Legal Question in Business Law in California

Re: Annual performance review

If both fact sets (negative review, excellent performance) and the motive (denial of wage increase), the employee would have a decent cause of action against the reviewing officer for some kind of economic tort; and possibly against the employer as well if it could also be shown that the employer conspired. There is also the principle that the employer is responsible for the torts of the employee. I think this sounds like an expensive and difficult suit, with proof problems and a number of defenses potentially available. Check with an employment law specialist.