Addressing the method to evaluate a whistleblower retaliation claim under Labor Code section 1102.5, the California Supreme Court concluded that courts should apply the framework prescribed by statute in Labor Code section 1102.6, and that employees need not satisfy the McDonnell Douglas three-step test to make out a case of unlawful retaliation. Lawson v. PPG Architectural Finishes, Inc.
Facts
Wallen Lawson worked as a territory manager for PPG Architectural Finishes, Inc., a paint manufacturer. Lawson was responsible for stocking and merchandising PPG products in a large nationwide retailer's stores in Southern California. PPG used two metrics to evaluate Lawson’s performance: his ability to meet sales goals, and his scores on so-called market walks, during which PPG managers shadowed Lawson to evaluate his rapport with the retailer's staff and customers. On Lawson’s first walk, he received the highest possible rating, but the positive evaluations did not last, and his market walk scores soon took a nosedive. Lawson also frequently missed his monthly sales targets. Shortly thereafter, PPG placed Lawson on a performance improvement plan (PIP).
Close in time to Lawson being placed on the PIP, his direct supervisor allegedly began ordering Lawson to intentionally mistint slow-selling PPG paint products (tinting the paint to a shade the customer had not ordered). The large nationwide retailer would then be forced to sell the paint at a deep discount, enabling PPG to avoid...
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