What's Happening?
The California Court of Appeal has ruled that violations of Labor Code section 432.2, which prohibits mandatory polygraph testing for employees, can support a wrongful termination claim. This decision
came from the case of Steven McDoniel, an assistant grower at Kavry Management, LLC, who was terminated after failing a polygraph test. The court found that McDoniel was not given proper notice of his rights under the statute, which mandates informing employees of their right to refuse such tests. The jury awarded McDoniel $100,000 in damages, a decision upheld by the appellate court. However, the court reversed a $212,000 attorney fee award, citing improper retroactive application of a related statute.
Why It's Important?
This ruling underscores the importance of employee privacy rights and the legal risks employers face when conducting polygraph tests. The decision highlights the need for employers to comply with statutory requirements, including providing clear notice to employees about their rights. The case serves as a cautionary tale for businesses, particularly in California, where privacy laws are stringent. Employers must audit their practices to avoid potential legal challenges and financial liabilities arising from wrongful termination claims.
What's Next?
Employers in California are advised to review their internal investigation procedures and ensure compliance with Labor Code section 432.2. Legal counsel should be consulted to mitigate risks associated with polygraph testing. The ruling may prompt other states to re-evaluate their policies on employee testing and privacy rights, potentially leading to broader legislative changes.
