SB 497 – Protected Employee Conduct

On February 14, 2023, Senate Bill 497  by Senator Lola Smallwood-Cuevas (D-Los Angeles), was introduced to create rebuttable presumptions for certain Labor Code violations. The bill would amend Labor Code Sections 98.6, 1102.5, and 1197.5.

Section 1 of the bill would amend Labor Code Section 98.6 to specify that, “if an employer engages in any action prohibited by this section within 90 days of the protected activity specified in this section, there shall be a rebuttable presumption in favor of the employee’s claim.” This amendment would expand existing law that prohibits a person from discharging an employee or in any manner discriminating, retaliating, or taking any adverse action against any employee or applicant for employment because the employee or applicant engaged in protected conduct.

Section 2 of the bill would amend Labor Code Section 1102.5 to provide that, “in addition to other penalties, remedies available, an employer that is a corporation or limited liability company is liable for a civil penalty not exceeding ten thousand dollars ($10,000) per employee for each violation of this section. section, to be awarded to the employee or employees who suffered the violation.” This amendment would provide that, in addition to other remedies, an employer is liable for a civil penalty not exceeding $10,000 per employee for each violation of law, to be awarded to the employee or employees who suffered the violation.

Section 3 of the bill would amend Labor Code Section 1197.5 to that, “If an employer engages in any action prohibited by this section within 90 days of the protected activity specified in this section, there shall be a rebuttable presumption in favor of the employee’s claim. An employer shall not prohibit an employee from disclosing the employee’s own wages, discussing the wages of others, inquiring about another employee’s wages, or aiding or encouraging any other employee to exercise his or her their rights under this section. Nothing in this section creates an obligation to disclose wages.” This amendment would expand existing law that prohibits an employer from paying an employee at wage rates less than the rates paid to an employee of the opposite sex for substantially similar work.