An employee was terminated when he mistakenly accused his employer of violating the Equal Pay Act (“EPA”) by paying him less than other workers performing similar work. (The EPA only protects employees from pay disparity because of gender, race, or ethnicity.) The employee sued for wrongful termination and violation of California’s whistleblower statute, Labor Code, section 1102.5, subdivision (b),which prohibits employers from retaliating against employees who report legal violations.
At trial, the jury found in favor of the employee. The employer filed a motion for JNOV on the employee’s whistleblower cause of action claiming the jury’s verdict was unsupported because the employee’s misunderstanding of the law could not provide a proper legal basis for liability under section 1102.5(b). The trial court agreed and granted the JNOV.
On appeal, the court reversed, holding that section 1102.5(b) protects employees who disclose information they reasonably believe is a violation of the law, even if that employee’s belief ultimately proves legally incorrect.
