Federal agencies continue to take whistleblowing very seriously, and so should employers. The SEC recently settled an action under the Dodd-Frank Act involving a whistleblower who reported concerns that publicly-filed financial statements contained misstatements. The settlement is significant not only because it required the employer to pay a $500,000 penalty, but also because it involved the SEC's first enforcement action against an employer under Dodd-Frank based solely on allegations of whistleblower retaliation. OSHA also just announced a settlement requiring an employer to pay $135,000 in damages to a plant manager who allegedly was terminated in violation of the OSH Act for reporting air quality and other safety and health hazards to upper management. These claims and costly settlements may have been avoided with proper training, policies, and reporting procedures.

A whistleblower is an individual who reports a violation of a law, regulation, company standard or policy, or other ethical obligation. Many federal and state laws protect whistleblower employees. These laws differ regarding:

Employers must be aware of all applicable whistleblower provisions. This is no easy task because whistleblowing protections are not centrally located in one statute (see Practice Notes, Whistleblower Claims Under the Occupational Safety and Health Act: Other Whistleblower Statutes Enforced by OSHA and Retaliation: Statutes Prohibiting Retaliation).

For resources to help public and private employers understand what whistleblower laws apply to them and the protections these laws provide to employees, see Practice Notes:

Employers should have policies and procedures that address whistleblower reporting and prohibit whistleblower retaliation. For resources to help employers implement procedures for employees to report concerns, communicate reporting procedures to employees, and train managers on responding to whistleblower reports, see: