The Law Changed After The Demurrer Was Sustained But Before The Appeal Was Heard.

The director of a clinical laboratory informed executive staff and owners of the lab that there were numerous violations of state and federal laws in the lab’s operations. The director was terminated, and thereafter, filed suit alleging violation of Labor Code section 1102.5. The trial court sustained defendants’ demurrer because the plaintiff did not exhaust administrative remedies prior to filing an action in superior court. After judgment was entered and plaintiff’s appeal was filed, the Legislature enacted Labor Code section 244(a), and amended Labor Code section 98.7, which provide that an individual is not required to exhaust administrative remedies. After giving the parties an opportunity to file briefs, the Court of Appeal reversed the judgment, stating: “We conclude that because the amendments merely clarified existing law, they may be applied to this case without transgressing the general rule against the retroactive application of statutes.” (Satyadi v. West Contra Costa Healthcare Dist. (Cal. App. First Dist., Div. 5; December 31, 2014) 232 Cal.App.4th 1022 [182 Cal.Rptr.3d 21].)