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On January 27, 2022, in the unanimous decision Wallen Lawson v. PPG Architectural Finishes, Inc., the California Supreme Court (Court) clarified the applicable evidentiary standard for the presentation and evaluation of whistleblower retaliation claims filed under California Labor Code Section 1102.5 et. seq., (Section 1102.5). Section 1102.5 provides a private right of action based on retaliation to whistleblowers who disclose unlawful corporate activities to authorities and subsequently are subjected to a material adverse employment action. In adjudicating Section 1102.5 retaliation cases, California courts have applied various evidentiary standards, including the burden-shifting evidentiary framework used in certain Title VII discrimination cases set forth in the U.S. Supreme Court decision McDonnell Douglas v. Green, 411 U.S. 792 (1973) (McDonnell Douglas). According to the Court, the appropriate evidentiary standard for retaliation claims brought under Section 1102.5 is the contributing factor framework set forth in Section 1102.6, which permits employees to establish unlawful retaliation even if other legitimate factors also contributed to the adverse employment action. The application of the contributing factor burden of proof framework will make it more difficult for employers to defend Section 1102.5 whistleblower retaliation claims in California.
Factual and procedural background
Plaintiff Wallen Lawson (Lawson) filed a claim...
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