California Whistleblower Laws

Whistleblowing in California refers to the act of reporting or refusing to participate in illicit or unethical activities, often occurring within an employer’s organization. This could range from fraud to public safety violations.

The California False Claims Act, in particular, is legislation tailored to protect employees who report instances where an employer has made a false claim for government funds. The CFCA is similar to the federal False Claims Act, but it has some differences and specific provisions for California.

The CFCA applies to any claim for payment or approval that is presented to an officer, employee, or agent of the state or a political subdivision or to a contractor, grantee, or other recipient of public funds if the money, property, or service is to be spent or used on behalf of the state or a political subdivision.

The CFCA covers a wide range of fraudulent activities, such as:

• Submitting false invoices, bills, receipts, or statements for goods or services that were not delivered, performed, or authorized;
• Falsifying records, reports, audits, certifications, or tests to conceal the misuse of public funds or resources;
• Overcharging, inflating costs, double-billing, or misrepresenting the quality or quantity of goods or services;
• Failing to report or pay taxes, fees, royalties, rents, or other obligations owed to the government;
• Conspiring with others to commit any of the above acts.

The CFCA allows the Attorney General or a local prosecuting authority to bring a civil action against the violator on behalf of the government. The CFCA also allows a whistleblower (also known as a qui tam plaintiff) to file a lawsuit on behalf of the government and share in the recovery if the case is successful.

The whistleblower must have direct and independent knowledge of the fraud and must provide a disclosure statement of the evidence to the government. The government can then decide whether to intervene and take over the case or allow the whistleblower to proceed with the case.

The CFCA provides for treble damages (three times the amount of actual damages) and civil penalties ranging from $5,500 to $11,000 for each false claim. The CFCA also protects whistleblowers from retaliation by their employers and grants them reinstatement, back pay, interest, and other compensation if they suffer discrimination or harassment as a result of reporting fraud.

What Rights Do Whistleblowers Have Under California Laws?

Whistleblowers in California have rights that protect them from potential retaliation.

Right to Be Free from Wrongful Termination Due to Whistleblowing Actions

Whistleblowers in California are safeguarded by robust provisions that prohibit employers from terminating their employment as a retaliatory measure. When an employee steps forward to report illicit or unethical activities, it’s not uncommon for employers to react defensively or adversely.

However, under California law, this right to protection ensures that any termination directly linked to the act of whistleblowing can be classified as “wrongful.” In cases where an employer violates this provision, they may be subjected to legal penalties. Additionally, the aggrieved employee might be entitled to remedies, including reinstatement and compensation for lost wages.

Right to Report Illegal Activities to Relevant Authorities

In addition to protection against retaliation, whistleblowers also have an unambiguous right to report any suspicious or illicit activities they witness. This is a broad right that encompasses various channels of reporting. Employees can approach internal company structures, like senior management or dedicated ethics departments, if they exist and are equipped to handle such complaints.

Alternatively, they can also report externally to regulatory bodies, government agencies, or law enforcement, depending on the nature of the violation. Employees must know they have this freedom and that their right to report isn’t restricted solely to internal company mechanisms. This is especially important if they believe the wrongdoing is systemic or involves higher echelons of the organization.

Are Whistleblowers Protected in California?

Absolutely. Whistleblowers are protected against employer retaliation under several California statutes, such as:

• Labor Code 1102.5 LC: This is the general whistleblower protection law that prohibits employers from making or enforcing any rule, regulation, or policy that prevents employees from reporting violations of law to a government or law enforcement agency, a person with authority over the employee, or another employee with authority to investigate the violation.
  • It also prohibits employers from retaliating against employees who report violations of the law or refuse to participate in activities that would result in a violation of the law.
• Labor Code 98.6 LC: This law protects employees who report or complain about wage and hour violations, such as unpaid wages, overtime, meal and rest breaks, minimum wage, or other labor code violations, to the Labor Commissioner or any other government agency.
  • It also protects employees who testify or assist in any investigation or proceeding related to wage and hour violations.
• Labor Code 6310 LC: This law protects employees who report or complain about unsafe working conditions or work practices that violate occupational health and safety laws or regulations to the Division of Occupational Safety and Health (DOSH) or any other government agency.
  • It also protects employees who participate in any occupational health and safety committee or program.
• Government Code 8547 GC et seq: This law protects public employees who report or disclose information about improper governmental activities, such as waste, fraud, abuse, corruption, or violation of law, to the California State Auditor or any other appropriate government agency. It also protects public employees who refuse to obey an illegal order.

If an employer retaliates by engaging in acts like demotion, suspension, or any form of discrimination due to the employee’s whistleblowing actions, it is deemed illegal.

Can a Whistleblower Remain Anonymous in California?

While a whistleblower can initially report misconduct anonymously in California, their identity might become known during the subsequent investigation or legal process, especially if they become a witness in a case. However, agencies like the EEOC (Equal Employment Opportunity Commission) and other state counterparts typically make significant efforts to keep whistleblowers’ identities confidential. Nevertheless, complete anonymity can’t always be guaranteed.

What Else Should I Know About Whistleblowing Laws in California?

While whistleblowers are protected, they also have responsibilities. Whistleblowers should ensure their claims are made in good faith and based on credible information. Filing a report based on rumors or unverified information can undermine the system and might not provide the whistleblower with the protections they expect.

While whistleblowers are protected from retaliation, they aren’t shielded from legitimate disciplinary actions unrelated to their whistleblowing activities.

What Can I Do if I Have Experienced Whistleblower Retaliation in California?

If you believe you have faced retaliation for whistleblowing, you have the right to file a lawsuit for wrongful termination or other retaliatory actions in California. The first step often involves filing a complaint with a relevant agency, such as the EEOC. They will review the situation and may conduct an investigation.

If they find evidence of wrongful termination or retaliation, they can order remedies like back pay, reinstatement, or other compensations. If unsatisfied with the outcome, you can proceed to file a lawsuit.

Do I Need a California Attorney for Help With Whistleblower Laws?

Hiring a knowledgeable California employment lawyer can be beneficial if you are having legal troubles with whistleblower protections or retaliations. They can provide guidance on your rights, potential courses of action, and the legal processes involved.

If you’re considering whistleblowing or believe you’ve faced retaliation, consult a California employment lawyer through LegalMatch to ensure your rights are upheld and you’re adequately represented.