A recent jury verdict in Los Angeles shows a directional shift in the legal landscape in California regarding whistleblower rights and workplace safety. In the case Valla v. Dignity Health, LA Case No. 20STCV30610, the plaintiff’s attorneys presented extensive evidence showing how the employer retaliated against their Chief Nursing Officer after she advocated for patient safety. The jury was unanimous in their verdict — awarding $5 million in economic damages and $22.5 million in compensatory damages for a total of $27.5 million. 

The case and subsequent verdict are a cautionary tale for employers. It demonstrates the importance of taking safety concerns seriously, having proper investigation strategies in place, and maintaining clear documentation procedures to prevent similar outcomes. While there is no way to prevent potential post-termination actions, whether that be filing a workers’ compensation claim or an employment lawsuit, you can take steps to ensure that you and your business are protected. 

How To Protect Yourself  

  • Investigate all complaints thoroughly – All concerns raised by employees around safety or harassment should be formally investigated and documented. Standardizing investigations ensures they are thorough, timely, free from bias, and remain consistent.  
  • Meet with employees to communicate outcomes – A follow-up meeting with the parties involved, in person or via video, should be conducted, along with providing a written summary of the findings. This helps to protect the employer against allegations that the concern was ignored. 
  • Meticulous documentation – Ensure the reasons for any adverse actions are documented in detail, and independent of any concerns the employee may have raised.  This supports and demonstrates objective decision-making. It is especially important regarding performance issues or coaching. 
  • Train managers and supervisors – Management should be trained to document and take the appropriate actions when concerns are voiced. This type of training can include best practices for record keeping and documentation, coaching and performance conversations, as well as how to respond to employee concerns. 
  • Review documentation protocols and update HR practices – Clear policies should be implemented related to code of conduct, compliance protocols, and disciplinary procedures.  All complaints and performance conversations should be thoroughly documented, including a summary, date, time, and the individuals involved in the conversation. Continue to monitor the actions of employees and managers after these conversations occur to detect anomalies early and mitigate risk. 

As demonstrated by the recent verdict, documentation is becoming increasingly vital in HR and workers’ compensation settings. Ultimately, protecting your company means being prepared – not reactive. Prioritizing employee concerns, documenting performance issues objectively, and maintaining fair and consistent processes won’t eliminate all legal risk, but they will place your organization in the strongest possible position should a dispute occur. 

Current policyholders are encouraged to visit our Policyholder Perks section of our website for more resources to support your business.