An employee reports to a state agency that the contractor is paying workers under the table to evade payroll taxes. The contractor then demotes her. This is best characterized as:

Giải thích

Labor Code §1102.5 protects employees who report suspected legal violations to a government agency (or internally) from retaliation. Demoting an employee for reporting payroll-tax evasion is unlawful whistleblower retaliation, exposing the employer to reinstatement, back pay, and civil penalties. It is neither lawful discretion nor a matter solely for tax authorities; the employee has protected-activity remedies.