Typically, unemployment benefits protections for workers are quite broad because the unemployment compensation system exists for the sole purpose of providing such benefits to eligible workers. One exception to these broad protections is when an employee voluntarily quits their job. However, there is an "exception to the exception," if you will, in California - in California, an employee who quits their job for "good cause" may still qualify for unemployment benefits. California is a state that tends to define "good cause" rather generously. "Good cause" means any substantial or compelling reason for quitting, whether work-related or personal. I have seen many instances where workers quit due to a harassing or hostile work environment, and they still qualified and received unemployment benefits. Quitting because you were asked to do something illegal is not likely to bar you from seeking and receiving unemployment compensation benefits, provided that you meet the other requirements of the system (apply timely, are actively seeking work, etc.)
In addition, you may also have a claim against your former employer for constructive termination of your employment/whistleblower protection. Constructive termination claims exist for employees who are essentially forced to quit their job for some reason, usually a reason that violates a statute or some other public policy protecting workers. For an employer to essentially say, do this illegal thing or we will find someone else who will, would support such a claim. Of course, you would need marshall proof of everything you are alleging, so it would be important for you to have documented everything that occurred with this employer. For example, when you quit, did you provide a written reason that explained the problem? Are there any communications in writing by you or the employer discussing this issue? When you were told, do this or else, was that memorialized in any kind of writing? These documents can be relatively informal like a short email, notes, etc. and do not need to rise to the level of formal correspondence.
Answered on Jan 21st, 2019 at 10:17 AM