As of October 8, 2023, the landscape of employer-employee relations in California has been significantly altered due to Governor Gavin Newsom signing into law Senate Bill (SB) No. 497. This law, also referred to as the Equal Pay and Anti-Retaliation Protection Act, amends California Labor Code Sections 98.6, 1102.5, and 1197.5 in a way that shifts the burden of proof in retaliation claims.
Under SB 497, there will now be a rebuttable presumption of retaliation if an employer disciplines or discharges an employee within ninety days of certain protected activity. This means that, in such cases, it will be presumed that the employers’ actions were retaliatory, unless they can prove otherwise.
This is a meaningful deviation from the previous standard, which required the employee to prove that the employer’s actions were retaliatory. In practice, this could change how employers approach disciplining or discharging employees who have recently engaged in protected activities. It could encourage businesses to act more cautiously and ensure their actions can be defended in the light of scrutiny.
The changes brought about by this law underscore the evolving legal landscape of employee rights, making it imperative for corporations to stay current and ensure their practices are in line with these new regulations. It also highlights the importance for legal professionals to understand this new perspective on retaliation claims and prepare the right counsel for their corporate clients in managing such situations proactively.