As legal professionals, it is prudent for us to stay up-to-date on various states’ legislative amendments that can impact our clients’ enterprises. A few weeks ago, California extended protections for employee conduct, marking a significant shift for employers in the state.
According to an article by Ervin Cohen & Jessup LLP, there is an increasing trend of employee claims of retaliation in the workplace following an amendment to the California Labor Code section 1102.5. This now includes protections for whistleblower complaints made directly to a person with authority over the complaining employee or another employee with the power to investigate the claims alleged.
This change is particularly significant as it extends protections beyond what was traditionally covered under federal whistleblower laws. Whereas before an employee needed to file a complaint with a government agency to be protected from retaliation, now the protections extend to complaints made within the company itself.
It is worth noting, however, this change also increases the potential for companies to face legal difficulties, even if the employee’s claims are determined later to be baseless. Importantly, if the reporting employee faced adverse action due to their whistleblowing, they may have a valid claim of retaliation regardless of the merits of their initial complaint.
As with any legislation changes, the precise application of this amendment in practice will only become clear after a series of litigated cases that further interprets the law. Therefore, corporations and law firms should be on their toes and monitor this area of the law closely, seeking legal advice where necessary to prevent unnecessary legal issues.
This amendment should make corporations reevaluate their internal whistleblower procedures and protocols. Addressing the complaints internally before they escalate and result in potential legal action is a prudent measure. As lawyers for corporations, we are ideally placed to work with our clients on this and ensuring they are adequately prepared for these changes.