What’s new in California employment law: Court of Appeal holds managers and supervisors cannot be sued individually for Labor Code section 1102.5 retaliation

In a rare win for management in California, on September 28, 2026, in Chaudhry v. State of California, the California Court of Appeal, First Appellate District, held that employees cannot sue individual managers or supervisors in their individual capacities for retaliation under Labor Code section 1102.5. The decision, certified for publication, is the first by a California appellate court to resolve this question since the 2014 amendments to this statute.

The Plaintiff worked as a dental assistant for the California Department of Corrections and Rehabilitation (CDCR) at a prison medical facility. Beginning in 2018, she reported contaminated protective equipment and other workplace safety concerns to her supervisor and Cal/OSHA. The Plaintiff alleged CDCR retaliated against her by subjecting her to unwarranted discipline and suspension and by obstructing her work after the State Personnel Board overturned her first termination. After CDCR rescinded a second termination and reinstated her, the Plaintiff resigned and pursued retaliation claims under section 1102.5 against the State, CDCR, and three individual supervisors.

Section 1102.5 bars retaliation by an employer “or any person acting on behalf of the employer.” The court acknowledged that, viewed in isolation, “any person” could theoretically encompass individual managers and supervisors, but ultimately concluded that the statutory scheme forecloses that interpretation. Neighboring provisions of the statute place responsibility for a supervisor’s conduct on the employer, and section 1102.6 assigns the burden of proving a same-decision defense to the employer alone. The court also found no evidence in the legislative history that the Legislature intended to impose personal liability on supervisors. Following the reasoning of Jones v. Lodge at Torrey Pines Partnership and Reno v. Baird, which declined to extend individual liability for retaliation under similar language in the Fair Employment and Housing Act, the court expressly held: “a plaintiff cannot sue an individual manager or supervisor for retaliation under section 1102.5.” The decision aligns with the overwhelming majority of federal district courts that have addressed the question.

Takeaways for employers

• Employer liability is unaffected. Although managers and supervisors cannot be sued individually under section 1102.5, the employer remains liable for their retaliatory conduct. Employers should maintain existing retaliation training and oversight.
• Individual exposure may persist under other statutes. The court’s holding is limited to section 1102.5. Other statutes and common law theories may still attempt to impose personal liability on managers and supervisors.
• Anticipate a shift in pleading strategy. Plaintiffs will likely omit individual managers and supervisors from section 1102.5 claims and direct those claims at the employer, including through additional constructive discharge theories.

This is a positive development for California employers and their managers and supervisors. Reed Smith will continue to monitor developments, including any petition for review.