Seyfarth Synopsis: California Labor Code section 1102.5 protects employees who disclose what they believe to be violations of the law. The Supreme Court of California has ruled that such disclosures are protected even if the employer already knows of the alleged violation. The People ex rel. Lilia Garcia-Brower, v. Kolla's, Inc.

The Facts

The complainant (identified as "A.C.R." due to immigration concerns) worked as a bartender at Kolla's, Inc., a nightclub in Orange County, CA. When A.C.R. complained to Kolla's owner that she had not been paid for three shifts, Kolla's owner threatened to report A.C.R. to immigration authorities, and subsequently terminated her employment.

A.C.R. filed a complaint with the Division of Labor Standards Enforcement (DLSE). When Kolla's refused to comply with DLSE's proposed remedies (i.e., lost wages, reinstatement, and civil penalties), the Labor Commissioner brought a suit against Kolla's for violations of various Labor Code sections, including section 1102.5(b), which prohibits employers from retaliating against employees for "disclosing information" concerning suspected violations of the law.

The Lower Court Decisions

The trial court ruled against the Labor Commissioner on the section 1102.5 claim, holding that there was no valid cause of action because A.C.R. reported her complaint to her employer, rather than to a government agency.

The Court of Appeal disagreed with the trial court's reasoning—because the trial court relied on an...

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