I only wish that you had come here before complaining to your employer, because had you complained instead to law enforcement about the other employee, e.g., for driving on a suspended license, etc., then you would have a clear claim for violation of the California Whistleblower Code (Labor Code 1102.5).
You may still have a legal claim, but it would be a lot more difficult to prove.
Public policy may be violated by retaliating against an employee for internal disclosure of “illegal, unethical or unsafe practices” which affect the public at large, not merely the employer. Green v. Ralee Eng. Co. (1998) 19 C4th 66, 85, 78 CR2d 16, 27 (complaining internally that company was shipping defective parts to airplane assemblers which endangered airline passenger safety); Collier v. Sup.Ct. (MCA, Inc.) (1991) 228 CA3d 1117, 1123, 279 CR 453, 455 (reporting to management that company executives shipping promotional records at no charge were violating laws prohibiting bribery, kickbacks, embezzlement and tax evasion, affecting third parties (artists, retailers) as well as tax authorities).
This seems to align with your allegations. But, you'll have to discuss the matter with local counsel, because it could be a fairly difficult case to prove, and many attorneys will back away, because they don't want to take the financial risk of a contingency agreement.
For an employment rights attorney referral, see this link
Hope this helps.
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