An employee whistleblower is someone who exposes illegal conduct by his or her employer. We have these employees to thank for exposing illegal acts by company managers, executives, and other business owners or operators. These “insiders” provide a great service -- and protect consumers -- by forcing employers to abide by the rules and pay for their illegal actions.
In the U.S, employees who expose illegal conduct by their employers are protected from retaliation by a number of laws. Additionally, some case that are prosecuted by the government, called “Qui Tam” cases, offer the whistleblower a share of the fines imposed on the violating employer.
Some of the most common whistleblower protection laws depend on the type of violation.
Corporate Fraud
After the fraud that took place at Enron and Worldcom, the Sarbanes-Oxley Act was passed. Included in this act are protections for whistleblowers who report corporate fraud or wrongdoing, either within their company or to a government agency.
Workplace Safety Claims
Employees who report hazards of workplace safety are protected by OSHA, the Occupational Safety and Health Act. Common types of work place health safety hazards include (but are not limited to):
- chemical hazards
- unsafe scaffolding or other unenclosed, unharnessed work at great height
- electrical hazards
- overexertion
- lack of protective gear or safety equipment
- unsafe machinery, and
- improper training for high-risk work.
Environmental Misconduct
Some companies violate environmental regulations in order to save on costs. But the savings to the employer is paid for many times over by neighboring communities that have to live with the damage. For this reason, there are many protections offered whistleblowers who expose this kind of wrongdoing. Some examples include the Federal Clean Air Act, the Safe Drinking Water Act, the Toxic Substance Control Act, the Solid Waste Disposal Act, the Water Pollution Control Act, and the Solid Waste Disposal Act.
Laws Specific to New Jersey
In New Jersey, the Conscientious Employee Protection Act offers whistleblowers even more protection than federal laws. For whistleblowers in New Jersey, an employee is protected even for reporting misconduct that is not specifically illegal.
Qui Tam Cases
If a company commits fraud against the federal government, employees who report it are offered monetary compensation for their part in exposing and helping prosecute the violations. The percentages vary, but the relator (the whistleblower in a qui tam case) may receive between 10%-30% of the penalties imposed on the violating company.
One of the most well known qui tam cases involved Pfizer, a pharmaceutical company. Pfizer was sued for their marketing practices of the drug Bextra, and forced to pay $2.3 billion; the whistleblower, John Kopchinski, received $51.5 million of the proceeds.
If you become aware of illegal or unsafe practices in your workplace, there are legal protections available that will protect you if you try to put a stop to such activity. Before you take any action, however, it's a good idea to consult with an employment lawyer who specializes in these cases, or with the governmental agency specifically designated to help you. When you do come forward, you'll know exactly what you have to do to protect your legal rights while blowing the whistle.
From the author: New York Whistleblower Attorneys
