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Over $1 Million Settlement in a California Workplace Harassment and Retaliation Case
Summary: Fernald & Zaffos resolved a California workplace harassment, retaliation and wrongful termination matter for an executive assistant through a settlement of more than $1 million. Our client alleged that her direct supervisor harassed and threatened her, including by threatening to release private intimate recordings of her, and that her employer took no corrective action after she reported the conduct and then terminated her. The claims arose under the Fair Employment and Housing Act (Gov. Code sections 12940 and 12923), Labor Code section 1102.5, Civil Code section 1708.85 and California public policy. The matter settled at a pre-litigation mediation, before any lawsuit was filed, so no court or jury made findings on the allegations.
Case at a glance
Case type
Workplace harassment, retaliation and wrongful termination
Forum
Private pre-litigation mediation before a retired judge. Had the case not settled, the claims would have been filed in California Superior Court, Orange County.
Our client
A former executive assistant who reported directly to a senior executive
Opposing parties
The employer, a financial services and real estate management company, and the client’s direct supervisor
Claims presented
Harassment and failure to prevent harassment (Gov. Code sections 12940 and 12923); wrongful termination in violation of public policy; whistleblower retaliation (Labor Code section 1102.5); negligence; intentional infliction of emotional distress; battery; nonconsensual distribution of intimate images (Civil Code section 1708.85); unpaid overtime and final wages
Outcome
Settled before a lawsuit was filed. Settlement of more than $1 million.
Background and what was alleged
The facts below are our client’s position as presented in mediation. They are allegations, and no court or jury decided them.
Our client worked as an executive assistant and reported directly to a senior executive of the company. Her employment lasted only a few months. She had no write-ups or reprimands and, according to her, was regularly praised for her work.
She alleged that her supervisor:
- Engaged in a pattern of verbal harassment, including screaming outbursts, destroying electronics and constant calls and texts.
- Used illegal drugs and alcohol heavily and pressured her to use drugs at work.
- Made threats of violence, including against a third person, a threat our client says was captured in a transcript.
- Made unwanted physical contact with her.
- Recorded private intimate videos and images and then threatened to distribute them.
Our client reported the supervisor’s conduct to the company’s owner and to its human resources department. She alleged that no corrective action was taken, that the supervisor was not disciplined, and that she was terminated after she complained. She also alleged that she worked overtime and off-the-clock hours without being paid overtime, and that she suffered severe emotional distress. A licensed clinical psychologist evaluated her, and the evaluation supported her position that significant trauma-related symptoms were connected to the workplace events.
How the case resolved
The case was resolved through pre-litigation mediation. Because it settled before a lawsuit was filed, there was no complaint, no discovery, no trial and no ruling by a judge or jury. The settlement is not an admission of liability by any party, and the allegations described above remain allegations.
What this case shows
- Employers face significant liability for supervisor harassment. Under the Fair Employment and Housing Act, an employer is strictly liable for harassment by a supervisor, and must also take all reasonable steps to prevent harassment (Gov. Code section 12940(j) and (k)).
- Reporting misconduct is protected activity. Labor Code section 1102.5 and California public policy protect employees who report unlawful conduct or unsafe workplace conditions from retaliation, including termination.
- Threats to share private images can create separate liability. Civil Code section 1708.85 gives a person a civil claim against someone who intentionally distributes intimate images or recordings without consent.
- Serious claims can resolve before a lawsuit is filed. Early mediation lets the parties resolve a dispute without a public filing, discovery or trial.
Frequently asked questions
Did this case go to trial?
No. The case settled at a pre-litigation mediation, before any lawsuit was filed. No court or jury made findings on the claims.
What claims were presented in this workplace harassment case?
Our client’s claims included harassment and failure to prevent harassment under the Fair Employment and Housing Act, wrongful termination in violation of public policy, whistleblower retaliation under Labor Code section 1102.5, negligence, intentional infliction of emotional distress, battery, a claim under Civil Code section 1708.85, and unpaid overtime and final wages.
Can an employer be held responsible for a supervisor's harassment in California?
Yes. Under Government Code section 12940(j), an employer is strictly liable for harassment by a supervisor. An employer can also be liable under Government Code section 12940(k) if it fails to take all reasonable steps to prevent harassment. In this matter, our client alleged that the company knew of the supervisor’s conduct and took no corrective action.
Is it illegal to fire an employee for reporting harassment or misconduct?
Yes. Labor Code section 1102.5 prohibits retaliation against employees who report suspected violations of law, and California also recognizes wrongful termination in violation of public policy. In this matter, our client alleged that she was terminated after she reported her supervisor’s conduct and that the company took no action against him.
What is Civil Code section 1708.85?
Civil Code section 1708.85 allows a person to sue someone who intentionally distributes intimate images or sexual recordings of them without their consent. In this matter, our client alleged that her supervisor threatened to distribute private recordings of her, and the claims presented in mediation included a claim under this statute.
Can a harassment or retaliation claim settle before a lawsuit is filed?
Yes. Parties can resolve a dispute through pre-litigation mediation, as happened here. The advantage is that the matter can be resolved without a court filing, discovery or a trial, although the result depends on the facts of each case.
Does this result guarantee the same outcome in another case?
No. Every case depends on its own facts, evidence and the law that applies. A settlement in one case does not predict the result in another, and you should speak with an attorney about your own situation.
About the legal team
Fernald & Zaffos represents employees in California workplace harassment, retaliation and wrongful termination matters.
Attorney advertising. Case results depend on the facts and legal issues of each case and do not guarantee a similar outcome. Names of the parties have been omitted. The case description reflects our client’s position, no court or jury made findings, and the settlement is not an admission of liability by any party. This page is general information and is not legal advice.
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