External Whistleblowing vs. Internal Whistleblowing: Explained

External vs. Internal Whistleblowers

What It Means for Your Case
If You Report Internally or Externally

Have you considered blowing the whistle about conditions or practices at your place of employment?

If so, it is important that you know the laws involved and what may happen when you decide to come forward.

Whether you are an external or internal whistleblower may play a major role in what happens next. You should understand what these terms mean so that you can decide how to handle your claims.

In this short guide, you’ll learn what whistleblowing is, and how to tell the difference between internal and external whistleblowing.

You’ll learn how to decide between these two options, and how a lawyer can help you if you face retaliation for your choice.

 

 

What happens when you become a whistleblower?
State and Federal law provide for a number of protections for whistleblowers who come forward to report fraud, misconduct, and abuse. Your complaint will be investigated, internally or by an external organization like the Dept. of Justice. Your whistleblower attorney will help you navigate this complex process.

What is Considered Whistleblowing?

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Whistleblowing refers to the act of reporting waste, fraud, corruption, or other misconduct and abuses.

You can report wrongdoings that occur at either public or private organizations, but not all abuses are against the law.

When the violations you’re reporting are against the law (for example; when they include fraud against government programs) the False Claims Act (FCA) may apply.

The FCA does not apply to all types of whistleblowing. Knowing the difference between external and internal whistleblowing and the protections afforded to whistleblowers who make a protected disclosure is vital to achieving a meaningful and successful resolution.


What role does the FCA play in whistleblowing cases?

The FCA imposes significant penalties against persons or companies who defraud government programs. Health care and military contracting programs are particularly susceptible to fraud, so this law encourages whistleblowers to report this fraud by offering them a reward.

The law includes a qui tam provision that allows whistleblowers to file actions on behalf of the government. If the action is successful, whistleblowers may be rewarded with a percentage of all funds that are recovered. In the past, whistleblowers have earned millions of dollars after being a part of a successful FCA case.

 

What is the Difference Between External and Internal Whistleblowing

Before you blow the whistle about any practice in your workplace, you should decide whether you are going to be an external whistleblower or an internal one. To make this decision more effectively, you should understand them both.

The following will help you understand the difference between these types of whistleblowers, and help you understand how to make a protected disclosure in each case. The path you and your attorney choose will ensure you protect yourself and help end the misconduct more effectively.

Internal vs. External Whistleblowing

External Whistleblowing

You are acting as an external whistleblower when you take the misconduct you have witnessed to an entity outside of your organization. Some examples of an outside entity include:

  • A government agency that deals with fraud
  • A public fraud hotline
  • A media network
  • Your personal attorney

Out of these options, it is wise to speak to your whistleblower attorney first, whose duty is to represent your interests. Your attorney may want to recommend the next step you take, including which outside entity should receive the report.

Typically, only external whistleblowing ends in court actions. If you choose to report misconduct to a hotline, government agency, or prosecutor, you may lose all control of how the report moves forward.

You may be asked to testify about the accusations that you have made. Details that you have reported may be published without warning.

Internal Whistleblowing

You are acting as an internal whistleblower when you report wrongdoing to entities within your organization. Some examples of internal authorities may include:

  • Your immediate supervisor
  • Your organization’s human resource department
  • Your organization’s legal department

Most private and public organizations have protocols for dealing with accusations internally. Your report and the misconduct described in it may not ever be reported to outside authorities.

Should I be an External or Internal Whistleblower?

It can be challenging to decide if you should take your reports outside your organization. You should consider speaking to a lawyer before you make a decision. Whistleblowers are commonly subject to retaliation or reprisals for blowing the whistle and should be considered before coming forward with what you know. Asking yourself the following questions may help you consider all the factors:


  • Is the misconduct a violation of the law?
  • Is the misconduct causing active harm?
  • Do you trust your organization to respond appropriately to accusations?

 

Is the misconduct against the law?

Some misconduct may be a violation of your organization’s ethical or behavioral standards, but it may not rise to the level of illegal behavior. In cases like these, you should make internal reports to resolve the misconduct.

You should consult a lawyer if you are unsure whether the behavior you’ve witnessed qualifies as a crime.

 

Is the misconduct causing active harm?

If you are aware of fraud against government programs, or practices that endanger others, you should consider making a report as quickly as possible. Making an external report may allow for the practices to be addressed more quickly.

 

Do you trust your organization to respond appropriately to accusations?

You should think carefully about how your organization will handle your complaint before deciding to blow the whistle internally. Not all organizations cultivate a culture where reports are taken seriously.

Filing an internal report can put you at risk of retaliation. It is illegal to retaliate against whistleblowers, but you may need a lawyer’s help to assert your rights.

 

How a Whistleblower Attorney Can Help

Not only can a whistleblower lawyer help you at every stage of internal or external whistleblowing, representation is required in qui tam cases where the relator brings suit on behalf of the government. Initially, however, your lawyer can help assess the legal merits of your case, review the protections afforded whistleblowers by law and help you protect your interests. Your lawyer will also be able to help you prepare for the investigation by telling you what information can be collected legally to avoid running afoul of the law on the whistleblowers part.

If you are sitting on information and uncertain as to your next steps, take advantage of the offer for a confidential whistleblower attorney review of your potential case. Find out if you are eligible to file an FCA claim on behalf of the government, and if you decide to proceed, your lawyer will help you manage the case from start to finish.

 

 

 

 

 

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What best describes the nature of your case?
Do you have insider knowledge of fraud?
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Please describe briefly the nature of your case...
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