Are Whistleblower Retaliation Lawsuits More Expensive in California?

California Governor Gavin Newsom signed Assembly Bill 1947 into law in September 2020 with an effective date of January 1, 2021. AB 1947 authorizes courts to award attorneys’ fees to whistleblowers who prevail in their case, making it more accessible for employees with retaliation claims to file against California employers. 

California’s Current Whistleblower Protections:

California Labor Code 1102.5 protects employees from retaliation for disclosing violations of the law, or offering testimony, information, etc. regarding a violation. Retaliation has been recognized in many forms including almost any adverse employment action that could affect the terms of employment or conditions of employment. However, it does not usually recognize personnel decisions like internal transfers as an “adverse employment action” that can be defined as retaliation.

Under the Current Law, Whistleblowers Can Seek Remedies Including:

Current legal protections for whistleblowers in California do include potentially significant consequences for employers that violate the law including back pay and benefits, payment of the employee’s actual damages, and/or civil penalties ($10,000 per violation). Under the current law, whistleblowers are not entitled to receive attorneys’ fees after winning their case under Section 1102.5. (Although some plaintiffs have successfully sought their attorneys’ fees under different statutes).

As Of January 1, 2021, Labor Code Section 1102.5 Will Authorize Award of Attorneys’ Fees:

When AB1947 goes into effect on January 1, 2021, courts will be authorized to award “reasonable” attorneys’ fees to plaintiffs who bring a successful action for a violation under Section 1102.5. The new legislation means California whistleblowers no longer need to seek an award of attorneys’ fees under different statutes or theories. As a result, California can expect to see an increase in the number of retaliation claims.

Supporters of the legislative changes argued that workplace anti-retaliation claims are the foundation for all other employee rights in the workplace (i.e., overtime pay, minimum wage, meal periods and rest breaks, workplace safety, protection from discrimination and harassment, etc.) If employees have a rational fear of termination for seeking their basic rights in the workplace, any “protection” for those rights is severely undermined. AB1947 is a protection for the “foundation” of employee rights in the workplace while also making it more financially accessible for litigants to obtain counsel to take a whistleblower retaliation case to court.

If you have questions about how to identify California labor law violations or if you need to file an employment law claim, please get in touch with Blumenthal Nordrehaug Bhowmik DeBlouw LLP. Experienced employment law attorneys are ready to assist you in any one of various law firm offices located in San Diego, San Francisco, Sacramento, Los Angeles, Riverside, and Chicago.