The term “blowing the whistle” is a legal phrase describing an individual who exposes malpractice in their workplace. Laws at the federal and state levels safeguard workers who report malpractice. Your company’s best interest is encouraging employees to raise concerns via internal channels, stressing confidentiality and support. It is also essential to review your company’s whistleblower and speak-up policies.
What is a Whistleblower?
Whistleblowers are people who expose misconduct and wrongdoing by companies, government agencies, or individuals. They do this to hold these people accountable for their actions and protect the public from harm. The motivation behind whistleblowing varies from person to person and can range from pursuing financial gain to seeing a just cause prevail. Many countries have laws to protect whistleblowers and help them report fraud, corruption, or other allegations of illegal activity. Employees can blow the whistle internally, usually to their manager or supervisor, or they may go to the media or police. They often do this if they need more faith in their organization’s investigation process or reporting procedure or believe the information should be made public.
It is essential to understand the difference between a whistleblower and a leaker. A whistleblower follows the legal process prescribed by federal law to bring allegations of wrongdoing to light, whereas a leaker discloses secrets without following this process. It can be a violation of the Espionage Act and can result in criminal charges under that law.
What is Retaliation?
Class action lawsuits involving material discovered by whistleblowers are common in the United States. Thirty, forty, or thousands of workers may be named in a class action lawsuit. Another name for a whistleblower lawsuit is a qui tam lawsuit. Under the False Claims Act, whistleblowers are shielded from retaliation. When an employer retaliates against a whistleblower because of the employee’s actions, this is known as whistleblower retaliation. Typically, this involves firing the whistleblower, demoting them, or denying them a promotion. It can also reduce their pay or limit their access to job benefits. Retaliation may even take the form of verbal or physical abuse or sexual harassment in certain situations. Employers cannot take adverse action against workers who report illegal or dangerous business practices. An employee may file a lawsuit in court to recover damages if their employer retaliates against them. If you suspect your employer is retaliating against you, you should immediately contact a lawyer for advice. An experienced retaliation/whistleblower attorney can help you build your case and fight for justice.
What is the Reward for a Whistleblower?
Most countries with whistleblower reward programs offer incentives to individuals who report illegal conduct and help authorities uncover fraud. Whistleblowers are typically rewarded with a percentage of the money the government recovers due to their information. The United States has four main whistleblower rewards programs: the Securities and Exchange Commission program, the Commodity Futures Trading Commission (CFTC) program, the Internal Revenue Service (I.R.S.) program, and the False Claims Act program. To be eligible for a whistleblower award, an individual must first provide the government with original information about misconduct. This information must not be publicly available to qualify as original, and the amount of work performed by a whistleblower and their attorney in assisting with a prosecution will also impact award amounts.
In cases involving healthcare billing fraud, government contract fraud, and defense contractor fraud, the U.S. Department of Justice awards individuals between 15-30% of the sanctions collected by the government. For cases involving environmental, health and safety, or any other type of wrongdoing in the public interest, the government may consider more when making share awards.
What is the Statute of Limitations for a Whistleblower Case?
Many whistleblower laws include anti-retaliation provisions and financial compensation. For example, the False Claims Act provides individuals with a cause of action against their employer for firing, demoting, harassing, or otherwise discriminating against them in retaliation for reporting fraud to the government. In addition, the F.C.A. has whistleblower reward programs that offer a percentage of the government’s monetary sanctions in enforcement actions. Workers who disclose infractions related to the cleanup of hazardous waste sites are shielded by additional legal provisions, including the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA). Likewise, truck drivers are protected by the Surface Transportation Assistance Act (STAA), 49 U.S.C. SS 31105, which prohibits retaliation against them for submitting safety complaints to OSHA.
The statute of limitations for a whistleblower case can vary depending on the law and the type of retaliation. For example, a 180-day clock starts on the date each distinct act of retaliation takes place in an action brought against an agency for violating the Fair Labor Standards Act. It contrasts a retaliation claim against the federal government, which has a single, three-year statute of limitations.
What are the Damages of a Whistleblower Case?
The damages for a whistleblower case vary by law and program. For instance, under the False Claims Act, successful whistleblowers in cases involving false claims may be awarded anywhere from fifteen to thirty percent of the total money the government can recoup. A prevailing whistleblower may also be awarded prejudgment interest, calculated from the time of the retaliation to the date the court entered judgment. In addition, a prevailing whistleblower is entitled to back pay. In the fight against fraud, waste, and misuse of public funds, whistleblowers are crucial. They can be individuals working at the state or local government level or for private companies.
