Is an employee protected if they're mistaken about the actions being unlawful?

A: Yes, especially for violations that happen under the No FEAR Act and Sarbanes-Oxley Act. If the employee believes that an action is a violation, the reporting is considered protected even if it is in error.

How do I qualify to be a whistleblower?

A: As long as you have evidence of fraud, you can be a whistleblower. You do not have to be a direct witness to the fraud as long as you have documentation of it.

How can I tell if I have a good whistleblower case?

A: You should speak to an whistleblower attorney. There are too many variables in these cases to determine the validity without a consultation.

What is the first-to-file rule?

A: Under the False Claims Act, 31 U.S.C. 3730(b)(5), only the first whistleblower to file a qui tam complaint based on the same underlying facts can share in the recovery, and later filers are barred. If another insider has the same information and files first, your case ends without a reward. The SEC, CFTC, and IRS programs apply their own versions of the rule through original-information and related-action requirements, so the time to act is when you have credible evidence and counsel.

What is the public disclosure bar?

A: The False Claims Act bars qui tam claims based on substantially the same facts already disclosed publicly in federal hearings, government reports, the news media, or similar channels, under 31 U.S.C. 3730(e)(4). The exception is an original source, a relator with independent knowledge that materially adds to what was disclosed. The SEC, CFTC, IRS, and anti-money laundering programs have similar original-information requirements, so talk to a qui tam attorney before discussing the facts with anyone else.

What happens if the government declines to intervene in a qui tam case?

A: A qui tam complaint is filed under seal, and the Department of Justice has 60 days, often extended, to investigate and decide whether to take over the case. If it intervenes, federal attorneys lead the case and the relator's share is 15% to 25% of the recovery. If it declines, the relator may continue alone, the share rises to 25% to 30%, and the case becomes harder to win without the government's resources.

What evidence do I need to file a qui tam case?

A: Specific knowledge of specific violations, with enough detail to meet the heightened pleading standard of Federal Rule of Civil Procedure 9(b): who, what, when, where, and how. Useful evidence includes billing records, claim forms, contracts, time sheets, internal emails, names, dates, dollar amounts, and instructions from supervisors directing the conduct. Removing or copying employer documents can create separate legal exposure, so get counsel's guidance on what to preserve before you collect anything.

Can I be a whistleblower if I took part in the fraud?

A: Often yes, with a reduced reward and possible exposure. Courts may reduce the share of a relator who planned and initiated the violation, and a relator convicted of criminal conduct arising from the fraud is barred from any award under 31 U.S.C. 3730(d)(3). The SEC, CFTC, and IRS programs also allow reduced awards to culpable insiders but bar anyone convicted of a related crime. Retain counsel before disclosing anything.

Can I blow the whistle anonymously?

A: In some programs. SEC and CFTC whistleblowers can file anonymously through an attorney and still collect an award. A False Claims Act complaint stays under seal while the government investigates, but the relator's name usually becomes public when the seal is lifted. IRS whistleblower identities are protected, though disclosure can be required if a case reaches Tax Court, and federal employees can make confidential disclosures to the Office of Special Counsel or an Inspector General.

How do I protect myself from whistleblower retaliation?

A: Retain counsel before you report internally or externally, document dates, conversations, and performance reviews as they happen, and avoid removing documents in violation of company policy. Common retaliation includes demotion, schedule changes, sudden negative reviews, pretextual discipline, and termination. Federal remedies can include reinstatement, double back pay under the False Claims Act and Dodd-Frank, special damages, and attorney fees, and the filing windows are short: 180 days under Sarbanes-Oxley and as little as 30 days under some OSHA-enforced statutes.

Should I take what I know to the media?

A: Not before filing. Going public can trigger the False Claims Act public disclosure bar, cost you original-source status and the award, and invite retaliation before any investigation begins. The seal also bars a relator from disclosing a sealed qui tam complaint. Information can be made public later if needed, but it cannot be made private again.

Which agency investigates a whistleblower report?

A: It depends on the fraud. Fraud on federal programs goes to the Department of Justice Civil Division and the U.S. Attorney's Office, often with an inspector general such as HHS-OIG for healthcare. Securities fraud goes to the SEC Office of the Whistleblower, commodities fraud to the CFTC, tax fraud to the IRS Whistleblower Office, and disclosures by federal employees to the Office of Special Counsel or the agency's Inspector General. Filing with the wrong agency can cost time and the award.

Whistleblower Laws: Protections, Awards, and Deadlines

Whistleblowing Rights and Laws

Are you considering blowing the whistle on practices that you have witnessed at your workplace? Whistleblowers play an essential role in helping the State and Federal government fight knowingly false pay claims and other wrongdoing.

The whistleblower laws afford those sitting on information protections and create a legal path for remedies. These laws additionally provide for penalties and damages intended to deter knowingly fraudulent claims, misconduct, and abuse of government programs.

The following guide will review the important Federal and state statutes which provide those who blow-the-whistle various rights and protections.

False Claims Act

Sarbanes Oxley

Qui Tam Provision

internal vs external whistleblowing icon

External vs. Internal Whistleblowing

Florida False Claims Act

Texas False Claims Act

Quick Navigation
Table of Contents: [hide]

[show]

What is whistleblowing?
What is NOT considered to be whistleblowing?
What are the whistleblower laws?
False Claims Act of 1863
Lloyd-La Follette Act of 1912
Whistleblower Protection Act of 1989
No FEAR Act of 2002
Sarbanes-Oxley Act of 2002
Do states have whistleblower laws?
FAQs about Whistleblowing
References

Article at a Glance

The Vital Role These Laws Play In Fighting Fraud, Misconduct & Abuse
What Rights do Whistleblowers Have
What Is Considered Whistleblowing
Your Next Steps If You Are Sitting On Information and Deciding What to Do

Your lawyer will help you throughout the whistleblowing process to determine what laws are applicable to your situation and ensure you navigate the legal process safely.

Below, you'll learn what whistleblowing is, what laws (both state and federal) govern it, and get answers to some of the most common whistleblowing questions.

What is Whistleblowing?

Whistleblowing is the act of exposing information about a private or public organization to reveal fraud, abuse, or other illegal behavior.

Throughout U.S. history, whistleblowers have helped to expose serious wrongdoing by company executives and elected officials. In recent history, they have brought illegal banking practices to light, helped the government recover funds from fraudulent charges, and protected consumer safety.

Whistleblowers are needed because many illegal acts are not possible to investigate without a participant revealing them. For that reason, certain whistleblowing acts are protected under the law. If you have been fired for whistleblowing, you may be eligible for compensation.

When whistleblowers are reporting fraud against government programs, they may be permitted to serve as a "relator." A relator is someone who files suit on behalf of the government and is allowed to collect a portion of funds that are recovered.

Whistleblowing in Healthcare

Medicare Fraud

Pharmaceutical Fraud

Telehealth Fraud

Hospital Fraud

EMS Ambulance Fraud

Hospice Fraud

What is NOT considered to be whistleblowing?

Exposing practices by your agency or company may not be considered whistleblowing unless the practices revealed are illegal or against the public interest.

For example, in certain cases, when you have signed a non-disclosure agreement, exposing information that doesn't violate the law can place you in serious legal jeopardy.

The following situations are examples of reports that may not be considered whistleblowing:

Exposing bullying behavior by superiors (unless it rises to the level of legal discrimination)
Exposing practices that are inefficient or impractical, but not illegal
Sharing information with outside parties who are not involved with the law (such as friends, and competing companies)

Consider speaking to a lawyer before blowing the whistle to ensure that the information you have covers illegal behavior.

Whistleblowing Report by Sector

defense contract fraud whistleblowers icon

Procurement & Defense Fraud

Grant & Research Fraud

Government Program Fraud

A Remedy for Government Program Fraud, Misconduct, and Abuse
False documentation, illegal details, false billing and billing scams are all tactics used to cheat government programs. Whistleblower laws like the False Claims Act help authorities recover taxpayer money otherwise lost to fraudulent providers.

List: What are the whistleblower laws?

Many different whistleblower laws have been passed to protect whistleblowing in different industries and situations. The following are some of the most important laws that may apply in your whistleblowing case:

False Claims Act of 1863
Lloyd-La Follette Act of 1912
Whistleblower Protection Act of 1989
No FEAR Act of 2002
Sarbanes-Oxley Act of 2002

False Claims Act of 1863

The False Claims Act was created to provide private individuals with incentives to report government fraud. It includes a qui tam provision that allows whistleblowers to claim some of the money recovered.

Lloyd-La Follette Act of 1912

The Lloyd-La Follette Act of 1912 guarantees federal employees' right to share information with members of congress without the need to inform or get the consent of their bosses.

Whistleblower Protection Act of 1989

The Whistleblower Protection Act protects whistleblowers from retaliation by providing them with a series of new protections. It also established additional penalties for government employees or appointees who retaliate or threaten to retaliate against whistleblowers.

No FEAR Act of 2002

The No Fear Act is a whistleblower protection act that requires agencies to pay for any settlements, awards, or judgments that are made against them in whistleblower cases. These settlements must come out of their own budget rather than other government funds.

Sarbanes-Oxley Act of 2002

The Sarbanes-Oxley Act protects whistleblowers who report various kinds of financial fraud, including securities fraud, bank fraud, SEC violations, or wire fraud. Employees are protected while whistleblowing even if they only have a reasonable suspicion of actionable conduct rather than proof.

Do states have whistleblower laws?

Yes, several states have whistleblower laws on the books that may provide additional protections or cover actions that take place in state-level agencies and companies.

For example, the state of Florida has passed The Florida Whistleblower Act. This act protects both public and private employees from being terminated or facing other types of retaliation for reporting illegal or unethical actions.

It gives whistleblowers the right to appeal to the Florida Commission on Human Relations if they believe they have experienced retaliation. The law also establishes remedies up to compensatory damages.

Whistleblower Award Percentages Under the FCA, SEC, CFTC, and IRS Programs

Several federal programs pay the person who reports fraud a share of what the government collects. The percentage depends on the program and, under the False Claims Act, on whether the Justice Department takes over the case.

False Claims Act. 15% to 25% of the recovery when the government intervenes, and 25% to 30% when the whistleblower, called the relator, carries the case forward after the government declines.
SEC Whistleblower Program. 10% to 30% of monetary sanctions over $1 million in a securities enforcement action, under Section 922 of the Dodd-Frank Act.
CFTC Whistleblower Program. 10% to 30% of sanctions over $1 million for commodities and derivatives fraud.
IRS Whistleblower Program. 15% to 30% of the proceeds collected when more than $2 million is in dispute and, for an individual taxpayer, gross income exceeds $200,000. Smaller tax cases fall under a discretionary program.
Anti-money laundering program. Up to 30% of sanctions over $1 million for money laundering, Bank Secrecy Act, and sanctions violations, administered by the Treasury Department.

Most of these programs pay only for original information, meaning facts the government did not already have from a public source, and the False Claims Act pays only the first relator to file on a given set of facts. A tip that arrives second, or that repeats a news story, can earn nothing no matter how accurate it is.

Filing Deadlines for False Claims Act and Retaliation Claims

A False Claims Act case must be filed within six years of the violation, or within three years of when the responsible government official knew or should have known about it, and never more than ten years after the violation, under 31 U.S.C. § 3731(b). The Supreme Court held in Cochise Consultancy v. United States ex rel. Hunt (2019) that the three-year extension applies even when the government declines to join the case.

Retaliation claims run on much shorter clocks. A Sarbanes-Oxley retaliation complaint has to be filed with OSHA within 180 days of the firing, demotion, or other adverse action, and some of the other whistleblower statutes OSHA enforces allow as little as 30 days. State False Claims Acts and state whistleblower laws set their own deadlines.

Whistleblowing FAQ

Q: Is an employee protected if they're mistaken about the actions being unlawful?: A: Yes, especially for violations that happen under the No FEAR Act and Sarbanes-Oxley Act. If the employee believes that an action is a violation, the reporting is considered protected even if it is in error.
Q: How do I qualify to be a whistleblower?: A: As long as you have evidence of fraud, you can be a whistleblower. You do not have to be a direct witness to the fraud as long as you have documentation of it.
Q: How can I tell if I have a good whistleblower case?: A: You should speak to an whistleblower attorney. There are too many variables in these cases to determine the validity without a consultation.
Q: What is the first-to-file rule?: A: Under the False Claims Act, 31 U.S.C. 3730(b)(5), only the first whistleblower to file a qui tam complaint based on the same underlying facts can share in the recovery, and later filers are barred. If another insider has the same information and files first, your case ends without a reward. The SEC, CFTC, and IRS programs apply their own versions of the rule through original-information and related-action requirements, so the time to act is when you have credible evidence and counsel.
Q: What is the public disclosure bar?: A: The False Claims Act bars qui tam claims based on substantially the same facts already disclosed publicly in federal hearings, government reports, the news media, or similar channels, under 31 U.S.C. 3730(e)(4). The exception is an original source, a relator with independent knowledge that materially adds to what was disclosed. The SEC, CFTC, IRS, and anti-money laundering programs have similar original-information requirements, so talk to a qui tam attorney before discussing the facts with anyone else.
Q: What happens if the government declines to intervene in a qui tam case?: A: A qui tam complaint is filed under seal, and the Department of Justice has 60 days, often extended, to investigate and decide whether to take over the case. If it intervenes, federal attorneys lead the case and the relator's share is 15% to 25% of the recovery. If it declines, the relator may continue alone, the share rises to 25% to 30%, and the case becomes harder to win without the government's resources.
Q: What evidence do I need to file a qui tam case?: A: Specific knowledge of specific violations, with enough detail to meet the heightened pleading standard of Federal Rule of Civil Procedure 9(b): who, what, when, where, and how. Useful evidence includes billing records, claim forms, contracts, time sheets, internal emails, names, dates, dollar amounts, and instructions from supervisors directing the conduct. Removing or copying employer documents can create separate legal exposure, so get counsel's guidance on what to preserve before you collect anything.
Q: Can I be a whistleblower if I took part in the fraud?: A: Often yes, with a reduced reward and possible exposure. Courts may reduce the share of a relator who planned and initiated the violation, and a relator convicted of criminal conduct arising from the fraud is barred from any award under 31 U.S.C. 3730(d)(3). The SEC, CFTC, and IRS programs also allow reduced awards to culpable insiders but bar anyone convicted of a related crime. Retain counsel before disclosing anything.
Q: Can I blow the whistle anonymously?: A: In some programs. SEC and CFTC whistleblowers can file anonymously through an attorney and still collect an award. A False Claims Act complaint stays under seal while the government investigates, but the relator's name usually becomes public when the seal is lifted. IRS whistleblower identities are protected, though disclosure can be required if a case reaches Tax Court, and federal employees can make confidential disclosures to the Office of Special Counsel or an Inspector General.
Q: How do I protect myself from whistleblower retaliation?: A: Retain counsel before you report internally or externally, document dates, conversations, and performance reviews as they happen, and avoid removing documents in violation of company policy. Common retaliation includes demotion, schedule changes, sudden negative reviews, pretextual discipline, and termination. Federal remedies can include reinstatement, double back pay under the False Claims Act and Dodd-Frank, special damages, and attorney fees, and the filing windows are short: 180 days under Sarbanes-Oxley and as little as 30 days under some OSHA-enforced statutes.
Q: Should I take what I know to the media?: A: Not before filing. Going public can trigger the False Claims Act public disclosure bar, cost you original-source status and the award, and invite retaliation before any investigation begins. The seal also bars a relator from disclosing a sealed qui tam complaint. Information can be made public later if needed, but it cannot be made private again.
Q: Which agency investigates a whistleblower report?: A: It depends on the fraud. Fraud on federal programs goes to the Department of Justice Civil Division and the U.S. Attorney's Office, often with an inspector general such as HHS-OIG for healthcare. Securities fraud goes to the SEC Office of the Whistleblower, commodities fraud to the CFTC, tax fraud to the IRS Whistleblower Office, and disclosures by federal employees to the Office of Special Counsel or the agency's Inspector General. Filing with the wrong agency can cost time and the award.