Additional Discrimination Protections for California Workers

Governor Gavin Newson signed into law Senate Bill (“SB”) 497 on October 8, 2023. California state law currently prohibits employers from disciplining, discharging, discriminating, or otherwise retaliating against employees because the employee engaged in certain protected conduct. SB 947 establishes a “rebuttable presumption” in favor of an employee’s claim if an employer retaliates against the employee within ninety (90) days of engaging in protected activity. Protected activity under SB 947 includes making a wage claim or a complaint about unequal pay. The bill establishes that in addition to other remedies, an employer is liable for a civil penalty of up to $10,000 per employee for each violation, awarded to the employee who was retaliated against. The new law goes into effect on January 1, 2024.

As a result, workers who report workplace violations to their employer or government agencies will receive greater protections under SB 497. By requiring the California Labor Commissioner’s office and state courts to assume employers are illegally retaliating against employees under the circumstances described in SB 497, it will be easier for employees to establish favorable claims of retaliation. An employer would have to prove a legitimate non-retaliatory reason for the alleged retaliation to avoid liability.

Although collective bargaining agreements often succeed in preventing unequal pay because of transparent pay scales and steps, Unions should inform their members of SB 497 as these greater protections should encourage any worker who may have previously been too afraid to speak up about wage theft and unequal pay to do so, including workers in non-union settings. Similarly, the enhanced penalties under SB 497 should deter employers from retaliating against employees.

For further information regarding SB 497, contact your labor law counsel.