SB 497 Makes Filing a Retaliation Claim in California Easier

In California, it is against the law for an employer to take an adverse employment action against an employee for exercising their legal rights or engaging in protected activity. California employees are safeguarded when they engage in certain protected activities, such as whistleblowing, participating in investigations related to harassment, discrimination, or other workplace violations, filing complaints, requesting accommodations, and taking legally entitled leaves such as family and medical leave under the FMLA. Employees who face retaliation can take legal action against the employer. An employee can file a claim with the relevant government agency or a lawsuit against the employer in court and seek remedies. Unfortunately, it has not been easy for California employees to establish retaliation claims. Thankfully, this is about to change. Beginning January 1, 2024, a new law will make things easier for victims of retaliation in California. 

In October this year, the Governor of California signed into law Senate Bill (SB) 497. This newly signed law makes some crucial changes to the California Labor Code. Under SB 497, there is a rebuttable presumption that an employer is guilty of retaliation if an employee suffers an adverse employment act within 90 days of engaging in a particular protected activity. For example, if a worker reports sexual harassment or files a workers’ compensation claim and is fired 90 days later, there is a rebuttable presumption that the employer retaliated against the employee.

Current law requires an employee to first establish a prima facie case of retaliation. Establishing this entails an individual showing that they engaged in protected activity, such as whistleblowing or filing a complaint or claim. After an employee demonstrates that they engaged in protected activity, they are required to prove that they were a victim of an adverse employment action such as being fired, suspended, or demoted. Finally, an employee must show a direct relationship between the protected activity and the action taken.

The newly signed law makes establishing a prima facie case of retaliation easier in California. Under Senate Bill 497, an employee has met this requirement if the adverse employment action happened within 90 days of the employee engaging in protected activity. However, because this is a rebuttable presumption, an employer has the opportunity to demonstrate that they had a non-retaliatory reason for doing what they did. For example, an employer has an opportunity to show that they had non-retaliatory reasons for firing an employee. In a case where an employer took an adverse employment action within 90 days of the employee engaging in protected activity, the burden of proof automatically shifts to the employer to demonstrate that they did not retaliate against the employee.

Apart from making it easier for California employees to establish a prima facie case of retaliation, Senate Bill 497 provides that, on top of the other available remedies, an employer guilty of retaliation may also be required to pay a penalty of up to $10,000 per worker for each violation. This money shall be paid to the claimant.

Contact a California Employment Lawyer

Contact a California employment lawyer if you need more information on SB 497 or help with an employment-related matter.