📋 Overview

You've received a demand letter claiming retaliation for protected activity. California provides robust protections against employer retaliation for whistleblowing, discrimination complaints, safety concerns, and other protected activities. Understanding the specific type of retaliation alleged is critical to your response.

⚠ Burden-Shifting Standard

Under Labor Code 1102.5 (whistleblower), the burden shifts to the employer to prove the action would have been taken regardless of protected activity.

🕒 Temporal Proximity

Close timing between protected activity and adverse action is powerful circumstantial evidence of retaliation. Document independent reasons thoroughly.

💰 Severe Penalties

Retaliation remedies can include reinstatement, back pay, front pay, emotional distress, punitive damages, and attorney fees.

Types of Protected Activity

  • Whistleblowing (LC 1102.5) - Disclosing violations of law to government or supervisor
  • Discrimination complaints (FEHA) - Opposing discrimination or participating in investigation
  • Safety complaints (LC 6310) - Reporting unsafe working conditions to Cal/OSHA
  • Wage complaints (LC 98.6) - Filing Labor Commissioner claim or complaint about wages
  • Workers' compensation (LC 132a) - Filing workers' comp claim
  • CFRA/FMLA leave - Requesting or taking protected leave
  • Jury duty, voting, witness testimony - Exercising civic duties
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🔍 Evaluate the Claim

Before responding, identify the protected activity alleged, determine if an adverse action occurred, and establish your legitimate business reasons.

Risk Assessment Matrix

Retaliation TypePotential DamagesRisk Level
Whistleblower termination (LC 1102.5)Lost wages + punitives + reinstatement + feesHIGH
FEHA retaliationLost wages + emotional distress + punitives + feesHIGH
Workers' comp retaliation (LC 132a)Reinstatement + lost wages + $10K penalty + feesHIGH
Wage claim retaliation (LC 98.6)Lost wages + reinstatement + penalty + feesHIGH
Safety complaint retaliationLost wages + reinstatement + civil penaltyMEDIUM

📄 Protected Activity Evidence

  • Date(s) of alleged protected activity
  • Who received the complaint/report
  • Documentation of complaint
  • Decision-maker's knowledge of activity

📝 Business Reason Documentation

  • Performance issues predating protected activity
  • Policy violations and write-ups
  • Independent reason for adverse action
  • Comparator treatment

⚠ 2021 Amendment to LC 1102.5

Under SB 331 (2021), the burden has shifted. Once an employee establishes a prima facie case of whistleblower retaliation, the employer must prove by clear and convincing evidence that the adverse action would have occurred regardless of protected activity. This is a higher burden than previous law.

🛡 Your Defenses

Retaliation claims require the employee to show a causal connection between protected activity and adverse action. Your defense focuses on breaking that causal link.

Independent Legitimate Reason

If you can demonstrate the adverse action was based entirely on legitimate, non-retaliatory reasons (performance, misconduct, restructuring), and would have occurred regardless of any protected activity, this defeats the retaliation claim.

When to use: Clear documentation of issues predating the protected activity.

No Knowledge of Protected Activity

If the decision-maker was unaware of the employee's protected activity at the time of the adverse action, there can be no retaliatory motive. Document who knew what and when.

When to use: Decision-maker had no knowledge of complaint or whistleblowing.

No Adverse Employment Action

An adverse action must be material - significant enough that a reasonable employee would find it detrimental. Minor inconveniences or subjective feelings of mistreatment may not qualify.

When to use: Alleged "retaliation" was minor schedule change, office move, or similar.

No Protected Activity

Not all complaints are "protected activity." Internal complaints about general business decisions, personality conflicts, or matters unrelated to law violations may not be protected.

When to use: Complaint was about management style or personal grievance, not legal violations.

🚨 What Undermines Your Defense

  • Adverse action closely following protected activity (days or weeks)
  • Inconsistent or shifting explanations for the action
  • Decision-maker expressed frustration about the complaint
  • Similarly situated employees treated more favorably
  • Sudden documentation of "performance issues" after complaint

Response Options

Based on your evaluation, choose the appropriate response strategy.

Settlement Discussion

Given the burden shift in whistleblower cases, consider early settlement discussions to avoid the risk of trial.

  • Controls costs
  • Confidential resolution
  • Avoids precedent

Dispute Protected Activity

If the complaint was not truly "protected" (not about law violations, not to proper authority), challenge whether retaliation law applies.

  • May defeat claim entirely
  • Narrower issue
  • Technical defense

Offer Reinstatement

If the situation allows, offering reinstatement can mitigate damages and demonstrate good faith, even while disputing liability.

  • Mitigates lost wages
  • Shows good faith
  • May facilitate resolution

📊 Cost-Benefit Analysis: Settlement vs. Litigation

Example: Whistleblower retaliation claim

Lost wages (back pay and front pay)$150,000
Emotional distress damages$75,000
Punitive damages$150,000
Employee attorney fees$175,000+
Your defense costs$125,000+
MAX EXPOSURE IF YOU LOSE$675,000+

💡 Burden of Proof Matters

Under current law (LC 1102.5), once the employee makes a prima facie case, you must prove by "clear and convincing evidence" - a higher standard than preponderance - that you would have taken the same action anyway. This makes early settlement more attractive in marginal cases.

📝 Sample Responses

Copy and customize these response templates for your situation.

Denial - Independent Business Reasons
We have reviewed your demand letter dated [DATE] alleging retaliation and respectfully deny the claim. The employment action at issue was based entirely on legitimate, non-retaliatory business reasons that existed independently of any protected activity. Specifically, [describe reason - performance deficiencies, policy violations, restructuring]. These issues were documented as follows: - On [DATE]: [specific issue/warning] - On [DATE]: [specific issue/warning] - On [DATE]: [specific issue/warning] The same decision would have been made regardless of any complaint. We deny any retaliatory motive and are prepared to demonstrate our legitimate business reasons through appropriate legal channels if necessary.
Response - No Knowledge Defense
We have reviewed your claim of retaliation. We note that [DECISION-MAKER NAME], who made the employment decision in question, had no knowledge of your [complaint/report/protected activity] at the time the decision was made. The [complaint/report] was directed to [recipient], who did not participate in or influence the employment decision. The decision was made independently and based solely on [legitimate reason]. Because the decision-maker was unaware of the protected activity, there can be no causal connection between your [complaint/report] and the employment action. We deny any retaliation.
Settlement Discussion Offer
We have received your demand letter and, while we dispute your characterization of events, we recognize the value of resolving disputes amicably. Without any admission of liability or wrongdoing, and solely to avoid the expense and uncertainty of protracted litigation, we are willing to engage in confidential settlement discussions. We propose meeting with a neutral mediator within the next [30] days to explore whether a mutually acceptable resolution is possible. We suggest [mediator/mediation service]. Please confirm whether you are open to this approach. If we cannot reach a resolution, we are fully prepared to defend our position.

🚀 Next Steps

What to do after receiving a retaliation claim demand letter.

Step 1: Identify the Activity

Determine exactly what "protected activity" the employee claims triggered retaliation.

Step 2: Map the Timeline

Create a detailed timeline of the protected activity, performance issues, and adverse action.

Step 3: Document Independence

Gather all evidence that your decision was based on legitimate, independent reasons.

Step 4: Assess Burden

Determine if you can meet the "clear and convincing" standard for whistleblower claims.

If They File with CRD (FEHA Retaliation)

  • Position Statement - Submit detailed response with supporting documentation
  • Mediation - CRD offers free mediation early in the process
  • Investigation or Right-to-Sue - CRD may investigate or issue immediate right-to-sue

If They File a Lawsuit

  • Answer within 30 days - File your response to avoid default
  • Early Case Evaluation - Assess strength of your "same decision" defense
  • Consider Early Mediation - Given burden shift, early resolution may be prudent

Get Professional Help

Retaliation claims require careful documentation and strategy. Get a professional response letter drafted on attorney letterhead.

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