A New California Law Makes It Easier for Employees to Establish Retaliation Claims
Gov Newsom signed into law the Equal Pay and Anti-Retaliation Protection Act amending Labor Code sections 98.6, 1102.5, and 1197.5 to create a rebuttable presumption of retaliation if an employee experiences an adverse
employment action within 90 days of engaging in any protected activity covered by the specified sections.

This recently enacted law which took effect on January 1, 2024, also entitles a prevailing plaintiff to civil penalties for each violation.
Section 98.6 concerns the exercise of employee rights afforded under the state Labor Code, including engaging in protected
conduct related to wage claims, claims arising from violations of the employee's political and civic rights, claims for recovery via the
Private Attorneys General Act (PAGA), and filing a claim or participating in a proceeding relating to employee rights that are under
the jurisdiction of the Labor Commissioner.

Section 1102.5 concerns whistleblower activity and an employee's right to refuse to participate in conduct that would result in a
violation of state or federal laws or regulations. Section 1197.5 concerns protected activity related to California's Equal Pay Act.
Background

The fear of retaliation is one of the main reasons workers are afraid to report labor violations

The recently enacted law creates a rebuttable presumption that an employer has retaliated against an employee if the employee experiences an
adverse employment action within 90 days of the employee engaging in protected activity. The new law squarely places the burden of proof on the employer to establish that the adverse employment
action was based on a legitimate, non-retaliatory reason.

The recently enacted law provides that, if an employer retaliated against an employee for Labor Code Section 1102.5 protected activity, in addition to the
other available remedies under the Labor Code, the employer also may be liable for a civil penalty not exceeding $10,000 per
employee for each violation. This civil penalty is already available for Section 98.6 protected activity.