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California expands anti-retaliation protections

11/05/20

Author: ADP Admin/Wednesday, November 4, 2020/Categories: Compliance Corner , State Compliance Update, California

California has enacted legislation (Assembly Bill 1864) that expands the anti-retaliation protections for employees of businesses that provide consumer financial products or services to residents of the state. Assembly Bill 1864 takes effect January 1, 2021.

Under Assembly Bill 1864, businesses that provide consumer financial products or services to California residents are prohibited from taking adverse action against any covered employee or their authorized representative because they have:

  • Filed or instituted, or caused to be filed or instituted, any proceeding under any consumer financial law; or
  • Objected to, or refused to participate in, any activity, policy, practice, or assigned task that the employee or other such person reasonably believed to be in violation of any law, rule, order, standard, or prohibition, subject to the jurisdiction of the Division of Corporations and Financial Institutions.

For the purposes of the law, the term "covered employee" means any individual performing tasks related to the offering or provision of a consumer financial product or service.

Note: Certain businesses are exempt from the law. See the text of the law for details.


Compliance Recommendations:

Covered employers should review their anti-retaliation policies, practices, and training to ensure compliance with Assembly Bill 1864. Please contact your dedicated service professional with any questions.

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Tags: 11/05/20

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