How Whistleblower Protection Covers Those Who Report Gov. Fraud

It’s understandable if a person with evidence of fraud against the government hesitates to act on it out of fear of retaliation by their employer.

Fortunately, federal whistleblower protection law gives these persons strong protection against adverse actions by their employers in response to a whistleblower claim.

Whistleblower Protection Under the False Claims Act

Generally, claims of fraud in federal government programs or contracts fall under the federal False Claims Act. This law allows a private person with evidence of fraud to initiate what’s called a qui tam lawsuit against the business allegedly responsible.

Some of the persons with the most knowledge of alleged fraud against the government are those who work on the inside of the businesses allegedly involved. Since these persons depend on the accused business for employment, they could expose themselves to whistleblower retaliation if they initiate a qui tam lawsuit.

So to keep these whistleblowers protected, the whistleblower protection law within the False Claims Act provides remedies for a claimant faced with alleged whistleblower retaliation. Section 3730(h) of that act provides for all relief necessary to make whole any employee who is discharged, demoted, harassed, or otherwise discriminated against because of their lawful participation in a qui tam lawsuit.

This relief can include compensation for any damages arising from the alleged retaliation, as well as court costs and reasonable attorneys’ fees. The claimant may also be entitled to reinstatement to their old position, plus twice the amount of back pay they missed.

Whistleblower protection lawsuits are separate from the original whistleblower actions they arise out of, and they have their own separate statute of limitations that determines the deadline for filing. Claimants can check with a whistleblower attorney to find out exactly how much time they have to file for whistleblower protection.

In addition to whistleblower protection under the False Claims Act, many state laws provide other protections against adverse employer actions like discrimination or wrongful discharge.

How Whistleblower Lawsuits Work

With some exceptions, anyone who has evidence of fraud committed in government programs or by a government contractor can bring a whistleblower lawsuit. The claim is filed under seal for a minimum of 60 days. Filing under seal gives the government a chance to investigate the allegations and decide whether it wants to intervene.

If the government intervenes, it will take over primary responsibility for prosecuting the case from the whistleblower. However, the whistleblower still stays involved in the litigation.

A whistleblower lawsuit that succeeds in recovering money for the government will also provide a reward for the claimant. In cases where the government intervenes, the claimant usually gets between 15 and 25 percent of the amount recovered, plus legal fees and other expenses related to the action.

Though each case is unique, the prospect of an award for the claimant plus whistleblower protection can make filing a whistleblower lawsuit worthwhile. One study published in the Boston University Law Journal weighed the pros and cons of being a whistleblower and concluded that in many cases the reward a claimant stands to gain outweighs disincentives like the risk of whistleblower retaliation.