Retaliation

Under both California and federal law, employees are protected from unlawful retaliation in the workplace. Retaliation occurs when an employer takes adverse action against an employee because the employee engaged in a legally protected activity, such as reporting workplace discrimination, harassment, or other violations of the law. Adverse actions can include termination, demotion, pay cuts, or other forms of punishment. California’s Fair Employment and Housing Act (FEHA) and federal laws like Title VII of the Civil Rights Act make it illegal for employers to retaliate against employees for asserting their rights.

To prove unlawful retaliation, an employee must show that their participation in a protected activity, such as filing a complaint with human resources (“HR”), reporting safety violations, or cooperating with a workplace investigation, was a motivating factor in the employer’s decision to take adverse action. If the employee can convince a judge or jury that retaliation was a substantial factor in the employer’s decision, the employer may face significant financial liability, including damages for lost wages, emotional distress, and possibly even punitive damages.

The most common form of compensation in retaliation lawsuits is economic damages, which compensate the employee for wages lost as a result of the adverse action. For example, if an employee making $60,000 per year is fired after reporting unsafe working conditions and remains unemployed for 8 months, the core damages might total $40,000 for lost income. However, if the employee secures a new job after 3 months, the lost wages would likely be reduced to $15,000.

Beyond economic damages, employees who succeed in retaliation lawsuits can recover additional compensation for emotional distress. Retaliation often causes significant stress, anxiety, or humiliation for the employee, and these non-economic damages can compensate them for such stressors. Punitive damages may also be available in cases where the employer’s conduct was particularly malicious or reckless, and such damages are designed to punish the employer and deter similar conduct in the future.

California’s retaliation laws also provide for substantial penalties and allow employees who prevail to recover attorney’s fees. The prospect of paying the employee’s legal costs can be a strong incentive for employers to settle these cases, as attorney’s fees can often amount to more than the actual damages awarded.