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more_legal_areas whistleblowerMany private and public companies, nonprofit organizations, and government agencies have a whistleblower policy in place to protect employees or other citizens who come forward with reports or evidence of wrongdoing, unsafe conditions on the job, or environmental hazards. The whistleblower policy informs all of the parties involved that retaliation against or harassment of a whistleblower will not be tolerated, and may have negative consequences.
Punishment for Retaliation Against a Whistleblower
An example of federal law that illustrates whistleblower policy is the Sarbanes-Oxley Act, implemented in 2002. It provides protection for corporate fraud whistleblowers to win reinstatement, back pay and benefits, compensatory damages, and more. The Act also provides penalties for individuals who interfere with a whistleblower's employment, with possible imprisonment and a fine up to $250,000.
The Sarbanes-Oxley Act was a response to the accounting scandals uncovered by whistleblowers at companies such as Enron, WorldCom, and Tyco. It added many protections for whistleblowers and accountability for corporate wrongdoers.
Sharing in the Recovery of Money Obtained Fraudulently
Another aspect of whistleblower policy is the ability of a private citizen to share in the money recovered from reporting a fraud against the U.S. government, as allowed by the federal False Claims Act. This law was enacted during the Civil War after suppliers were found to be reaping huge and fraudulent profits in military procurements. In a False Claims Act suit, the whistleblower, also known as the "relator," is allowed 15 to 25 percent of the money recovered from the fraud.
Spotty Enforcement of Whistleblower Policy
Even when an organization or company has a whistleblower policy in place, the policy may not be followed. A culture of secrecy about the organization's work, conduct and mistakes may be deeply ingrained, and a whistleblower may be punished or retaliated against despite a protective whistleblower policy.
A competent, experienced and knowledgeable attorney who has dealt with whistleblower policy before best serves an individual who is struggling with the question of whether to blow the whistle and risk retaliation.
Contact a Law Firm with Whistleblower Experience
The field of whistleblower law is rather complex given the large number of state and federal laws that may pertain as well as a company or agency's own whistleblower policy. Speak with a whistleblower law firm today to discuss your concerns, in a private and confidential consultation.