Whistleblowing. Gabor Nagy was a car salesperson for Whittlesey Automotive Group. Whittlesey asked Nagy to allow some of his phone conversations with "customers" to be recorded. The "customers" were actually employees of a company Whittlesey had hired
to conduct a sales training program. Nagy refused to consent. He was eventually fired for his "negative attitude." Nagy filed a suit in a California state court against Whittlesey. He cited a state statute that makes eavesdropping a crime and alleged in part that he was wrongfully terminated in violation of public policy. Will the court agree? Discuss fully.
Whistleblowing
Yes. The California Court of Appeal reversed the judgment of the lower court and remanded the case. The state appellate court pointed out that "[a]n employer may be held liable in tort for terminating an otherwise ‘at will' employee if the termination violates public policy." The court explained that "otherwise the threat of discharge could be used to coerce employees into committing crimes, concealing wrongdoing, or taking other action harmful to the public." The court reasoned that "[w]here, as here, employment is conditioned on the employee's agreement to be a crime victim, public policy is equally violated."
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