The California Supreme Court this month ruled that employees who report labor law violations to an employer or agency that already knew about the violation is a protected disclosure under state whistleblower law.
The ruling in a case brought by the state’s Labor Commissioner means that whistleblowers who report “already known” violations are subject to anti-retaliation protection. The state’s Labor Code prohibits employers from retaliating against employees for “disclosing information” concerning suspected violations of the law either internally or to government or law enforcement agencies.
But in this case, the state Court of Appeals initially ruled in favor of the defendant, a nightclub that terminated the employment of a bartender and threatened to report her to immigration authorities after she told the owner she hadn’t been paid for her last three shifts.
The appeals court ruled the bartender had not made a “disclosure,” and thus was afforded whistleblower protection, because the term “disclose” means “the revelation of something new, or at least believed by the discloser to be new, to the person or agency to whom the disclosure is made.” The appeals court explained that the owner of the nightclub, “was at least aware of — if not responsible for — the non-payment of wages” and that an “employee’s report to the employee’s supervisor about the supervisor’s own wrongdoing is not a ‘disclosure’ and is not protected whistleblowing activity, because the employer already knows about his or her wrongdoing.”
In a unanimous decision, the Supreme Court overturned the appeals court ruling, concluding that the word “disclose” should not be so narrowly interpreted and that the bartender made a protected disclosure under the state Labor Code and was wrongfully retaliated against as a whistleblower.
The Supreme Court ruling comes with some limitations. While the nightclub did not participate in the case, amicus curiae contended that the Court’s new reading of “disclose” threatens “to convert everyday workplace disputes into whistleblower cases.” The Court responded that the Labor Code protections apply only where the disclosing employee “has reasonable cause to believe that the information discloses a [legal] violation. … This clause imposes a requirement of objective reasonableness and excludes from whistleblower protection disclosures that involve only disagreements over discretionary decisions, policy choices, interpersonal dynamics, or other nonactionable issues.”
The court also noted that employers accused of whistleblower retaliation can rebut the charge by “demonstrat[ing] by clear and convincing evidence that the alleged [retaliatory] action would have occurred for legitimate, independent reasons even if the employee had not” made a protected disclosure.
If you believe you’ve been retaliated against by your employer for making a whistleblower disclosure by reporting a violation of law to your company or a regulatory agency, we can help you better understand your rights, protections and options.
Keller Grover’s labor attorneys pursue justice for workers who have been treated unfairly by their employers, advocating for clients whose issues may pertain to wage theft, discrimination, harassment, and wrongful termination matters. Our attorneys are also experienced and knowledgeable about state and federal whistleblower laws and protections. This combination makes us uniquely qualified to represent whistleblowers. Contact us today for a free, confidential consultation.