Navigating a situation where you witness illegal conduct at work can feel like standing on a razor’s edge. When you aren’t the direct victim—meaning the harassment, wage theft, discrimination, or safety violation isn’t happening directly to you—it is easy to feel frozen by the “bystander effect” or terrified of becoming a target yourself.

However, California boasts some of the strongest statutory whistleblower protections in the United States. Under California law, an employee who reports, discloses, or opposes illegal workplace activity is fiercely protected from employer retaliation.

Whether you are a bystander to wage theft, systemic discrimination, environmental violations, or unsafe working conditions, here is a comprehensive guide to handling illegal conduct at work under California labor law.

California Law: Understanding Illegal Conduct

Are you certain what you saw is illegal conduct in the workplace? It’s important to know what constitutes workplace violations.

Corporate Fraud and Public Deception: Protects workers from reporting their employer for committing crimes like consumer fraud, falsifying financial or public safety records, running scams, and tax evasion.

Discrimination, Harassment, or Retaliation: Protects workers who report discrimination, harassment, or retaliation based on ancestry, age, color, disability, gender expression/identity, genetics, marital status, medical information, military/veteran status, national origin, race, religion, reproductive health decision-making, sex/gender, or sexual orientation.

Labor Code & Wage Violation: Protects workers who report violations of wage and overtime laws, including misclassifying employees as independent contractors and refusing to pay overtime hours.

Workplace Health and Safety Violations: Protects workers who report situations where coworkers were exposed to hazardous materials and unsafe machinery.

How California Law Protects Whistleblowers

Like many states, California employment is “at-will.” At-will employment provides employers and employees the right to terminate or leave a position at any time for any reason. Despite California being an at-will state, retaliation for whistleblowing is forbidden.

California’s whistleblower law prevents your employer from making or enforcing any action that stops you from disclosing information to someone at work, a government agency like OSHA, or law enforcement. Your HR team couldn’t make it a rule that you will be penalized if you report to OSHA before coming to them.

You can report behavior, even if you don’t have undeniable proof. If you have a reasonable suspicion that something illegal took place, you can and should report it.

Once you report it to an outside agency or organization or your internal management or HR team, you’re protected from being:

• Blocked by the company for promotions or pay increases
• Demoted
• Excluded from email chains, meetings, or workplace chats
• Fired/terminated
• Harassed
• Reassigned to another department
• Scheduled for fewer hours
• Suspended
• Switched to another shift
• Threatened that the company will report your immigration status
• Treated so poorly that you feel you have to quit or resign

Under the Fair Employment and Housing Act (FEHA), you’re also protected if you’re called to testify or answer questions about the complaint. Reasonable Cause Standard: You do not need absolute proof that a law was broken. You only need a reasonable belief that the conduct violates a local, state, or federal rule or regulation.

SB 497: What About the Burden of Proof?

SB 497 went into effect on January 1, 2024. This bill delves into the burden of proof in claims of retaliation. Any worker fired, disciplined, or subject to adverse action within 90 days of whistleblowing has a strong case of retaliation.

This puts the burden of proof on the employer. They have to be able to prove they had a legitimate reason for the action that is in no way retaliatory. It’s not the employee’s responsibility to prove retaliation if 90 days haven’t passed.

What to Do If You Witness Illegal Actions at Work

If you witness something illegal at work, you need to report it. It doesn’t matter if you’re not the victim. Using this approach, you protect yourself and ensure that illegal conduct doesn’t impact you and others at work.

Keep records of dates, times, possible witnesses, and details regarding the issue. Do not store this on your work computer or work-owned cloud storage.

Save any emails or timecards and take screenshots of chats that back up your complaint.
Determine if it’s safe to report the situation internally or if you should go straight to an agency like Cal/OSHA, the California Civil Rights Department, or the Department of Industrial Relations.

Submit the report following company guidelines that are outlined in your employee handbook or with the appropriate agency if you don’t feel safe reporting it internally.
Keep copies of everything in a safe location, such as a locked safe at home.

Watch for any workplace retaliation.

Talk to a California attorney specializing in employment law.

California is a two-party consent state, which means you cannot secretly record a phone conversation or water cooler chat unless the other party consents to it. Make sure you’re keeping written notes and any digital evidence, and avoid committing a crime by recording someone without their consent.

When the illegal activity involves actions of the HR team or people you’re supposed to report to, you’ll need to go to an external agency to make your report. These are the agencies you’ll work with and make the report to.

Corporate Fraud/Tax Evasion: California Attorney General’s Office or the local District Attorney
Criminal Activities: California Attorney General’s Office or the local District Attorney
Meal Break/Rest Break Violations: Division of Labor Standards Enforcement/Labor Commissioner’s Office
Unsafe Working Conditions: California Division of Occupational Health and Safety
Wage Theft or Unpaid Overtime: Division of Labor Standards Enforcement/Labor Commissioner’s Office
Workplace Discrimination: California Civil Rights Department

After filing a complaint, watch for retaliation. Anyone can retaliate. It could be management or the worker you named as the person being treated improperly. For example, you witness sexual harassment of a new female employee. You report the incident, and she retaliates by harassing you.

When to Talk to a California Employment Attorney

You’ve witnessed some form of workplace violation and want to speak up. Don’t be afraid to stand up for your and your coworker’s rights. Talk to Shegerian Conniff to learn how to proceed.

Our California employment attorneys can help you determine if what you’ve seen falls under the legal definition of illegal conduct. We’ll help protect you against retaliation as a whistleblower.

We can also help you determine the next steps to take. If you’ve already done that and are being retaliated against, we’ll help you file a civil lawsuit, which helps you recover lost wages, emotional damages, and attorney fees.

By understanding California’s legal protections, you protect your career and your rights. You also don’t let your employer get away with unlawful or even dangerous behavior. Call us today to schedule a free consultation.