Cal. Business and Professions Code § 2878.1

(a) If a licensed vocational nurse has knowledge that another person has committed any act prohibited by Section 2878, the licensed vocational nurse shall report this information to the board in writing and shall cooperate with the board in furnishing information or assistance as may be required. (b) Any employer of a licensed vocational nurse shall report to the board the suspension or termination for cause, or resignation for cause, of any licensed vocational nurse in its employ. In the case of licensed vocational nurses employed by the state, the report shall not be made until after the conclusion of the review process specified in Section 52.6 of Title 2 of the California Code of Regulations and Skelly v. State Personnel Bd. (1975) 15 Cal.3d 194. This required reporting shall not constitute a waiver of confidentiality of medical records. The information reported or disclosed shall be kept confidential except as provided in subdivision (d) and shall not be subject to discovery in civil cases. (c) An employment agency or nursing registry shall report to the board the rejection from assignment of a licensed vocational nurse by a health facility or home health care provider due to acts that would be cause for suspension or termination as described in subdivision (d). (d) For purposes of this section, “suspension, termination, or resignation for cause” or “rejection from assignment” are defined as suspension, termination, or resignation from employment, or rejection from assignment, for any of the following reasons: (1) Use of controlled substances or alcohol to the extent that it impairs the licensee’s ability to safely practice vocational nursing. (2) Unlawful sale of a controlled substance or other prescription items. (3) Patient or client abuse, neglect, physical harm, or sexual contact with a patient or client. (4) Falsification of medical records. (5) Gross negligence or incompetence. (6) Theft from patients or clients, other employees, or the employer. (e) Failure of an employer to make a report required by this section is punishable by an administrative fine not to exceed ten thousand dollars ($10,000) per violation. (f) Pursuant to Section 43.8 of the Civil Code, no person shall incur any civil penalty as a result of making any report required by this chapter. (g) The board shall implement this section contingent upon the necessary funding in the annual Budget Act. (h) For purposes of this section, “employer” includes employment agencies and nursing registries.