Wrongful Termination for Reporting Unlawful Activity

Fired for Reporting Illegal Activity? California Protects Whistleblowers

Introduction: The Courage to Speak Up and Your Legal Protections

It takes courage to report unlawful or unethical conduct in the workplace. Employees who act as whistleblowers by bringing attention to illegal activities play a crucial role in upholding the law and protecting public safety and welfare. Recognizing this, California law and public policy provide strong protections for employees who report or oppose illegal conduct by their employers. It is unlawful for an employer to retaliate against an employee, including by terminating their employment, for engaging in such protected whistleblower activities.

At Brightwood Law Group, PC, we are committed to defending employees who have been wrongfully terminated or have faced other forms of retaliation for bravely reporting unlawful activities.

Understanding Whistleblower Protections in California

Whistleblowing generally refers to an employee reporting information that they reasonably believe evidences a violation of a statute, rule, or regulation by their employer. California provides robust protections for whistleblowers, primarily under Labor Code section 1102.5. This law prohibits employers from retaliating against employees for:

Disclosing information, or because the employer believes the employee may disclose information, to a government or law enforcement agency, to a person with authority over the employee, or to another employee who has authority to investigate, discover, or correct the violation or noncompliance.
Providing information to, or testifying before, any public body conducting an investigation, hearing, or inquiry.
Refusing to participate in an activity that would result in a violation of state or federal rules or regulations or would violate local, state, or federal laws.

Reports can often be made internally (e.g., to a supervisor, HR department, or ethics hotline) or externally (e.g., to a government agency like OSHA, the SEC, or law enforcement). Federal laws, such as the Sarbanes-Oxley Act, the Dodd-Frank Act, and the False Claims Act, may also provide protections and even potential rewards for whistleblowers in specific circumstances.

What Types of “Unlawful Activity” Are Covered?

The protections for reporting unlawful activity are broad and can include good faith reports of suspected violations of:

Federal, State, or Local Laws and Regulations: This can encompass a wide array of misconduct.
Financial Misconduct: Such as accounting fraud, securities violations, insider trading, embezzlement, or fraudulent billing practices.
Health and Safety Violations: Reporting unsafe working conditions that could endanger employees or the public (e.g., violations of Cal/OSHA regulations).
Environmental Violations: Disclosing practices that violate environmental protection laws.
Unlawful Discrimination or Harassment: Reporting instances of discrimination or harassment within the workplace.
Other Illegal Conduct: Any other activity that the employee has reasonable cause to believe is a violation of a local, state, or federal statute, rule, or regulation.

It’s important to note that an employee often only needs a “reasonable belief” that the reported activity was unlawful; they do not necessarily need to provide definitive proof at the time of reporting for whistleblower protections to apply.

Wrongful Termination as Retaliation for Whistleblowing

Termination is the most severe form of retaliation, but employers may also engage in other adverse actions against whistleblowers, such as demotion, unfavorable transfers, reduction in pay or hours, harassment, or unjustified negative performance reviews. If such actions create an intolerable work environment that forces an employee to resign, it may be considered a “constructive discharge,” which can be treated as a wrongful termination.

To establish a claim for retaliatory wrongful termination, an employee typically needs to show:

They engaged in a protected activity (e.g., reporting unlawful conduct);
Their employer subjected them to an adverse employment action (e.g., termination); and
A causal link exists between the protected activity and the adverse action.

Proving this link often involves circumstantial evidence, such as the timing between the report and the termination, any evidence of pretextual (false) reasons given for the firing, or a departure from established company disciplinary procedures.

Examples of Wrongful Termination for Reporting Unlawful Activity:

An accountant is fired for “poor performance” shortly after internally reporting concerns about fraudulent accounting practices to senior management.
A healthcare worker who reports patient safety violations to a state regulatory agency is subsequently laid off during a supposed “restructuring,” while colleagues with less seniority are retained.
A construction worker is terminated after repeatedly complaining to their supervisor about unsafe equipment and lack of safety protocols on a job site.
An employee refuses their manager’s instruction to falsify data on a government contract and is then fired for alleged “insubordination.”

What to Do If You Were Fired for Reporting Unlawful Activity:

If you believe you have been terminated or retaliated against for whistleblowing:

Preserve All Evidence: Keep copies of any reports you made (emails, written complaints), any responses from your employer, details of the unlawful activity you reported, witness information, your performance reviews, and any documents related to your termination.
Document Everything in Detail: Create a thorough timeline of your observations of the unlawful activity, your reports, who you reported to, your employer’s response (if any), and all events leading up to and including your termination or other adverse actions.
Seek Legal Counsel Immediately: Whistleblower and retaliation claims are complex and often involve specific reporting procedures and strict deadlines. Consulting with an experienced employment lawyer as soon as possible is critical to protect your rights and understand your options.

How Brightwood Law Group, PC Champions Whistleblowers and Fights Retaliation

Brightwood Law Group, PC, is dedicated to protecting the rights of employees who bravely speak out against illegal activities in the workplace. We assist whistleblowers by:

Evaluating Your Retaliation Claim: We will meticulously review the facts of your case, including the nature of your report and the actions taken by your employer, to assess the strength of your wrongful termination or retaliation claim.
Navigating Complex Whistleblower Laws: We understand the intricacies of state and federal whistleblower protection statutes and will guide you through the appropriate legal channels.
Holding Employers Accountable: We are committed to holding employers accountable for unlawfully retaliating against employees who fulfill their ethical and civic duties.
Pursuing All Available Remedies: We will fight to secure the compensation and relief you deserve, which may include lost wages and benefits, emotional distress damages, punitive damages, attorneys’ fees, and, in some whistleblower cases (like False Claims Act cases), a potential share of any government recovery.

Terminated After Reporting Unlawful Activity? We Can Help.

If you were fired or faced other adverse actions after reporting unlawful activity by your employer, you may have potential claims against your employer. Contact Brightwood Law Group, PC, today for a confidential consultation to discuss your situation. Call us at (310) 895-9075 or fill out our online contact form.