Whistleblower Retaliation: What Legal Protections Exist?

by Rrita Osmani and Alden Hey

Whistleblowers play a critical role in uncovering corporate and government fraud; however, many potential whistleblowers fear retaliation from their current or former employer. This article outlines the legal protections that are afforded to whistleblowers to prevent retaliation and encourage them to come forward.

What Constitutes Retaliation Under Whistleblower and Employment Law?

Retaliation, in the context of whistleblower and employment law, occurs when an employer fires a whistleblower or takes any adverse action after they blow the whistle on prohibited conduct.

Adverse action includes but is not limited to: 

• Firing or laying off
• Demoting
• Denying overtime or promotion
• Disciplining
• Denying benefits
• Failing to hire or rehire
• Intimidation or harassment
• Making threats
• Reassignment to a less desirable position or actions affecting prospects for promotion (such as excluding an employee from training meetings)
• Reducing or changing pay or hours
• More subtle actions, such as isolating, ostracizing, mocking, or falsely accusing the employee of poor performance
• Blacklisting (intentionally interfering with an employee’s ability to obtain future employment)
• Constructive discharge (quitting when an employer makes working conditions intolerable due to the employee’s protected activity)
• Reporting or threatening to report an employee to the police or immigration authorities

Source: whisteblowers.gov

If any of these actions are taken against an employee following their participation as a whistleblower in an investigation or litigation, that employee could be eligible for recourse under state and federal law.

Which Federal Statutes Protect Whistleblowers from Retaliation?

Because many whistleblower cases are based on federal statutes that employ whistleblowers as critical providers of information, protecting those same whistleblowers has become a critical priority for federal legislation. Some of the most important federal laws protecting whistleblowers from retaliation are outlined below.

The Whistleblower Protection Act

The Whistleblower Protection Act, as amended by the Whistleblower Protection Enhancement Act of 2012, criminalizes the act of federal officials taking or threatening a “personnel action” against an employee or applicant in retaliation for a protected disclosure i.e. engaging in whistleblowing. Personnel action includes:

• Firing or demotion
• Suspension or reassignment
• Negative performance reviews
• Changes in pay or benefits
• Denial of training or advancement opportunities

The False Claims Act

The False Claims Act (FCA) provides various financial remedies in the event of retaliation against a whistleblower or “relator” as they are referred to in the FCA. These remedies include reinstatement, up to double the back pay the relator would have received, interest on the back pay, compensation for lost benefits, and attorneys’ fees.

The Dodd-Frank Act

The Dodd-Frank Act provides similar protections and remedies as the False Claims Act. The primary difference between the two statutes is that the FCA protects whistleblowers in cases of fraudulent reimbursements being requested from the federal government, while the Dodd-Frank Act protects whistleblowers in securities and commodities cases.

The Sarbanes-Oxley Act

The Sarbanes-Oxley Act, similar to the Dodd-Frank Act, protects whistleblowers from retaliation in cases relating to fraud against shareholders or any other act prohibited by the Securities and Exchange Commission. The Sarbanes-Oxley Act differs in that it applies exclusively to publicly traded companies registered under section 12 of the Securities Exchange Act of 1934. The primary purpose of the Sarbanes Oxley Act is to ensure the accuracy of corporate disclosures and protect investors from fraudulent financial reporting.

What Steps Should Employees Take to Document Workplace Retaliation or Report Violations Safely?

While various statutes protect whistleblowers from retaliation, recourse is dependent on evidence being presented. Whistleblowers making an intentional effort to document evidence of retaliation is therefore critical.

This could mean creating a detailed log of all incidents that includes the date, time, location, people involved, and description of what happened. Preserving emails and other communications from the employer is also critical. Performance review reports can also serve as evidence that the retaliatory act was without good cause.

How do State and Federal Whistleblower Laws Differ, and When Does Dual Protection Apply?

Many states such as Pennsylvania have developed their own laws to protect whistleblowers from retaliation in addition to existing federal statutes. These laws differ from state-to-state, however generally they provide a wider range of protections to a broader group of whistleblowers. Typically, these protections apply in conjunction with federal statutes allowing for dual protection.

It is important to understand the specific protections for whistleblowers in your state. This can be achieved through researching your state whistleblower laws and/or consulting with an attorney. Information on how an experienced legal team can help you understand your rights as a whistleblower and navigate potential retaliation efforts are outlined in the next section.

How Does Miller Shah Assist Clients in Pursuing Retaliation Claims?

Miller Shah has experience with representing whistleblowers and protecting them from retaliation across a broad spectrum of whistleblower cases including but not limited to:

• Banking and mortgage fraud
• Customs and import fraud
• Cybersecurity and data privacy violations
• Defense and government contract fraud
• Education fraud
• Environmental violations
• Financial and securities fraud
• Healthcare fraud
• Pharmaceutical and FDA fraud
• Tax fraud

If you are facing retaliation for blowing the whistle, Miller Shah can help you pursue legal recourse including reinstatement, back pay, and attorney fees. If you are interested in a free consultation, fill out the form below and one of our skilled attorney will reach out to you.