California Retaliation Case Could Help Determine the Evidentiary Standard for Claims

In recent news, the Supreme Court will consider the question of which evidentiary standard should be used for certain retaliation claims.

The Case: Lawson v. PPG Architectural Finishes, Inc.

The Court: Supreme Court of California

The Case No.: 19-55802

The Plaintiff: Lawson v. PPG Architectural Finishes, Inc.

Wallen Lawson, the plaintiff in the case, started working as a Territory Manager for PPG in June 2015. As a Territory Manager, Lawson’s duties include merchandising products in Lowe’s Home Improvement store displays were stocked, and displays were in good condition. While working as Territory Manager, Lawson reported directly to Clarence Moore, a Regional Sales Manager. Moore oversaw approximately a dozen Territory Managers, including Lawson. Territory Manager job performance was measured based on (1) his ability to meet sales goals each month, and(2) scores received during what PPG called “Market Walks.” The Market Walk involved the Territory Manager and Regional Sales Manager visiting various stores together so the Regional Sales Manager could ascertain if Territory Managers had successfully built a relationship with the retailer.

The Allegations: Lawson v. PPG Architectural Finishes, Inc.

The plaintiff claims he was directed by his supervisor to manage a product in a way that fraudulently pulled a slow-selling product from inventory. The plaintiff refused and reported the situation to the PPG ethics hotline (twice). The second time Lawson made a report to the ethics hotline, there was an investigation. During that same time, Lawson began receiving poor ratings for his performance, was given a performance improvement plan, and was eventually fired.

The Defendant: Lawson v. PPG Architectural Finishes, Inc.

The Defendant in the case, PPG Architectural Finishes, Inc. (“PPG”), manufactures paints, stains, caulks, and other products for homeowners and professionals, and sells its products to retailers such as The Home Depot, Menards, and Lowe’s.

Details of the Case: Lawson v. PPG Architectural Finishes, Inc.

After the plaintiff was fired, he filed a complaint against PPG alleging that he was retaliated against as a whistleblower. After applying the McDonnell Douglas test, the trial court concluded the plaintiff failed to carry his burden to raise triable issues of fact, and the court granted the defendant's motion for summary judgment. The plaintiff appealed to the 9th U.S. Circuit Court of Appeals, arguing that the trial court should have applied the evidentiary standard outlined in Section 1102.6 which would have transferred the burden of proof to the employer once the plaintiff demonstrated by clear and convincing evidence that the whistleblower activity was a contributing factor in the retaliatory act. The Ninth Circuit approached the Supreme Court of California with the question of which takes precedence when retaliation claims are brought pursuant to section 1102.5 of California’s Labor Code: the evidentiary standard set forth in section 1102.6 of the California Labor Code or the McDonnell Douglas test? The Supreme Court will need to determine which should be used as the relevant evidentiary standard.

If you have questions about California employment law or if you need to discuss retaliation in the workplace, please get in touch with Blumenthal Nordrehaug Bhowmik DeBlouw LLP. Experienced employment law attorneys are ready to assist you in various law firm offices located in San Diego, San Francisco, Sacramento, Los Angeles, Riverside, and Chicago.