Do whistleblower protections apply when an employee complains based on a mistaken view of the law? A recent Court of Appeal decision held that Labor Code section 1102.5(b) does not require the employee to be correct, only that they had reasonable cause to believe they were reporting a statutory violation.
In Contreras v. Green Thumb Produce, Inc., an employee believed he was being paid less than coworkers doing similar work. He started researching his rights and contacted the Labor Commissioner’s Office. There, he spoke with a deputy labor commissioner who told him the company might be violating the law and directed him to Equal Pay Act materials on the Labor Commissioner’s website, including a Frequently Asked Questions document. He reviewed the FAQ, concluded the employer was violating California law, and brought the materials to work intending to raise the issue with human resources and request a raise. After he presented the FAQ and pressed the issue, he was sent home and ultimately terminated.
Contreras sued, claiming whistleblower retaliation under section 1102.5(b). A jury found for the employee, but the trial court later granted judgment notwithstanding the verdict on the whistleblower claim, reasoning that the employee’s Equal Pay Act interpretation was legally incorrect and therefore could not support 1102.5 protection. The Court of Appeal reversed. It held there was substantial evidence supporting the jury’s finding that the employee...
Fairfield Township (Essex) By: Richard L. Smith A Delaware-based company with operations in Fairfield, New Jersey, has agreed to pay nearly $2.9 million to settle allegations that it improperly o...