California Labor Code Section 98.6 makes it illegal for an employer to fire, demote, cut hours, refuse to hire, or otherwise punish a worker for exercising a right under the state’s labor laws. If the punishment lands within 90 days of your protected activity, the law now presumes it was retaliation, and the employer has to prove otherwise.1California Legislative Information. California Code LAB 98.6 – Employee Retaliation and Discrimination Remedies include reinstatement, lost wages and benefits, and a civil penalty of up to $10,000 per violation paid directly to you.
What Activities Are Protected
The statute covers current employees, former employees, and job applicants. The protection reaches a wide range of conduct tied to enforcing California labor standards:
- Filing a wage claim with the Labor Commissioner, reporting a labor law violation to a government agency, or threatening to do either.
- Telling your employer, verbally or in writing, that you believe you are owed unpaid wages.
- Testifying or being about to testify in a Labor Commissioner proceeding.
- Exercising any right under the Labor Code, including demanding timely payment, requesting a legally required meal or rest break, or using paid sick leave.
- Bringing a Private Attorneys General Act (PAGA) claim under Labor Code Section 2699.
- Engaging in political activity protected by Labor Code Sections 1101 through 1106.
You do not need to file a formal legal proceeding to be covered. Asking your supervisor for overtime you’re owed, or telling a coworker they’re entitled to a rest break, counts as exercising a right under the Labor Code.2Department of Industrial Relations. Laws that Prohibit Retaliation and Discrimination
What Counts as Retaliation
Retaliation is not limited to termination. Section 98.6 prohibits any adverse action taken because of your protected conduct, including demotion, suspension, a cut in hours or pay, reassignment to less desirable duties, threats, and refusal to hire an applicant.1California Legislative Information. California Code LAB 98.6 – Employee Retaliation and Discrimination
The hard part is usually the causal link. You need to show the adverse action happened because of the protected activity and not for some unrelated legitimate reason. That’s where the 90-day presumption changes the math.
The 90-Day Rebuttable Presumption
SB 497 took effect on January 1, 2024. It added a rebuttable presumption to Section 98.6: if your employer takes an adverse action against you within 90 days of your protected activity, the law presumes the action was retaliatory.1California Legislative Information. California Code LAB 98.6 – Employee Retaliation and Discrimination
That flips the usual burden. Instead of you having to prove your employer’s motive, your employer has to produce credible evidence of a legitimate, non-retaliatory reason. File a wage complaint on March 1 and get fired on April 15, and the presumption kicks in automatically. It doesn’t guarantee a win. Documented performance problems that predated the protected activity can rebut it. But the employer has to come forward with proof rather than simply denying the motive.
Filing With the Labor Commissioner
One route is an administrative complaint with the Division of Labor Standards Enforcement (DLSE). You’ll complete Form RCI 1, the Retaliation Complaint Form, available online through the Department of Industrial Relations website or at any Labor Commissioner field office.3Department of Industrial Relations. DLSE Form RCI-1 – Retaliation Complaint
The form asks you to describe the protected activity, the adverse action, the dates of each, and any witnesses. Witness identities stay confidential unless the investigation requires disclosure.
You have one year from the date of the adverse action to file.4Division of Labor Standards Enforcement. Retaliation and Discrimination Complaints Miss that deadline and the Labor Commissioner will not investigate administratively, though a court claim may still be available depending on the circumstances.
Once the DLSE accepts the complaint, it investigates by gathering evidence from both sides. If it finds sufficient evidence of retaliation, it will order remedies or pursue a settlement. If it finds insufficient evidence, it dismisses the case. A dismissal doesn’t end everything; you can still file a civil lawsuit.4Division of Labor Standards Enforcement. Retaliation and Discrimination Complaints
Suing in Court Instead
You can also file a civil lawsuit in California Superior Court. Unlike some federal employment laws, Section 98.6 does not require you to exhaust the administrative process first. Going straight to court lets you use full discovery to compel emails, internal documents, and communications that may reveal the employer’s motive, and it puts your case in front of a judge or jury with a broader range of damages available.
The trade-off is that litigation is slower and more expensive than the administrative route. The statute of limitations for a civil suit under 98.6 may also differ from the one-year administrative deadline, so talking to an employment attorney early protects both paths.
What You Can Recover
A worker who was fired or otherwise punished is entitled to reinstatement to the former position and reimbursement for lost wages and benefits caused by the employer’s action.1California Legislative Information. California Code LAB 98.6 – Employee Retaliation and Discrimination Back pay covers earnings you would have received between the retaliation and the resolution of your claim, along with the value of lost benefits like health insurance or retirement contributions.
Job applicants denied employment because of protected activity are entitled to employment (the employer must hire them) plus reimbursement for lost wages and benefits.1California Legislative Information. California Code LAB 98.6 – Employee Retaliation and Discrimination
On top of that, the employer faces a civil penalty of up to $10,000 per employee for each violation. The penalty is paid to the affected employee, not to the state.1California Legislative Information. California Code LAB 98.6 – Employee Retaliation and Discrimination
The statute also carries a criminal provision. An employer who willfully refuses to hire, promote, or restore an employee after that employee has been determined eligible through a grievance procedure, arbitration, or legally authorized hearing is guilty of a misdemeanor.1California Legislative Information. California Code LAB 98.6 – Employee Retaliation and Discrimination Prosecutions are rare, but the provision exists.
Section 98.6 and Section 1102.5 Are Not the Same
Section 98.6 is sometimes confused with Labor Code Section 1102.5, California’s whistleblower statute. Both prohibit retaliation and both carry the $10,000 penalty, but they protect different things. Section 98.6 covers workers who assert their own labor rights, like wage claims, sick leave, or meal and rest breaks. Section 1102.5 covers workers who report suspected violations of law, whether the violation affects them personally or not, and it also protects employees who refuse to participate in illegal activity and extends protection to family members.5California Legislative Information. California Code LAB 1102.5 – Whistleblower Retaliation The same facts can sometimes support claims under both; an employment attorney can sort out which apply to your situation.