Cardenas v. Fanaian: Court of Appeal Discusses Retaliation under Labor Code Section 1102.5

In Cardenas v. M. Fanaian, D.D.S., Inc. (10/1/15) --- Cal.App.4th ---, the plaintiff complained to police that her wedding ring had been stolen at work, and the defendant terminated her because the police investigation was disrupting the workplace. Cardenas sued for violation of Labor Code section 1102.5 and wrongful termination in violation of public policy. A jury found in her favor, the trial court entered judgment, and the defendant appealed. The Court of Appeal affirmed, holding as follows:

An action under section 1102.5 is a stand-alone, statutory action that exists independently of, and does not depend upon, an action for wrongful termination in violation of public policy. "To establish a prima facie case of retaliation under section 1102.5(b), a plaintiff 'must show (1) she engaged in a protected activity, (2) her employer subjected her to an adverse employment action, and (3) there is a causal link between the two.'" As in other retaliation actions, if the employer demonstrates a legitimate business reason for its action, the employee then bears the burden of demonstrating that the employer's reason is pretextual. 

Section 1102.5 does not require the employee to show that the alleged illegal activity violates a policy that "inures to the benefit of the public at large rather than to a particular employer or employee."

Section 1102.5 also does not require the employee to show that the alleged illegal activity involved "business enterprise wrongdoing."

The opinion is available here.