The recent California Supreme Court decision Lawson v. PPG Architectural Finishes, Inc., __ P.3d __, 2022 WL 244731 (Cal., Jan. 27, 2022) (Lawson) clarifies the applicable standard for whistleblower retaliation claims brought pursuant to Labor Code section 1102.5. The Court unanimously held that the applicable standard is articulated in Labor Code section 1102.6 instead of the burden-shifting framework set forth in the United States Supreme Court's decision of McDonnell Douglas Corp. v. Green (1973) 411 U.S. 792 (McDonnell Douglas) ? which is applicable to employment discrimination cases under the Fair Employment and Housing Act (FEHA).
In Lawson, a paint manufacturer employee claimed he was retaliated against for reporting his supervisor's fraudulent business practices in violation of Labor Code section 1102.5. Section 1102.5 prohibits an employer from retaliating against an employee for providing information the employee has reasonable cause to believe violates a local, state, or federal rule or regulation with a government agency, with a person with authority over the employee, or with another employee who has authority to investigate or correct the violation.
In accordance with McDonnell Douglas, the Lawson District Court utilized the burden-shifting framework encompassed therein, which includes an analysis of the following three factors: (1) the employee's ability to establish a prima facie case of retaliation; (2) the burden shift to the employer to articulate a...
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