Blowing the whistle on an employer’s wrongdoing takes courage. It’s a difficult and stressful situation for any employee.
Whistleblowers frequently risk illegal retaliation. Employers might try to silence or punish them for speaking out.
But reporting misconduct isn’t always just an ethical choice. Certain situations might involve a legal duty to report as well.
Fortunately, strong laws offer protection for whistleblowers. Both federal and California laws provide important safeguards.
These legal protections often extend beyond just reporting wrongdoing. They typically also cover employees who assist in related investigations. Refusing to participate in illegal activities requested by an employer may also be protected.
Employers who retaliate against whistleblowers can face serious legal consequences. If you experience retaliation, you might recover significant damages. Potential relief includes back pay, compensation for emotional distress, and attorney’s fees.
We’ll start by defining what qualifies as protected whistleblower activity under California law.
Then, we’ll explain the different types of illegal employer retaliation. We’ll also discuss specific federal and California laws protecting whistleblowers.
Finally, we’ll provide guidance on how to safeguard yourself if you’re considering blowing the whistle. We will also outline situations where employees might be legally required to report wrongdoing.
What are the Criteria for Protected Whistleblower Complaints in California?
Let’s start with the basics. What is a whistleblower under California law?
It’s generally an employee reporting suspected illegal activity. The report might involve conduct by their employer or other employees.
Different laws protect whistleblowers. But California Labor Code § 1102.5 is a key state law. It’s often called the California Whistleblower Protection Act and offers some of the nation’s strongest protections.1
This law specifically protects employees reporting wrongdoing to various authorities. These include:
The law also protects employees in another situation. You are protected if you refuse to participate in activities violating laws or regulations.
Importantly, you don’t need to be certain about the violation or prove the conduct was definitely illegal to be protected. Protection applies as long as you had a good faith belief. This means you reasonably believed the activity violated a law or regulation.
A 2013 update (Senate Bill 496) made this law even stronger. Now the Whistleblower Protection Act protects employees who assist government agencies or law enforcement in investigations, hearings, or inquiries.2
This California whistleblower law has broad reach. It applies to both public sector and private sector employers.
It also protects internal complaints made to management or designated company contacts. Protection isn’t limited just to external reports filed with government agencies.
Violations of this Act can lead to serious consequences. This includes potential criminal penalties for employers or managers who retaliate. This helps deter retaliation against whistleblowers.
Defining Whistleblower Retaliation Under California Employment Law
The main purpose of whistleblower laws is protecting whistleblowers from retaliation. So what is the legal definition of whistleblower retaliation?
It’s when your employer takes negative action against you because you engaged in protected whistleblower activity. Two key elements generally define illegal whistleblower retaliation:
The adverse action must be sufficiently serious to count legally. It generally needs to have a material and harmful effect on your job’s terms or conditions.
The action also must be significant enough to deter a reasonable employee from reporting wrongdoing in the future. Minor slights or trivial inconveniences usually don’t qualify as illegal retaliation.
What kinds of employer actions could potentially be considered illegal retaliation if linked to whistleblowing? Common examples include:
Remember, proving retaliation requires evidence of a causal link between your protected activity and the employer’s adverse action.
The specific proof needed can vary. Different laws and different situations might involve different evidence standards.
Let’s explore some of the additional laws that protect whistleblowers in California.
What Specific Laws Protect California Whistleblowers?
California’s main Whistleblower Protection Act (Labor Code § 1102.5) provides broad coverage. But it isn’t the only law protecting whistleblowers. Other important state and federal laws also offer safeguards.
It’s crucial to understand these different laws. They often cover specific types of complaints or industries. They may also have unique requirements or procedures.
Knowing these nuances can help you decide how best to report wrongdoing. It also helps you understand how to protect yourself from potential retaliation.
Let’s explore some other key whistleblower protection laws. These operate at both the state and federal levels.
The California Fair Employment and Housing Act (FEHA)
California’s Fair Employment and Housing Act (FEHA) is a comprehensive law that protects employees from discrimination and harassment in the workplace.3
We’ve covered these topics in more detail in our Complete Guide to California Laws on Discrimination or our Guide to Workplace Harassment in California.
Importantly, FEHA also strongly prohibits retaliation. Your employer can’t legally punish you for reporting discrimination or harassment. Protection also applies if you oppose such conduct or assist others.
This protection covers participating or assisting in FEHA-related proceedings. Examples include:
FEHA protects more than just formal complaints or proceedings. It also shields employees who informally oppose practices they reasonably believe are discriminatory or harassing. This concept comes from FEHA’s “opposition clause.”
Examples of protected opposition can include:
A crucial aspect of FEHA’s anti-retaliation protection involves your state of mind. You don’t necessarily have to prove the conduct you complained about was actually illegal discrimination or harassment.
You are generally protected from retaliation if you acted with a reasonable belief. Did you have a good faith, reasonable belief that the employer’s conduct violated FEHA when you reported or opposed it?
If yes, your employer typically cannot legally retaliate against you. This protection applies even if the CRD or a court later determines no underlying FEHA violation occurred.
The California False Claims Act
The California False Claims Act (CFCA) protects whistleblowers reporting fraud. It specifically covers fraud against California state or local government entities.
Do you believe your employer is cheating the government? Examples include submitting false claims for payment or misusing government funds. The CFCA provides a path for employees to act. It allows filing a special type of lawsuit called a qui tam action.4
The person filing the qui tam lawsuit is known as the “relator.” The relator essentially sues on behalf of the government.
If the lawsuit successfully recovers funds lost to fraud, the relator may receive a percentage of that recovery as a reward. The government can also recover significant penalties from the wrongdoer. This often includes treble damages (up to three times the amount of the fraud) plus attorney’s fees.
Qui tam lawsuits follow a specific procedure. They are initially filed under seal. This means the case is kept confidential from the public and the defendant employer at first. The relevant government agencies are notified. They have time to investigate the claims privately and decide whether to formally join the case.
There’s a key distinction based on which government is involved. The CFCA applies to fraud against California state or local agencies. Fraud against the federal government is pursued under the separate Federal False Claims Act (FCA).
The CFCA also includes vital anti-retaliation protections. It shields employees from negative job actions for engaging in protected conduct, such as:
Qui tam lawsuits and whistleblower protections under the CFCA/FCA are complex legal areas.
Are you considering reporting potential government fraud by your employer? It’s crucial to consult with a lawyer experienced in these specific types of cases. They can explain your rights, obligations, potential risks, and potential rewards as a relator.
The SEC Whistleblower Program
The federal SEC Whistleblower Program encourages people to report potential securities fraud. Congress created it as part of the Dodd-Frank Act. The goal is helping the Securities and Exchange Commission (SEC) detect and prosecute violations.
The program offers financial rewards as incentives. Qualified whistleblowers may receive 10% to 30% of monetary sanctions collected by the SEC. The exact award percentage considers several factors. These include the tip’s quality and significance, and the whistleblower’s level of assistance.
Who is eligible for an SEC whistleblower award? You generally must provide the SEC with original information. This information must concern potential securities fraud impacting markets or investors. The information must also meet these key criteria:
Furthermore, your information must lead to a successful SEC enforcement action. That action must result in total monetary sanctions exceeding $1 million.
The Dodd-Frank Act also provides important job protections. It prohibits employer retaliation against employees who report potential securities violations to the SEC under this program.
The program allows anonymous submissions too. But to report anonymously and still be eligible for an award, you must be represented by an attorney.
Securities fraud encompasses many illegal schemes. Common examples include:
Do you have information about potential securities fraud by an employer or another entity? We can help advise you. We’ll explain the reporting process and help protect your rights, including potential anonymity, under the SEC Whistleblower Program. Contact us using the button above (desktop) or below (mobile).
The IRS Whistleblower Program
The federal IRS Whistleblower Program encourages individuals to report tax fraud. It also covers other significant tax underpayments or violations reported to the IRS. The program provides financial rewards and crucial protections for whistleblowers.
You could receive a substantial reward for reporting major tax violations. The potential award is generally 15% to 30% of the amount collected by the IRS based on your information. (This range typically applies when the amount in dispute exceeds $2 million). The IRS makes efforts to maintain whistleblower confidentiality throughout its process.
What if your employer retaliates against you for reporting? The program includes strong anti-retaliation protections (IRC § 7623(d)). You can sue your employer directly if they retaliate.
Potential remedies for retaliation are significant. These can include double back pay (plus interest) and compensation for other damages suffered. Attorney’s fees may also be recoverable.
Retaliation claims under the IRS Whistleblower Program aren’t subject to arbitration agreements, even if you signed one as a condition of your employment.
Other Miscellaneous Laws Protecting California Whistleblowers
California offers various other laws protecting whistleblowers in specific situations. Retaliation for reporting under these laws is generally illegal. Here are key examples:
Hazardous Substances Whistleblowing
The state’s Hazardous Substances Information and Training Act protects employees. Employers can’t retaliate for reporting concerns about hazardous workplace substances. Protection also covers testifying in related legal proceedings.5
Whistleblowers at Healthcare Facilities
California law also specifically protects many healthcare workers. Employers generally cannot retaliate for reporting concerns about patient safety or quality of care.6
Whistleblower Protections Related to Occupational Safety and Health
Under Cal/OSHA, employers cannot retaliate against workers for reporting workplace safety or health concerns. Reports can be verbal or written. Protected reporting includes complaints made to:7
Cal/OSHA rules also protect workers who refuse to perform unsafe work. This applies if the work clearly violates established health or safety standards.
Whistleblower Protections Related to Workers Compensation
It’s illegal for employers to retaliate against employees for filing a workers’ compensation claim.8 Employers violating this rule might face increased penalties or even criminal charges. Protection also extends to employees who testify in a coworker’s workers’ compensation case.
California Government Code Section 8547.1, et seq.
California has another Whistleblower Protection Act located in the Government Code (Gov. Code § 8547 and following sections).9 This law specifically protects State of California employees and applicants. It covers various kinds of whistleblowing, including reporting issues like:
The Sarbanes-Oxley Act
Sarbanes-Oxley (SOX) is a key federal law. It includes whistleblower protections for employees of publicly traded companies. Protection generally applies when employees report suspected fraud against shareholders or violations of certain SEC rules.10 Under SOX rules, you generally must report issues to a supervisor or other designated internal authority first.
What Steps Should Whistleblowers Take to Protect Themselves in California?
If you’re considering blowing the whistle or already have, it’s understandable to feel uncertain about what to do next. This process can be challenging.
Your livelihood might feel at stake. Employers sometimes use different tactics to discourage reporting. Protecting your rights and well-being is crucial.
Different laws protect different types of whistleblowing. Each law may have unique requirements and procedures. This complexity makes getting legal advice important.
Talk to an experienced employment lawyer early on. They can help you understand your specific situation and advise you on the best course of action.
Many lawyers offer a free initial consultation. This allows you to get information and advice without commitment. Ask if they handle whistleblower cases on contingency. This means no attorney fees unless you recover funds.
Act quickly because strict deadlines apply. Statutes of limitations limit your time to file claims. These deadlines vary significantly based on the specific law involved. Some can be very short. Missing a deadline usually means losing your right to seek justice.
Have you already reported wrongdoing and faced retaliation? Document everything immediately and thoroughly. Keep detailed records on all of the following:
This documentation is critical evidence. It helps prove the link between your whistleblowing and the employer’s negative actions.
California’s courts take whistleblower retaliation very seriously. Employers found liable can face significant penalties. This includes fines and potentially other consequences.
If illegal retaliation against you is proven, you may recover damages. Potential remedies can include:
Courts may also award punitive damages in whistleblower cases. These damages aren’t meant to compensate your losses directly. Instead, they serve to punish employers for particularly egregious conduct.
Punitive damages require showing the employer acted with malice, oppression, or fraud. They aim to deter similar behavior by that employer and others.
When are Whistleblowers Required to Come Forward in California?
Whistleblower laws mainly protect your right to report issues. But sometimes employees have a legal obligation to report wrongdoing.
It’s important to understand your potential reporting duties. Failing to report when legally required could lead to consequences. The specifics depend heavily on the particular law and your situation.
Here are some examples involving potential mandatory reporting duties:
This list provides examples but isn’t exhaustive. Knowing for sure if you have a legal duty to report can be difficult. It might depend on your job, industry, and level of knowledge about the situation.
Have doubts or questions about a potential reporting obligation? Consulting an experienced employment attorney is the best approach. We can help clarify your specific situation and potential duties or any other questions related to whistleblower protections. Click the button above (desktop) or below (mobile) to request a completely free consultation.
Citations
- Cal. Lab. Code § 1102.5 (go back)
- S.B. 496 2013-2014 Reg. Sess. (Cal. 2013) (go back)
- Cal. Gov. Code § 12940 (go back)
- Cal. Gov. Code § 12650, et seq. (go back)
- Cal. Lab. Code § 6399.7 (go back)
- Cal. Health & Safety Code § 1278.5 (go back)
- Cal. Lab. Code §§ 6310-6311 (go back)
- Cal. Lab. Code § 132 (a) (go back)
- Cal. Gov. Code § 8547.1, et seq. (go back)
- 18 U.S.C. § 1514A (go back)
