Whistleblowers in California play a vital role in reporting suspected violations of law, which may include, but are not limited to, unsafe, illegal, or unethical practices that affect the public, workplace, or environment. Nevertheless, whistleblowing is often accompanied by fear that you could face retaliation, such as loss of employment, harassment, or blacklisting.

Fortunately, California law offers strong protections to individuals who report misconduct. Whistleblower laws provide legal protections to employees who report labor violations, environmental hazards, or public health threats to shield them from retaliation, such as termination or demotion.

You are not alone if you believe you have been punished for doing the right thing. At Stop Unpaid Wages, we have experienced attorneys who can help you assert your legal rights if you believe you have faced retaliation for whistleblowing.

An Overview of Whistleblowing and Retaliation

A whistleblower is an employee or contractor who reports illegal, unethical, or harmful actions by their organization. It is a bold step that helps uphold the rule of law and protect the public in both the government and private sectors.

Whistleblowing may be internal (reporting misconduct to someone within the organization, such as a supervisor or the human resources department) or external (reporting to government agencies such as Cal/OSHA or the Labor Commissioner). California law protects whistleblowers regardless of whether they report internally or externally.

The California law applies a standard of reasonable belief. You do not need to be sure that a violation occurred, just that you reasonably believe a law, rule, or regulation has been broken. Even if your report is wrong, you are covered.

Whistleblower protections also apply when reporting suspected violations, even if someone else has already made a report. Every report puts pressure on action and leaves a record of misconduct.

Whistleblower Risks and Barriers

Whistleblowing can be a devastating personal and professional experience, even with legal protections in place. Retaliation, such as dismissal, demotion, or blacklisting, can occur and cause lasting career and financial harm.

Court cases may take years to resolve, and whistleblowers who experience termination may face prolonged unemployment or career disruption.

There is also a heavy emotional price. Most whistleblowers experience isolation, stress, and even mental health conditions such as anxiety or PTSD. A significant percentage of whistleblowers experience harassment after reporting misconduct, underscoring the need for strong legal protections.

Major obstacles you could face as a whistleblower include unclear reporting systems and the fear that reporting will not lead to any change. Employers may also retaliate through pretextual investigations or increased scrutiny that discourages employees from coming forward. In most cases, legal interventions often go into effect after retaliation has occurred, making timely legal guidance especially important for preserving your rights.

Employer Retaliation Strategies

• Subtle and Overt Retaliation

Retaliation may be direct, such as firing, pay reduction, or demotion, or more indirect, such as:

• Negative performance reviews at short notice

• Exclusion or isolation in projects

• Excessive micromanagement

• Refusal of resources or training

Examples include unfair monitoring and digital retaliation, such as excessive surveillance of communications.

Such strategies may accumulate and strengthen a retaliation claim. It is essential to document all incidents, no matter how minor.

Constructive Discharge in Law

Sometimes, employers create intolerable working conditions that compel whistleblowers to resign. This may be considered constructive discharge under California law and is treated as a termination. The conditions must be so intolerable that a reasonable person would feel compelled to resign.

Employers can deliberately cause such conditions through subtle retaliation in whistleblower cases, and a so-called voluntary resignation can be considered a wrongful termination in the eyes of the law.

Whistleblower Protections Legal Foundations

Several state and federal legislations provide whistleblower protection in California. The central goal is encouraging employees to report legal violations without fear of punishment.

Important California laws are:

• The primary whistleblower protection law is Labor Code 1102.5

• Labor Code 98.6: It addresses wage and hour claims

• Labor Code 6310: It safeguards whistleblowers of health and safety issues in the workplace

• Government Code 8547: This law applies only to employees of the state government

Employees who report financial or securities fraud are also given protection under federal laws such as the Sarbanes-Oxley Act and Dodd-Frank Act.

Overall Classifications of Protected Activities

California statutes provide extensive protection of whistleblower activities. They include the following:

Reporting Violations to the Authorities

You are shielded when you report what you reasonably feel is a legal infraction. This protection is regardless of whether you report internally (as an example, to a supervisor or HR) or externally (for example, to a government agency).

Declining to Take Part in Unlawful Acts

You are also protected when you refuse to follow an order that would result in illegal activity. This allows employees to take action before any harm occurs, not just after the fact.

The Use of Constitutional Rights

There is no punishment for exercising other legal rights. This involves making a claim for workers' compensation, taking protected leave, or making a discrimination claim under the California Fair Employment and Housing Act (FEHA).

Protections against Internal vs. External Reporting

The California law, particularly Labor Code 1102.5, safeguards internal and external reports to the same extent. You are not required to report internally before reporting to an external agency. Internal reporting may demonstrate good faith and allow the company to take action, but it is not legally mandated.

External reporting is the most appropriate alternative in severe cases, for example, in cases of corruption or the threat of destroying evidence. A whistleblower attorney can advise you on the best and safest action.

Future Employment Protections Expansion

California law also prohibits retaliation in future employment decisions based on a person’s whistleblowing activity, even after they have left the job, although such cases can be challenging to prove. This provision helps prevent blacklisting and protects an employee’s future career prospects.

Personal Responsibility beyond Employers

California's laws are also accountable to individuals and not only companies. For example, under Government Code 8547, individuals who retaliate against state employees may face personal liability, including potential fines or, in rare cases, criminal penalties. This ensures that supervisors and managers cannot act as though the company shields them.

Such wide protection, even to future employment and against personal retaliation, shows the strong interest of California in defending whistleblowers who blow the whistle to do the right thing.

California Whistleblower Laws

California has several laws that protect whistleblowers. Every law addresses certain forms of wrongdoing and protects various categories of employees. Understanding which law applies is essential to protecting one’s rights.

General Whistleblower Protection: Labor Code 1102.5

The primary whistleblower law in California is Labor Code 1102.5. It shields the majority of the public and private workers against retaliation when they report the violation of rules or regulations.

The statute generally applies to employees of public and private entities, though its application to independent contractors can depend on the circumstances.

Employees are protected under the law in the following situations:

• Reporting unlawful actions to an internal authority (such as a supervisor or HR department) or an external government agency (such as Cal/OSHA or the Labor Commissioner).

• Refusing to participate in illegal or criminal activities when instructed by an employer or supervisor.

• Reporting what they reasonably suspect indicates a violation, whether or not it is incorrect.

Even employees whose job includes reporting violations, such as compliance officers, are protected from retaliation.

Notably, the employees are safeguarded regardless of whether whistleblowing is a job requirement.

Lawson Case and the Burden of Proof

The Lawson v. PPG case set an important legal precedent for whistleblower protections in California. Under this ruling:

The employee must show that their whistleblowing contributed to the employer’s decision to take adverse action (such as firing or demotion).

Then, the burden shifts to the employer, who must prove, by clear and convincing evidence, that they would have taken the same action regardless of the whistleblower’s report.

This standard strengthens whistleblower protections by making it easier to demonstrate that retaliation occurred.

Protections for Potential Whistleblowing

Employers are not allowed to retaliate on the assumption that an employee may report something in the future. The law also protects employees even if no complaint is ultimately filed.

As an example,

At work, John observes the illegal dumping of chemicals and reports it to the authorities. Several weeks later, he is dismissed on poor performance grounds. He has a good retaliation claim under LC 1102.5 since he made a protected disclosure and was terminated soon afterwards.

Labor Violations: Labor Code 98.6

Wage and Hour Problems

Labor Code 98.6 shields those workers who report violations of wage-related rules, such as:

• No overtime or low wages

• Illegal deductions

• Not allowed to take rest or meals

• Misclassification as an exempt or a contractor

Presumption of Retaliation

There is a rebuttable presumption of retaliation if adverse action occurs within 90 days of a protected complaint under Labor Code 98.6. The employer should then demonstrate that that was not the case and that they could have reacted in the same way with the employer despite their whistleblowing.

Extended Protection

The law also secures:

• Job applicants who complained to previous employers

• Whistleblowers’ relatives

As an example,

Maria has a 50-hour workweek and is compensated for 40 hours. She is transferred to a night shift after filing a complaint about unpaid overtime. Because the transfer occurred within 90 days of her complaint, a presumption of retaliation arises, and the employer must justify the action.

Workplace Safety: Labor Code 6310

Health and Safety Reports

Labor Code 6310 covers employees who report unsafe working conditions or engage in safety-related activities, which include:

Reporting to the employer, union, or Cal/OSHA

Membership of safety committees

Reporting a hazardous environment

The protection is granted even when no formal safety violation is discovered, provided the report was made in good faith.

Anticipatory and Family Protections

Employees are also safeguarded when their employer suspects they may report a safety problem. Reports made by an employee’s family members are also protected from employer retaliation under this law.

Public Employees: Government Code 8547

California Whistleblower Protection Act (CWPA)

CWPA provides special protections to state employees who report improper governmental activity, which includes:

• Legal violations

• Misuse of taxpayers’ money

• Fraud, misuse of power

• Threats to the community’s security

You can make a confidential report to the California State Auditor. If you experience retaliation, you can file a complaint with the State Personnel Board (SPB), which handles such cases.

As an example,

Janet Keyzer revealed unethical practices in a prison research study. Although she reported the truth, she was marginalized, and her husband was dismissed. Her successful lawsuit demonstrates the CWPA’s power to hold public institutions accountable for retaliation.

Associated Whistleblower Laws

FEHA’s Anti-Retaliation Provisions

The Fair Employment and Housing Act (FEHA) of California prohibits retaliation against anyone who opposes discrimination or harassment. Such misconduct reporting is covered by FEHA and LC 1102.5.

California False Claims Act (CFCA)

The CFCA allows whistleblowers (or relators) to report government fraud and bring qui tam lawsuits. In the event of success, the relator can get 15 and 50 per cent of the recovered money. CFCA also shields workers against retaliation for reporting such fraud.

Sarbanes-Oxley (SOX) (For Employees Of Publicly Traded Companies)

SOX safeguards the employees who blow the whistle on securities fraud or other financial misconduct. It also does not allow retaliation for engaging in investigations or whistleblowing on fraud involving the SEC or shareholders.

Legal Action and Complaint Procedures

Whistleblowing may be intimidating, especially when faced with retaliation, but California law offers apparent legal alternatives. There are two principal routes that whistleblowers can take:

• A civil lawsuit

• An administrative complaint to a state agency.

These options are critical to understand in order to defend your rights adequately. It is also essential to have information on deadlines so as not to be unable to file your complaint.

Legal Options for Victims of Retaliation

A decision to file a lawsuit or an administrative complaint is based on the law that was violated, the nature of the retaliation, and the whistleblower's intentions. An experienced employment attorney should help you make this decision.

Lawsuit in California Superior Court

The most comprehensive remedy is a civil lawsuit. Whistleblowers are entitled to damages in terms of lost wages, emotional distress, and, in extreme cases, punitive damages. This route permits a jury trial but is more complicated, costly, and time-consuming, and may take years to resolve.

Filing Administrative Complaints

Alternatively, the whistleblowers may file a complaint with a state agency. This route is faster, less formal, and more affordable. If the agency finds the complaint valid, it may order remedies such as reinstatement and back pay. Sometimes, this administrative process must be completed before a lawsuit can be filed.

Process of Labor Code 1102.5

Whistleblowers may submit their complaints to the California Labor Commissioner's Office and Division of Labor Standards Enforcement (DLSE) under the Labor Code (LC) 1102.5. This starts by filing a Retaliation Complaint Form (RCI 1). When accepted, the officials will conduct an investigation, interviews, and even a settlement conference.

Remedies to the whistleblowers can be reinstatement, back pay, and civil penalties. You can file a lawsuit under Labor Code 1102.5 without first filing a complaint with a government agency. However, if you bring a similar claim under the Private Attorneys General Act (PAGA), you must first file with the Labor and Workforce Development Agency (LWDA).

Steps 6310 and 98.6 of the Labor Code

Complaints of retaliation based on wage and hour (LC 98.6) or workplace safety (LC 6310) are also within the jurisdiction of the Labor Commissioner and have similar procedures. Regarding safety-related claims, the whistleblowers can also file with Cal/OSHA. In case of dismissal, you can address the Department of Industrial Relations Director.

Government Code 8547 Procedure of State Employees

If you are a state employee, the first step is to file your complaint under Government Code 8547 with the State Personnel Board (SPB). The complaint must be filed within 12 months of the final retaliatory act and should detail the protected disclosure and the retaliation. Although the SPB may rule against the employee, they may still file a suit in a court.

Statute of Limitations

Time is of the essence. Failing to act within the required time limits can invalidate your claim. Different claims have different limited times in which you can file a complaint. They include:

• LC 1102.5: You only have 3 years to file in court

• LC 98.6 and 6310: For this act, you only have 6 months of administrative complaints and 3 years of suits

• GC 8547: The law allows for 12 months to file a complaint with SPB

Comparing Whistleblower Retaliation and Public Policy Wrongful Termination Claims

When an employee faces retaliation, there are two main legal paths they can take. In addition to statutory claims of whistleblower protection, the most frequently used legal tactic is to assert a claim of wrongful termination in contravention of a public policy. It is essential to understand how these two legal claims work individually and together to build a strong case.

Key Differences

The principal distinction is the origin of the legal right:

1. Whistleblower Retaliation

This is a statutory claim based on laws enacted explicitly by the legislature. The examples are Labor Code 1102.5 or Government Code 8547. These laws explain:

• What actions are guarded?

• What is retaliation?

• What can be done?

To win, the employee must follow the specific steps outlined in the law.

2. Wrongful Termination Against Public Policy (also called a Tameny Claim)

A wrongful termination in violation of public policy, or Tameny claim, is a common law cause of action created by court cases rather than a statute. To win, the employee should demonstrate the following:

• They were fired for doing something that supports an important public policy (like refusing to break the law)

• That this policy is based on a constitutional or statutory source

Why File Both Claims?

In most instances, the two assertions often overlap. For example:

• Reporting an illegal activity can be deemed statutory whistleblowing and public policy protection.

• The decision not to engage in a crime is explicitly covered by LC 1102.5(c) and contravenes general public policy.

Due to this overlapping, lawyers will frequently plead in the alternative; that is, they will include the claims in the same action. This is not redundancy; it is a strategic move to strengthen your legal position.

Benefits of Filing Both Claims

Submission of both claims has significant benefits:

1. Various Statutes of Limitations

The deadline for filing public policy claims is two years. LC 1102.5 gives three years to bring to the court. While LC 98.6 demands that an administrative complaint be filed within six months.

Filing both claims provides a backup if you miss a deadline for one.

2. Maximizing Remedies

The various claims grant access to multiple forms of compensation:

• Attorney fees and civil penalties may be claimed under statutory claims.

• Punitive damages may be available in public policy claims and can be substantial, depending on the severity of the employer’s conduct.

3. Extra Legal Protection

Sometimes, the misconduct of an employer does not fall into the statutory requirements under whistleblower law. As an example, the whistleblower under LC 1102.5 files a complaint or issue with the wrong person. If such a technical requirement is not fulfilled, the common law claim stands since it is based on general principles of fairness and public interest.

Whistleblower Cases: Remedies and Damages

There are several remedies and monetary damages available through a successful whistleblower lawsuit in California. They aim to compensate the employee and, in some cases, punish the employer for illegal conduct. The available remedies depend on the legal claim.

Labor Code 1102.5 Remedies

California’s primary whistleblower protection law, Labor Code 1102.5, provides expansive remedies:

• Lost Wages and Benefits (Back Pay and Front Pay): Back pay is compensation of wages, bonuses, and benefits lost due to retaliation. Front pay is used to compensate for future lost wages in case of an inability to go back to the former job.

• Emotional Distress: These are compensatory damages to non-economic damages such as anxiety, depression, humiliation, and pain caused by the retaliation of the employer.

• Punitive Damages: If the employer was malicious or fraudulent, a jury can grant punitive damages to punish the wrong and discourage further infringements.

• Civil Penalty and Attorney Fees: The law also provides a civil penalty of up to $10,000 per violation, and employers must pay reasonable attorney fees to a prevailing plaintiff.

Find an Efficient Whistleblower Lawyer Near Me

Despite legal protections, individuals who report illegal or unethical conduct may still face workplace retaliation. Fortunately, California provides strong legal protections and remedies for whistleblowers, but working through these laws without expert help can be overwhelming. Whistleblower cases are complex, with strict deadlines, detailed procedures, and powerful opposition from employers.

An experienced whistleblower attorney plays a vital role in evaluating your case, gathering evidence, handling all communications, and meeting critical legal requirements. Legal representation can help ensure compliance with procedural requirements and assist in pursuing remedies such as compensation, reinstatement, or other appropriate relief.

If you have reported wrongdoing or experienced retaliation, seek legal support before taking further steps. Contact Stop Unpaid Wages at 424-781-8411 for a free, confidential consultation and take the first step toward justice.