLawyers.com

Like the previous attorneys answered, if there is evidence linking termination with pregnancy or having a child, this will give rise to a claim for pregnancy discrimination and other violations.

Undoubtedly, the employer will argue that the woman was terminated due to her performance, and it will be crucially important to show that the employer's proffered reasons for termination are not true.

Thanks, and feel free to follow up.

Arkady Itkin

San Francisco & Sacramento Employment Lawyer

http://www.arkadylaw.com