The California Supreme Court issued an opinion in Lawson v. PPG Architectural Finishes, Inc. (S266001, Jan. 27, 2022), addressing the Ninth Circuit’s question of the proper method for presenting and evaluating a claim of whistleblower retaliation under Labor Code section 1102.5. The Supreme Court clarified that “employees need not satisfy the McDonnell Douglas [Corp. v. Green (1973) 411 U.S. 792 (McDonnell Douglas)] test to make out a case of unlawful retaliation.”

The employee sued his employer in the United District Court of California. He claimed that his employer fired him because he blew the whistle on fraudulent practices in violation of Labor Code section 1102.5. The employer moved for summary judgment. In evaluating the employee’s section 1102.5 claim, the district court applied the three-part burden-shifting framework laid out in McDonnell Douglas. Under that approach, the employee must first establish a prima facie case of unlawful discrimination or retaliation. Next, the employer bears the burden of articulating a legitimate reason for taking the challenged adverse employment action. Finally, the burden shifts back to the employee to demonstrate that the employer’s proffered legitimate reason is a pretext for discrimination or retaliation.

On appeal, the employee argued that the district court erred in applying the McDonnell Douglas test and should have applied the standard under section 1102.6. The Ninth Circuit determined that the outcome of the appeal was...

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