How Are Whistleblowers Protected?

In some instances, whistleblowers are protected through state and federal programs that aim to preserve the whistleblower’s anonymity (at least for a period of time) and protect them from retaliation by employers accused of wrongdoing. Under the False Claims Act, the primary legal tool available for reporting fraud against the government, a whistleblower’s complaint is filed under seal in federal or state court and kept under seal for an extended period of time while the government investigates. The SEC, CFTC, and IRS whistleblower programs allows whistleblowers to file their claims confidentially – even anonymously with the assistance of counsel. And the False Claims Act, and SEC and CFTC programs allow for persons – or the government – to bring claims against an employer who retaliates against a whistleblower.

Some states also have laws which protect whistleblowers who advance the public interest through their reporting of fraud. An experienced whistleblower counsel is critical to understanding how these protections may or may not apply in a particular case. And before filing a claim as a whistleblower with any part of the government, these protections and their limitations need to be fully explained by a qualified attorney to the potential whistleblower.

DO CORPORATE-SPONSORED WHISTLEBLOWER PROGRAMS PROTECT WHISTLEBLOWERS?

Many companies have internal channels through which whistleblowers can report wrongdoing, creating what appear to be safe outlets for employees to point out fraud. Unfortunately, it isn’t that simple. Whistleblowers should beware of internal “whistleblower reporting” programs, as they often fail to provide any sort of genuine assurances of anonymity and often result in retaliation. The also do not generally provide financial rewards for whistleblowers or protection from retaliation. These internal programs also rarely lead to the kind of change and accountability that inspire whistleblowers to step forward with information about fraud. All of these benefits are reasonable expectations for people who put their jobs on the line to challenge fraud.

Before considering any of these options, it is best to contact an experienced whistleblower lawyer at a firm like Hagens Berman. Whistleblowers are often eligible for lucrative financial rewards in the event of a successful enforcement action, and Hagens Berman has an extensive track record of prevailing in whistleblower cases, as well as protecting its clients from retaliation by employers.

Learn more about rewards for whistleblowers »

TYPES OF EMPLOYER RETALIATION TAKEN AGAINST WHISTLEBLOWERS

Firing a whistleblower who reports corporate wrongdoing is the most obvious form of employer retaliation. But there are several ways in which an employer might seek to unlawfully exact revenge on a whistleblower. These more covert and equally damaging forms of whistleblower retaliation can include:

Firing an employee under a pretext of corporate downsizing or false accusations of poor performance
Implementation of a pre-textual performance plan to start managing an employee out
Demotion or reassignment to an undesirable position
Laying an employee off with little or no explanation
Harassment and unwarranted mistreatment
Unprovoked suspension
Unfair disciplinary actions
Creating a hostile work environment
Intimidation and threats
Unjustifiably blocking an employee from a promotion
Cuts in pay or hours
Dishonestly skewing performance reviews to reflect negatively on a whistleblower
Blacklisting (i.e., making it difficult for the whistleblower to find a new job)

It is a reality that employers too often subject whistleblowers to discriminatory and retaliatory action. This is one reason it is so critical to talk to an experienced whistleblower firm like Hagens Berman before you decide whether to blow the whistle. Hagens Berman’s team of whistleblower attorneys is adept at successfully utilizing government programs that guard whistleblowers against retaliation and protecting their best interest. Those whistleblower programs and their unique legal protections are discussed below. And experienced counsel can best help evaluate the strength of any potential whistleblower allegations.

PROTECTION FOR SEC WHISTLEBLOWERS

There are three primary forms of protection for whistleblowers who expose securities fraud under the Securities and Exchange Commission’s Whistleblower Program: anonymity, confidentiality, and protection from retaliation.

Created by the Dodd-Frank Act, a landmark federal law which strengthened protections against fraud and recklessness in the financial industry after the Great Recession, whistleblowers in the SEC’s program are offered anonymity in reporting – provided they follow proper whistleblower protocols and come forward with an attorney. Chief among these is to choose a law firm like Hagens Berman that possesses the track record and resources to take on the world’s largest corporations and win. By enlisting the services of Hagens Berman’s whistleblower team, the whistleblower can ensure that their identity and other personally revealing details are kept confidential throughout the course of litigation and beyond. Hagens Berman has represented several successful whistleblowers under the SEC program and has an unrivaled reputation for excellence in this area. With few exceptions, the SEC will not ever disclose the identity of the whistleblower who reported a case—even after that whistleblower has been paid an award.

The SEC Whistleblower Program also contains a provision which allows a whistleblower to file suit against an employer for the aforementioned retaliatory acts, including termination, demotion and various other types of mistreatment.

PROTECTION FOR CFTC WHISTLEBLOWERS

Like the SEC Whistleblower Program, the Commodities and Futures Trading Commission’s Whistleblower Program was created by the Dodd-Frank Act and includes protections similar to the SEC’s program.

As with the SEC’s program, the CFTC Whistleblower Program ensures that whistleblowers who retain an experienced whistleblower attorney are afforded anonymity and confidentiality in reporting to the agency. The CFTC Whistleblower Program also allows for a whistleblower to take legal action if an employer engages in an act of retaliation.

Learn more about protections for CFTC whistleblowers »

PROTECTION FOR FALSE CLAIMS ACT WHISTLEBLOWERS

Whistleblower cases concerning the False Claims Act are filed under seal, protecting the whistleblower’s identity for at least 60 days – and often a lot longer – while the government investigates the whistleblower claims. Except in rare circumstances, should the government decide to pursue a case once it closes its investigation, the whistleblower’s identity will eventually become known.

But this doesn’t mean that False Claims Act whistleblowers aren’t strongly protected from retaliatory acts by employers. The federal False Claims Act’s Anti-Retaliation Provision allows a whistleblower to sue an employer for double back pay and other forms of relief if the whistleblower can show that the employer discriminated against them for blowing the whistle.

Several states with their own False Claims Act or similar statutes also have protections on the books that insulate whistleblowers from employer retaliation.

Find out more about protections for False Claims Act Whistleblowers »

HAGENS BERMAN SUCCESSFULLY REPRESENTS WHISTLEBLOWERS

Hagens Berman’s team of whistleblower attorneys, led by managing partner, Steve Berman, and head of whistleblower practice, Shayne Stevenson, has successfully represented whistleblowers under the federal False Claims Act and similar state laws. The firm also has proven expertise and success in the area of financial fraud and maintains a robust practice with the SEC and CFTC, whose programs have rewarded several Hagens Berman whistleblowers with large awards.

Unlike smaller whistleblower practices, which often lack the resources to litigate whistleblower claims against some of America's biggest corporations, Hagens Berman has a record of success that includes some of the largest settlements in legal history.

HOW TO BECOME A WHISTLEBLOWER

If you have knowledge of fraud perpetrated against the government or would like to discuss becoming a whistleblower and find out more about your legal rights and protections, contact our whistleblower team at [email protected] or by filling out the secure form on this page.