California Appeals Court Says Managers Not Liable for Whistleblower Retaliation
California court ruled supervisors can't be held personally liable for whistleblower retaliation.
Why it matters: This ruling clarifies employer vs. manager liability under California whistleblower law, impacting how companies handle internal compliance and retaliation risks.
- Ruling issued September 28, 2026 by California Court of Appeal in Chaudhry v. State of California.
- Based on Labor Code section 1102.5, individual supervisors are not personally liable for retaliation claims.
- Employer entities remain liable for whistleblower retaliation under this statute.
- Decision aligns with prior 2008 California Supreme Court ruling on supervisor liability under FEHA.
On September 28, 2026, the California Court of Appeal addressed liability in whistleblower retaliation cases in Chaudhry v. State of California. The court concluded that individual supervisors cannot be held personally liable under California Labor Code section 1102.5. This statute protects employees from retaliation for whistleblowing.
The court reasoned that section 1102.5 is ambiguous on individual liability, and previous decisions interpreting similarly worded statutes support this interpretation. Specifically, it follows the 2008 California Supreme Court decision in Jones v. The Lodge at Torrey Pines Partnership, which found no personal liability for managers under the Fair Employment and Housing Act (FEHA).
While the ruling protects individual supervisors, it confirmed employers can still face liability for retaliation against whistleblowers. The court noted the plaintiff adequately alleged compliance with procedural requirements under the Government Claims Act related to her claim against the employer.
This decision offers clarity for corporate legal and compliance teams navigating whistleblower investigations and retaliation claims. It delineates risks by specifying that retaliation claims arise against the employing entity, not individual supervisory personnel. This distinction matters for structuring defenses and managing internal accountability under California labor law.
By the numbers:
- September 28, 2026 — date of California Court of Appeal ruling
- Labor Code section 1102.5 — statute governing whistleblower retaliation claims
- 2008 — year of California Supreme Court’s Jones decision on manager liability under FEHA