Employee Discharged in Violation of Public Policy Entitled to Compensatory And Possibly Punitive Damages

Issue

In Freund v. Nycomed Amersham, (2003 WL 22389196), the Ninth Circuit Court of Appeals addressed the issue of whether an employee, who had been wrongfully terminated in violation of public policy, was entitled to both compensatory and punitive damages.

Facts

Employee, Jeffrey R. Freund, worked for Employer, Nycomed Amersham, as a Radiation Safety Officer in a nuclear pharmacy. After Employee complained several times about workplace health and safety, his supervisor gave him a negative performance evaluation and a warning for having a poor attitude. Subsequently, Employee was fired due to “disruptive behavior.” Employee sued, alleging that Employer wrongfully terminated him in violation of public policy. Specifically, Employee argued that Employer violated section 6310 of the California Labor Code, which prohibits an employer from firing an employee for raising bona fide complaints relating to workplace health and safety. A jury found that Employee had been wrongfully terminated and awarded him $1,130,000 in compensatory damages and $1,150,000 in punitive damages. Employer then requested the trial court to grant judgment in its favor, in spite of the jury’s verdict. The trial court granted Employer’s request in part and set aside the $1,150,000 in punitive damages. However, the trial court agreed that Employee had been wrongfully terminated and upheld the $1,130,000 in compensatory damages.

Appellate Court Decision

The Ninth Circuit Court of Appeals determined that Employee had presented a good case of wrongful discharge in violation of public policy, reasoning that Labor Code section 6310 may serve as the basis for a claim of wrongful termination in violation of public policy. As long as an employee makes a health or safety complaint in good faith, the employee need not identify an actual violation of other workplace safety statutes or regulations. In addition to recovering back pay and reinstatement as provided by section 6310, Employee could also recover front pay and emotional distress damages, as well as punitive damages.

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