There are many different laws and regulations that companies in California must follow. There are many different reasons for these laws, but generally there are public policy reasons for them that benefit the public as a whole. So, the government and regulatory agencies have a specific interest in ensuring that the laws are actually followed by the various companies.
In order to enforce these laws and regulations the government generally needs the assistance of employees within the company that have first-hand knowledge of the illegal activity. However, companies also have an incentive to ensure that the government does not learn of the activity and therefore may retaliate against employees who either report illegal activity or participate in an investigation or case against the company. This is intended to ensure others do not report or participate in the future.
So, to protect these employees, the law prohibits employers from whistleblower retaliation against employees who either report violations or participate in investigations. If an employer retaliates against a whistleblower, the law can impose a civil fine on the employer of up to $10,000.
Most companies in California follow the law, but the following the various laws and regulations can add extra costs to the company and therefore the company may violate them in order to make more money. The employees within the company may know about the actions and report the illegal activity. Companies are prohibited from retaliating against these employees. If they do so, they may be subject not only fines. It is important that employees understand their rights as a whistleblower, so they can exercise them when necessary.