Whistleblower Law

Under certain circumstances, employees are protected from retaliation by their employer for revealing certain information about their employers. Some laws even include incentives, such as monetary awards, for an employee to do so. If you are an employee who feels your employer has violated a law or government mandate, and you want to know what legal protections are available if you report the situation, contact us. If you own or manage a business that is dealing with a potential whistleblower situation, contact us to make sure you’re fully aware of the applicable laws and any actions you take are legally justifiable.

Whistleblower Laws and Litigation

There are many laws that make retaliation against an employee illegal in a variety of situations. Under federal law, there are civil rights and antidiscrimination laws that make it illegal for an employee to be discriminated against for seeking protection from violation of these laws, testifying at such proceedings or aiding the investigation of such charges. There are similar federal protections for employees who report anti-trust, environmental, labor law, toxic waste, clean water and equal pay law violations. The Whistleblower Protection Act protects federal employees after disclosing illegal or improper government activities. State laws protect whistleblowers as well, including civil rights laws and the Florida Whistle-Blower Act. Generally, the protections occur after a person reports a violation of law internally or to a government agency, files a lawsuit concerning the matter, testifies about the matter in a legal proceeding or opposes something that the person reasonably thinks is illegal by refusing to perform some function or task. If a lawsuit is filed by the employee because of illegal retaliation , the plaintiff would need to show protected activity, the employer’s knowledge of those acts and the employer taking actions against the employee (such as firing or demoting) in response, which caused harm. Damages recoverable through a legal action may include back pay, front pay, reinstatement and other damages.

Federal False Claim Act and qui tam fraud cases

The False Claim Act (FCA) may be one of the more famous whistleblower laws and qui tam cases based on the law can be found in the national news. The FCA now allows a private individual who knows about past or present fraud against the federal government to sue on behalf of the government in order to recover stiff civil penalties and triple damages. The person filing the suit is formally known as the “relator.” If the suit succeeds, it not only stops the dishonest actions, but also deters similar conduct by others and may result in the relator’s receipt of a substantial share of the government’s ultimate recovery – as much as 30% of the total.

Whistleblower FAQ

Who is a whistleblower? Anyone who exposes fraud or theft against the federal or state government, reports to the government illegal activities or takes a stand against such activities, based upon some inside knowledge. What is considered a fraud against the government? Most forms of intentionally or knowingly cheating are considered fraud. It’s a fraud when someone lies in order to get money for which they are not entitled. A contractor doing work for the government who bills for services not actually provided, a doctor or hospital submitting a false Medicare invoice claiming to have done treatment not actually performed or selling an item to the government knowing it’s defective are some examples of fraud. Can I recover a whistleblower reward for reporting tax fraud? Yes. Part of the federal Tax Relief and Health Act of 2006, known as the tax fraud whistleblower law, is modeled after the FCA. It provides for the same reward as the FCA if the tax fraud meets certain criteria. The main provisions of the law include:

• Whistleblowers may be rewarded with up to 30% of the amount collected by the IRS as a result of information about tax fraud received.
• The alleged tax fraud or underpayments must exceed $2 million (including tax, penalties and interest).
• For an individual, the annual income of the person committing the alleged tax fraud must exceed $200,000.
• The IRS will keep the whistleblower’s identity confidential.

What are the penalties for a guilty company under the FCA? The FCA requires that a party found to have defrauded the government pay a penalty equal to three times the amount it lost in paying the false claim. In addition, the guilty person or enterprise faces a $5,000 to $10,000 penalty for each false claim. The government may settle a case by agreeing to forgive the civil penalties and accepting two to three times the amount of damages. In this situation the defendant must also pay the hourly fees and costs of the whistleblower’s attorney. What rights does a whistleblower have? The FCA protects any whistleblower from being discharged, demoted, harassed, or otherwise discriminated against because of lawful acts taken by an employee to pursue a qui tam lawsuit. A whistleblower is to be paid a percentage of any money recovered by the federal government as a result of the whistleblower’s actions. This reward can be substantial – as high as 30% of the government’s total recovery. Whistleblowers may also be entitled to award money if they can prove retaliation has taken place (fired, demoted, etc.) due to their activity or that lost wages or other expenses were incurred as a result of this illegal retaliation. What are the risks for a whistleblower? With the FCA, if the case is not handled properly, a whistleblower may be denied compensation, even if the government is repaid its losses with penalties and interest. Improper disclosures of the investigation or other whistleblowers coming forward first are just two of many issues that can prevent a recovery. The company being investigated may also try to destroy the credibility of the whistleblower in an effort to avoid liability. How long do I have to file a whistleblower lawsuit? Under the FCA, a qui tam lawsuit must be filed within six years from the date of the fraud or three years after the government first learns about the violation, but in no event can a lawsuit be filed after ten years from the date of violation have passed. Can I file a whistleblower case for fraud against a state government? Yes, under the Florida Whistle-Blower Act, a case can be filed for fraud against a state government. If you believe your employer has broken the law, defrauded the state or federal government or cheated the federal government out of taxes it owes, contact our whistleblower law attorneys Boca Raton so we can discuss the situation. We can go over the details, see what laws may apply and determine what rights and protections may cover your situation. Make sure you’re fully informed of the applicable laws so you can act accordingly, do the right thing and protect your interests.