SB 497, going into effect on January 1, 2024, amends Labor Code sections 98.6, 1102.5, and 1197.5 to make it easier for employees to win retaliation claims.

Until now, California law has placed the burden on a worker to link an employer’s adverse action – such as a demotion, pay reduction or termination — to his or her prior complaints over workplace policy or practices.  The new law switches that burden, imposing a rebuttable presumption that unlawful retaliation did occur if management takes adverse action within 90 days after the worker’s complaint.

SB 497 also imposes a civil penalty up to $10,000 for prohibiting employees from reporting violations of perceived federal or state law, whether internally or to a government agency, or for retaliating against an employee who does so.  The Labor Commissioner must consider the nature and seriousness of the violation in determining the penalty.

Take-Aways:

Employers must promote and apply policies for worker complaints over possible workplace irregularities – including clear procedures for making and responding to such claims — and take particular care to limit discipline or termination for reasons unrelated to worker complaints.  Consulting with employment counsel before taking any adverse action against an employee who has lodged any such complaint is a wise practice.

For further information, please contact Tim Bowles, Cindy Bamforth or Helena Kobrin.

See also:

• Know, Then Go: Annual Seminar for Employers (November 29.2023)
• Take Heed: Responding to Harassment and Discrimination Complaints Correctly (July 28, 2023)
• A Memorable $3.6M Lesson: “Unforgettable” Roofing Co. Hit for Knee-Jerk Retaliation and Intimidation (March 1, 2023)
• Pay Back on Retribution: Complaining Employee to Collect for Psychiatric Center’s Retaliation (October 1, 2021)

Helena Kobrin
December 1, 2023