Protection for Reporting Labor Code Violations

The protection extends to employees who testify or are about to testify in connection with a notice or claim. The protection applies whether the claim is filed on the individual’s own behalf or on others’ behalf.1

Labor Code section 98.6 specifically protects an employee who brings a written or oral complaint that they are owed unpaid wages, but other types of complaints about Labor Code violations are also protected.

Employees who bring complaints or claims of Labor Code violations are protected from adverse actions like demotion or termination. In addition, employers are also prohibited from retaliating against an employee because the employee’s family member engaged in, or is perceived to have engaged in, protected conduct.2

An employee who is discriminated or retaliated against for exercising their rights under the Labor Code is entitled to reinstatement and reimbursement for lost wages and work benefits. An employer who willfully fails to hire, promote, or otherwise restore an employee or former employee who has been determined to be eligible for rehiring or promotion is guilty of a misdemeanor.

An employer who violates Labor Code section 98.6 is also liable for a civil penalty of up to $10,000 per employee for each violation, in addition to any other available remedies.

Not only is an employer liable for a violation of this anti-retaliation law, but liability also extends to:3

• A “client employer” — a specific definition related to companies who contract for labor, such as companies that use staffing agencies. For more information, see Contingent Workers.
• Any employer on a multiemployer worksite that exposed workers to hazardous conditions, created the hazard, was responsible for the health and safety of the worksite and/or was responsible for correcting the hazard.4

The Labor Commissioner has authority to investigate complaints of discrimination or retaliation for protected conduct.5 The Labor Commissioner can:

• Investigate an employer — even without a complaint from an employee — when the Labor Commissioner suspects retaliation or discrimination against a worker during a wage claim or other investigation.
• Obtain a court order prohibiting an employer from firing or disciplining an employee, even before completing its investigation or determining retaliation has occurred. The court order can be obtained upon a showing of “reasonable cause” that the employee is a victim of retaliation. However, an employer may still discipline or fire an employee for conduct unrelated to the retaliation claim.
• Penalize an employer up to $100 per day (up to a maximum of $20,000) for willful refusal to comply with an order to reinstate or otherwise restore an employee or former employee or for refusal to comply with an order to post a notice to employees or to stop the alleged conduct.

The Labor Commissioner can issue a citation directing the employer to cease violations and take actions to remedy it.6

Individuals who believe they’ve suffered a violation may file a complaint with the Labor Commissioner within one year of the alleged violation. The Labor Code, however, allows for the one-year period to be extended for good cause.7

• Respect the rights of workers to file wage claims and train managers on what constitutes retaliation and the company’s policy against it.

1. Lab. Code sec. 98.6.