Employee Whistleblowing Claims under the California Labor Code just got Harder to Defeat
MSK Client Alert
January 31, 2022
Last week, the California Supreme Court clarified the evidentiary standard for whistleblower retaliation claims brought under California Labor Code section 1102.5. In its decision, the high court clarified that such claims should not be evaluated under the McDonnell Douglas test, but that the standard set forth in the more employee-friendly California Labor Code section 1102.6 should apply instead.
Background
In Lawson v. PPG Architectural Finishes Inc., a former territory manager sued his former employer under California Labor Code section 1102.5 for firing him after he reported allegedly fraudulent practices. The federal trial court granted the employer’s motion for summary judgement by applying the McDonnell Douglas test.