Amended in Senate September 3, 2013

Amended in Senate August 12, 2013

Amended in Senate July 8, 2013

Amended in Assembly May 24, 2013

Amended in Assembly April 11, 2013

California Legislature—2013–14 Regular Session

Assembly Bill No. 263

Introduced by Assembly Member Roger Hernández

February 7, 2013

An act to amend Sections 98.6, begin insert 98.7, end insert 1102.5, and 1103 of, to add Section 1024.6 to, and to add Chapter 3.1 (commencing with Section 1019) to Part 3 of Division 2 of, the Labor Code, relating to employment.

LEGISLATIVE COUNSEL’S DIGEST

AB 263, as amended, Roger Hernández. Employment: retaliation: immigration-related practices.

Existing law prohibits an employer from discharging an employee or in any manner discriminating against any employee or applicant for employment because the employee or applicant has engaged in prescribed protected conduct relating to the enforcement of the employee’s or applicant’s rights. Existing law provides that an employee who made a bona fide complaint, and was consequently discharged or otherwise suffered an adverse action, is entitled to reinstatement and reimbursement for lost wages. Existing law makes it a misdemeanor for an employer to willfully refuse to reinstate or otherwise restore an employee who is determined by a specified procedure to be eligible for reinstatement.

This bill would also prohibit an employer from retaliating or taking adverse action against any employee or applicant for employment because the employee or applicant has engaged in protected conduct. The bill would expand the protected conduct to include a written or oral complaint by an employee that he or she is owed unpaid wages. The bill would provide that an employee who was retaliated against or otherwise was subjected to an adverse action is entitled to reinstatement and reimbursement for lost wages. The bill would subject a person who violates these provisions to a civil penalty of up to $10,000 per violation. The bill would also provide that it is not necessary to exhaust administrative remedies or procedures in the enforcement of begin delete these end delete begin insert specified end insert provisions. Because the willful refusal by an employer to reinstate or reimburse an employee who suffered a retaliatory action under these provisions would be a misdemeanor, the bill would expand the scope of a crime and impose a state-mandated local program.

Existing law declares that an individual who has applied for employment, or who is or has been employed in this state, is entitled to the protections, rights, and remedies available under state law, regardless of his or her immigration status. Existing law declares that an inquiry into a person’s immigration status for purposes of enforcing state labor and employment laws shall not be permitted, unless a showing is made, by clear and convincing evidence, that the inquiry is necessary in order to comply with federal immigration law.

This bill would make it unlawful for an employer or any other person to engage in, or direct another person to engage in, an unfair immigration-related practice, as defined, against a person for the purpose of, or with the intent of, retaliating against any person for exercising a right protected under state labor and employment laws or under a local ordinance applicable to employees, as specified. The bill would also create a rebuttable presumption that an adverse action taken within 90 days of the exercising of a protected right is committed for the purpose of, or with the intent of, retaliation.

The bill would authorize a civil action by an employee or other person who is the subject of an unfair immigration-related practice. The bill would authorize a court to order the appropriate government agencies to suspend certain business licenses held by the violating party for prescribed periods based on the number of violations. The bill would require the court to consider prescribed circumstances in determining whether a suspension of all licenses is appropriate.

Existing law prohibits an employer from making, adopting, or enforcing any rule, regulation, or policy preventing an employee from disclosing information to a government or law enforcement agency, where the employee has reasonable cause to believe that the information discloses a violation of state or federal statute, or a violation or noncompliance with a state or federal rule or regulation. Existing law further prohibits an employer from retaliating against an employee for that disclosure. Under existing law, a violation of these provisions by the employer is a misdemeanor. Existing law additionally subjects an employer that is a corporation or a limited liability company to a civil penalty not exceeding $10,000 for each violation of these provisions.

This bill would additionally prohibit any person acting on behalf of the employer from making, adopting, or enforcing any rule, regulation, or policy preventing an employee from disclosing information to a government or law enforcement agency, as provided, and from retaliating against an employee for such a disclosure. The bill would also expand the prohibited actions to include preventing an employee from, or retaliating against an employee for, providing information to, or testifying before, any public body conducting an investigation, hearing, or inquiry. The bill would provide that any person or entity that violates these provisions is guilty of a misdemeanor, and would further subject an entity that violates these provisions that is a corporation or limited liability company to a civil penalty not exceeding $10,000 for each violation of these provisions. By expanding the scope of a crime, this bill would impose a state-mandated local program.

Existing law prohibits an employer or prospective employer, with the exception of certain financial institutions, from obtaining a consumer credit report, as defined, for employment purposes unless it is for a specified position, including, among others, a position in the state Department of Justice, a managerial position, as defined, or a position that involves regular access to $10,000 or more of cash, as specified.

This bill would prohibit an employer from discharging an employee or in any manner discriminating, retaliating, or taking any adverse action against an employee because the employee updates or attempts to update his or her personal information, unless the changes are directly related to the skill set, qualifications, or knowledge required for the job.

begin insert

This bill would incorporate additional changes to Section 1102.5 of the Labor Code proposed by SB 496 that would become operative if this bill and SB 496 are enacted and this bill is enacted last.

end insert

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

The people of the State of California do enact as follows:

SECTION 1.  

The Legislature finds and declares all of the
following:

(a) Wage theft is a serious and widespread problem that causes
severe hardship to low-wage workers, their families, and their
communities.

(b) When a worker is denied wages or forced to work “off the
clock,” there is an immediate and irreparable harm to the worker
and his or her family.

(c) Low-wage, often immigrant, workers are the most frequent
victims of wage theft and are also exposed to the greatest hazards
at work.

(d) Immigrant workers have the greatest number of work-related
injuries and fatalities.

(e) Far too often, when workers come forward to expose unfair,
unsafe, or illegal conditions, they face retaliation from the
employer.

(f) Where there are immigrant workers involved, employer
retaliation often involves threats to contact law enforcement
agencies, including immigration enforcement agencies, if a worker
engages in protected conduct.

(g) No employee should have to fear adverse action, whether it
involves threats to cut hours, move a worker to night shift, or
contact law enforcement agencies, simply for engaging in rights
the State of California has deemed so important that they are
protected by law.

(h) It is in the public policy interest of the State of California
that workers be able to report concerns to their employers without
fear of retaliation or discrimination.

(i) It is in the public policy interest of the State of California
for workers to be willing to come forward to expose hazardous,
unsafe, and unfair conditions at their worksites so that local, state,
and federal agencies can effectively enforce the laws.

(j) It is essential to the enforcement of this state’s labor laws
that we have broad, clear, and effective protections for workers
engaging in conduct protected by law from all forms of employer
retaliation, including prohibiting immigration-related threats.

SEC. 2.  

Section 98.6 of the Labor Code is amended to read:

98.6.  

(a) A person shall not discharge an employee or in any
manner discriminate, retaliate, or take any adverse action against
any employee or applicant for employment because the employee
or applicant engaged in any conduct delineated in this chapter,
including the conduct described in subdivision (k) of Section 96,
and Chapter 5 (commencing with Section 1101) of Part 3 of
Division 2, or because the employee or applicant for employment
has filed a bona fide complaint or claim or instituted or caused to
be instituted any proceeding under or relating to his or her rights
that are under the jurisdiction of the Labor Commissioner, begin delete or end delete made
a written or oral complaint that he or she is owed unpaid wages,
or because the employee has initiated any action or notice pursuant
to Section 2699, or has testified or is about to testify in a
proceeding pursuant to that section, or because of the exercise by
the employee or applicant for employment on behalf of himself,
herself, or others of any rights afforded him or her.

(b) (1) Any employee who is discharged, threatened with
discharge, demoted, suspended, retaliated against, subjected to an
adverse action, or in any other manner discriminated against in
the terms and conditions of his or her employment because the
employee engaged in any conduct delineated in this chapter,
including the conduct described in subdivision (k) of Section 96,
and Chapter 5 (commencing with Section 1101) of Part 3 of
Division 2, or because the employee has made a bona fide
complaint or claim to the division pursuant to this part, or because
the employee has initiated any action or notice pursuant to Section
2699 shall be entitled to reinstatement and reimbursement for lost
wages and work benefits caused by those acts of the employer.

(2) An employer who willfully refuses to hire, promote, or
otherwise restore an employee or former employee who has been
determined to be eligible for rehiring or promotion by a grievance
procedure, arbitration, or hearing authorized by law, is guilty of a
misdemeanor.

(3) In addition to other remedies available, an employer who
violates this section is liable for a civil penalty not exceeding ten
thousand dollars ($10,000) per employee for each violation of this
section.

begin delete

(4) In the enforcement of this section, there is no requirement
that an individual exhaust administrative remedies or procedures.

end delete

(c) (1) Any applicant for employment who is refused
employment, who is not selected for a training program leading
to employment, or who in any other manner is discriminated
against in the terms and conditions of any offer of employment
because the applicant engaged in any conduct delineated in this
chapter, including the conduct described in subdivision (k) of
Section 96, and Chapter 5 (commencing with Section 1101) of
Part 3 of Division 2, or because the applicant has made a bona fide
complaint or claim to the division pursuant to this part, or because
the employee has initiated any action or notice pursuant to Section
2699 shall be entitled to employment and reimbursement for lost
wages and work benefits caused by the acts of the prospective
employer.

(2) This subdivision shall not be construed to invalidate any
collective bargaining agreement that requires an applicant for a
position that is subject to the collective bargaining agreement to
sign a contract that protects either or both of the following as
specified in subparagraphs (A) and (B), nor shall this subdivision
be construed to invalidate any employer requirement of an
applicant for a position that is not subject to a collective bargaining
agreement to sign an employment contract that protects either or
both of the following:

(A) An employer against any conduct that is actually in direct
conflict with the essential enterprise-related interests of the
employer and where breach of that contract would actually
constitute a material and substantial disruption of the employer’s
operation.

(B) A firefighter against any disease that is presumed to arise
in the course and scope of employment, by limiting his or her
consumption of tobacco products on and off the job.

(d) The provisions of this section creating new actions or
remedies that are effective on January 1, 2002, to employees or
applicants for employment do not apply to any state or local law
enforcement agency, any religious association or corporation
specified in subdivision (d) of Section 12926 of the Government
Code, except as provided in Section 12926.2 of the Government
Code, or any person described in Section 1070 of the Evidence
Code.

begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Section 98.7 of the end insert begin insert Labor Code end insert begin insert is amended to read: end insert

98.7.  

(a) Any person who believes that he or she has been
discharged or otherwise discriminated against in violation of any
law under the jurisdiction of the Labor Commissioner may file a
complaint with the division within six months after the occurrence
of the violation. The six-month period may be extended for good
cause. The complaint shall be investigated by a discrimination
complaint investigator in accordance with this section. The Labor
Commissioner shall establish procedures for the investigation of
discrimination complaints. A summary of the procedures shall be
provided to each complainant and respondent at the time of initial
contact. The Labor Commissioner shall inform complainants
charging a violation of Section 6310 or 6311, at the time of initial
contact, of his or her right to file a separate, concurrent complaint
with the United States Department of Labor within 30 days after
the occurrence of the violation.

(b) Each complaint of unlawful discharge or discrimination
shall be assigned to a discrimination complaint investigator who
shall prepare and submit a report to the Labor Commissioner based
on an investigation of the complaint. The Labor Commissioner
may designate the chief deputy or assistant Labor Commissioner
or the chief counsel to receive and review the reports. The
investigation shall include, where appropriate, interviews with the
complainant, respondent, and any witnesses who may have
information concerning the alleged violation, and a review of any
documents that may be relevant to the disposition of the complaint.
The identity of a witness shall remain confidential unless the
identification of the witness becomes necessary to proceed with
the investigation or to prosecute an action to enforce a
determination. The investigation report submitted to the Labor
Commissioner or designee shall include the statements and
documents obtained in the investigation, and the findings of the
investigator concerning whether a violation occurred. The Labor
Commissioner may hold an investigative hearing whenever the
Labor Commissioner determines, after review of the investigation
report, that a hearing is necessary to fully establish the facts. In
the hearing the investigation report shall be made a part of the
record and the complainant and respondent shall have the
opportunity to present further evidence. The Labor Commissioner
shall issue, serve, and enforce any necessary subpoenas.

(c) If the Labor Commissioner determines a violation has
occurred, he or she shall notify the complainant and respondent
and direct the respondent to cease and desist from the violation
and take any action deemed necessary to remedy the violation,
including, where appropriate, rehiring or reinstatement,
reimbursement of lost wages and interest thereon, payment of
reasonable attorney’s fees associated with any hearing held by the
Labor Commissioner in investigating the complaint, and the posting
of notices to employees. If the respondent does not comply with
the order within 10 working days following notification of the
Labor Commissioner’s determination, the Labor Commissioner
shall bring an action promptly in an appropriate court against the
respondent. If the Labor Commissioner fails to bring an action in
court promptly, the complainant may bring an action against the
Labor Commissioner in any appropriate court for a writ of mandate
to compel the Labor Commissioner to bring an action in court
against the respondent. If the complainant prevails in his or her
action for a writ, the court shall award the complainant court costs
and reasonable attorney’s fees, notwithstanding any other law.
Regardless of any delay in bringing an action in court, the Labor
Commissioner shall not be divested of jurisdiction. In any action,
the court may permit the claimant to intervene as a party plaintiff
to the action and shall have jurisdiction, for cause shown, to restrain
the violation and to order all appropriate relief. Appropriate relief
includes, but is not limited to, rehiring or reinstatement of the
complainant, reimbursement of lost wages and interest thereon,
and any other compensation or equitable relief as is appropriate
under the circumstances of the case. The Labor Commissioner
shall petition the court for appropriate temporary relief or
restraining order unless he or she determines good cause exists for
not doing so.

(d) (1) If the Labor Commissioner determines no violation has
occurred, he or she shall notify the complainant and respondent
and shall dismiss the complaint. The Labor Commissioner may
direct the complainant to pay reasonable attorney’s fees associated
with any hearing held by the Labor Commissioner if the Labor
Commissioner finds the complaint was frivolous, unreasonable,
groundless, and was brought in bad faith. The complainant may,
after notification of the Labor Commissioner’s determination to
dismiss a complaint, bring an action in an appropriate court, which
shall have jurisdiction to determine whether a violation occurred,
and if so, to restrain the violation and order all appropriate relief
to remedy the violation. Appropriate relief includes, but is not
limited to, rehiring or reinstatement of the complainant,
reimbursement of lost wages and interest thereon, and other
compensation or equitable relief as is appropriate under the
circumstances of the case. When dismissing a complaint, the Labor
Commissioner shall advise the complainant of his or her right to
bring an action in an appropriate court if he or she disagrees with
the determination of the Labor Commissioner, and in the case of
an alleged violation of Section 6310 or 6311, to file a complaint
against the state program with the United States Department of
Labor.

(2) The filing of a timely complaint against the state program
with the United States Department of Labor shall stay the Labor
Commissioner’s dismissal of the division complaint until the
United States Secretary of Labor makes a determination regarding
the alleged violation. Within 15 days of receipt of that
determination, the Labor Commissioner shall notify the parties
whether he or she will reopen the complaint filed with the division
or whether he or she will reaffirm the dismissal.

(e) The Labor Commissioner shall notify the complainant and
respondent of his or her determination under subdivision (c) or
paragraph (1) of subdivision (d), not later than 60 days after the
filing of the complaint. Determinations by the Labor Commissioner
under subdivision (c) or (d) may be appealed by the complainant
or respondent to the Director of Industrial Relations within 10 days
following notification of the Labor Commissioner’s determination.
The appeal shall set forth specifically and in full detail the grounds
upon which the appealing party considers the Labor
Commissioner’s determination to be unjust or unlawful, and every
issue to be considered by the director. The director may consider
any issue relating to the initial determination and may modify,
affirm, or reverse the Labor Commissioner’s determination. The
director’s determination shall be the determination of the Labor
Commissioner. The director shall notify the complainant and
respondent of his or her determination within 10 days of receipt
of the appeal.

(f) The rights and remedies provided by this section do not
preclude an employee from pursuing any other rights and remedies
under any other law.

begin insert

(g) In the enforcement of this section, there is no requirement
that an individual exhaust administrative remedies or procedures.

end insert

begin delete SEC. 3. end delete
begin insert SEC. 4. end insert   

Chapter 3.1 (commencing with Section 1019) is added
to Part 3 of Division 2 of the Labor Code, to read:

 

Chapter  3.1. Unfair Immigration-Related Practices

 

1019.  

(a) It shall be unlawful for an employer or any other
person or entity to engage in, or to direct another person or entity
to engage in, unfair immigration-related practices against any
person for the purpose of, or with the intent of, retaliating against
any person for exercising any right protected under this code or
by any local ordinance applicable to employees. Exercising a right
protected by this code or local ordinance includes, but is not limited
to, the following:

(1) Filing a complaint or informing any person of an employer’s
or other party’s alleged violation of this code or local ordinance,
so long as the complaint or disclosure is made in good faith.

(2) Seeking information regarding whether an employer or other
party is in compliance with this code or local ordinance.

(3) Informing a person of his or her potential rights and remedies
under this code or local ordinance, and assisting him or her in
asserting those rights.

(b) (1) As used in this chapter, “unfair immigration-related
practice” means any of the following practices, when undertaken
for the retaliatory purposes prohibited by subdivision (a):

(A) Requesting more or different documents than are required
under Section 1324a(b) of Title 8 of the United States Code, or a
refusal to honor documents tendered pursuant to that section that
on their face reasonably appear to be genuine.

(B) Using the federal E-Verify system to check the employment
authorization status of a person at a time or in a manner not
required under Section 1324a(b) of Title 8 of the United States
Code, or not authorized under any memorandum of understanding
governing the use of the federal E-Verify system.

(C) Threatening to file or the filing of a false police report.

(D) Threatening to contact or contacting immigration authorities.

(2) “Unfair immigration-related practice” does not include
conduct undertaken at the express and specific direction or request
of the federal government.

(c) Engaging in an unfair immigration-related practice against
a person within 90 days of the person’s exercise of rights protected
under this code or local ordinance applicable to employees shall
raise a rebuttable presumption of having done so in retaliation for
the exercise of those rights.

(d) (1) An employee or other person who is the subject of an
unfair immigration-related practice prohibited by this section, or
a representative of that employee or person, may bring a civil
action for equitable relief and any damages or penalties, in
accordance with this section.

(2) Upon a finding by a court of applicable jurisdiction of a
violation this section:

(A) For a first violation, the court in its discretion, may order
the appropriate government agencies to suspend all licenses subject
to this chapter that are held by the violating party for a period of
up to 14 days. For the purposes of this paragraph, the licenses that
are subject to suspension are all licenses held by the violating party
specific to the business location or locations where the unfair
immigration-related practice occurred. In determining whether a
suspension of all licenses is appropriate, the court shall consider
whether the employer knowingly committed an unfair immigration
practice, the good faith efforts of the employer to resolve any
alleged unfair immigration related practice after receiving notice
of the violations, as well as the harm other employees of the
employer begin insert , or employees of other employers on a multiemployer
jobsite, end insert will suffer as a result of the suspension of all licenses. On
receipt of the court’s order and notwithstanding any other law, the
appropriate agencies shall suspend the licenses according to the
court’s order.

(B) For a second violation, the court, in its discretion, may order
the appropriate government agencies to suspend all licenses that
are held by the violating party specific to the business location or
locations where the unfair immigration-related practice occurred,
for a period of up to 30 days. In determining whether a suspension
of all licenses is appropriate, the court shall consider whether the
employer knowingly committed an unfair immigration practice,
the good faith efforts of the employer to resolve any alleged unfair
immigration related practice after receiving notice of the violations,
as well as the harm other employees of the employer begin insert , or employees
of other employers on a multiemployer jobsite, end insert will suffer as a
result of the suspension of all licenses. On receipt of the court’s
order and notwithstanding any other law, the appropriate agencies
shall immediately suspend the licenses.

(C) For a third violation, or any violation thereafter, the court
, in its discretion, may order the appropriate government agencies
to suspend for a period of up to 90 days all licenses that are held
by the violating party specific to the business location or locations
where the unfair immigration-related practice occurred. In
determining whether a suspension of all licenses is appropriate,
the court shall consider whether the employer knowingly
committed an unfair immigration practice, the good faith efforts
of the employer to resolve any alleged unfair immigration related
practice after receiving notice of the violations, as well as the harm
other employees of the employer begin insert , or employees of other employers
on a multiemployer jobsite, end insert will suffer as a result of the suspension
of all licenses. On receipt of the court’s order and notwithstanding
any other law, the appropriate agencies shall immediately suspend
the licenses.

(3) An employee or other person who is the subject of an unfair
immigration-document practice prohibited by this section, and
who prevails in an action authorized by this section, shall recover
its reasonable attorney’s fees and costs, including any expert
witness costs.

(e) As used in this chapter:

(1) “License” means any agency permit, certificate, approval,
registration, or charter that is required by law and that is issued by
any agency for the purposes of operating a business in this state.
“License” does not include a professional license.

(2) “Violation” means each incident when an unfair immigration
practice was committed, without reference to the number of
employees involved in the incident.

begin delete

1019.1.  

The provisions of this chapter are severable. If any
provision of this chapter or its application is held invalid, that
invalidity shall not affect other provisions or applications that can
be given effect without the invalid provision or application.

end delete

begin delete SEC. 4. end delete
begin insert SEC. 5. end insert   

Section 1024.6 is added to the Labor Code, to read:

1024.6.  

An employer may not discharge an employee or in any
manner discriminate, retaliate, or take any adverse action against
an employee because the employee updates or attempts to update
his or her personal information, unless the changes are directly
related to the skill set, qualifications, or knowledge required for
the job.

begin delete SEC. 5. end delete
begin insert SEC. 6. end insert   

Section 1102.5 of the Labor Code is amended to read:

1102.5.  

(a) An employer, or any person acting on behalf of
the employer, shall not make, adopt, or enforce any rule, regulation,
or policy preventing an employee from disclosing information to
a government or law enforcement agency, or begin delete for end delete begin insert from end insert providing
information to, or testifying before, any public body conducting
an investigation, hearing, or inquiry, where the employee has
reasonable cause to believe that the information discloses a
violation of state or federal statute, or a violation begin insert of end insert or
noncompliance with a state or federal rule or regulation.

(b) An employer, or any person acting on behalf of the employer,
shall not retaliate against an employee for disclosing information
to a government or law enforcement agency, or for providing
information to, or testifying before, any public body conducting
an investigation, hearing, or inquiry, where the employee has
reasonable cause to believe that the information discloses a
violation of state or federal statute, or a violation begin insert of end insert or
noncompliance with a state or federal rule or regulation.

(c) An employer, or any person acting on behalf of the employer,
shall not retaliate against an employee for refusing to participate
in an activity that would result in a violation of state or federal
statute, or a violation begin insert o end insert begin insert f end insert or noncompliance with a state or federal
rule or regulation.

(d) An employer, or any person acting on behalf of the employer,
shall not retaliate against an employee for having exercised his or
her rights under subdivision (a), (b), or (c) in any former
employment.

(e) A report made by an employee of a government agency to
his or her employer is a disclosure of information to a government
or law enforcement agency pursuant to subdivisions (a) and (b).

(f) In addition to other penalties, an employer that is a
corporation or limited liability company is liable for a civil penalty
not exceeding ten thousand dollars ($10,000) for each violation
of this section.

(g) This section does not apply to rules, regulations, or policies
that implement, or to actions by employers against employees who
violate, the confidentiality of the lawyer-client privilege of Article
3 (commencing with Section 950) of, or the physician-patient
privilege of Article 6 (commencing with Section 990) of, Chapter
4 of Division 8 of the Evidence Code, or trade secret information.

begin insert

begin insert SEC. 6.5. end insert   

end insert

begin insert Section 1102.5 of the end insert begin insert Labor Code end insert begin insert is amended to
read: end insert

1102.5.  

(a) An begin delete employer may end delete begin insert employer, or any person acting
on behalf of the employer, shall end insert not make, adopt, or enforce any
rule, regulation, or policy preventing an employee from disclosing
information to a government or law enforcement agency, begin delete where end delete
begin insert or to a person with authority over the employee or to another
employee who has authority to investigate, discover, or correct
the violation or noncompliance, or from providing information to,
or testifying before, any public body conducting an investigation,
hearing, or inquiry, if end insert the employee has reasonable cause to believe
that the information discloses a violation of state or federal statute,
or a violation begin insert of end insert or noncompliance with a begin delete state end delete begin insert local, state, end insert or
federal rule or begin delete regulation. end delete begin insert regulation end insert begin insert , regardless of whether
disclosing the information is part of the employee’s job duties. end insert

(b) An begin delete employer may end delete begin insert employer, or any person acting on behalf
of the employer, shall end insert not retaliate against an employee for
disclosing begin delete information end delete begin insert information, end insert begin insert or because the employer
believes that the employee disclosed or may disclose information, end insert
to a government or law enforcement agency, begin delete where end delete begin insert or to a person
with authority over the employee or another employee who has
the authority to investigate, discover, or correct the violation or
noncompliance, or for providing information to, or testifying
before, any public body conducting an investigation, hearing, or
inquiry, if end insert the employee has reasonable cause to believe that the
information discloses a violation of state or federal statute, or a
violation begin insert of end insert or noncompliance with a begin delete state end delete begin insert local, state, end insert or federal
rule or begin delete regulation. end delete begin insert regulation, regardless of whether disclosing the
information is part of the employee’s job duties. end insert

(c) An begin delete employer may end delete begin insert employer, or any person acting on behalf
of the employer, shall end insert not retaliate against an employee for refusing
to participate in an activity that would result in a violation of state
or federal statute, or a violation begin insert of end insert or noncompliance with a begin delete state end delete
begin insert local, state, end insert or federal rule or regulation.

(d) An begin delete employer may end delete begin insert employer, or any person acting on behalf
of the employer, shall end insert not retaliate against an employee for having
exercised his or her rights under subdivision (a), (b), or (c) in any
former employment.

(e) A report made by an employee of a government agency to
his or her employer is a disclosure of information to a government
or law enforcement agency pursuant to subdivisions (a) and (b).

(f) In addition to other penalties, an employer that is a
corporation or limited liability company is liable for a civil penalty
not exceeding ten thousand dollars ($10,000) for each violation
of this section.

(g) This section does not apply to rules, regulations, or policies
begin delete which end delete begin insert that end insert implement, or to actions by employers against
employees who violate, the confidentiality of the lawyer-client
privilege of Article 3 (commencing with Section begin delete 950), end delete begin insert 950) of, end insert the
physician-patient privilege of Article 6 (commencing with Section
990) begin delete of end delete begin insert of, end insert Chapter 4 of Division 8 of the Evidence Code, or trade
secret information.

begin delete SEC. 6. end delete
begin insert SEC. 7. end insert   

Section 1103 of the Labor Code is amended to read:

1103.  

An employer or any other person or entity that violates
this chapter is guilty of a misdemeanor punishable, in the case of
an individual, by imprisonment in the county jail not to exceed
one year or a fine not to exceed one thousand dollars ($1,000) or
both that fine and imprisonment, or, in the case of a corporation,
by a fine not to exceed five thousand dollars ($5,000).

begin insert

begin insert SEC. 8. end insert   

end insert begin insert

The provisions of this act are severable. If any
provision of this act or its application is held invalid, that invalidity
shall not affect other provisions or applications that can be given
effect without the invalid provision or application.

end insert

begin insert

begin insert SEC. 9. end insert   

end insert begin insert

Section 6.5 of this bill incorporates amendments to
Section 1102.5 of the Labor Code proposed by both this bill and
Senate Bill 496. It shall only become operative if (1) both bills are
enacted and become effective on or before January 1, 2014, (2)
each bill amends Section 1102.5 of the Labor Code, and (3) this
bill is enacted after Senate Bill 496, in which case Section 6 of this
bill shall not become operative.

end insert

begin delete SEC. 7. end delete
begin insert SEC. 10. end insert   

No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of
the Government Code, or changes the definition of a crime within
the meaning of Section 6 of Article XIII B of the California
Constitution.