California, United States of America
The following excerpt is from Dzhanikyan v. Liberty Mut. Ins. Co., B261113 (Cal. App. 2016):
Dzhanikyan's next cause of action is for breach of contract to not terminate without cause. To have good cause, an employer must have "fair and honest reasons, regulated by good faith on the part of the employer, that are not trivial, arbitrary or capricious, unrelated to business needs or goals, or pretextual. A reasoned conclusion, in short, supported by substantial evidence gathered through an adequate investigation that includes notice of the claimed misconduct and a chance for the employee to respond." (Cotran v. Rollins Hudig Hall Internat., Inc. (1998) 17 Cal.4th 93, 107-108.)
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