Risks & Safeguards

The False Claims Act expressly prohibits (as do the laws of some states) any company from retaliating against employees who report fraud. The Act provides that any employee who is "in any manner discriminated against in the terms and conditions of employment" because he or she filed a Qui Tam action is entitled to relief. The Act prohibits discharge, demotion, suspension, threats and harassment, and provides for "all relief necessary to make the employee whole."

Despite these protections in the False Claims Act, the decision to report fraud should not be undertaken lightly. No matter what the law provides, some employers attempt to retaliate, and it isn't always easy to prove that the action was taken as a result of the employee blowing the whistle. In addition, reporting fraud can obviously lead to strained business and personal relations, and make the whistleblower suspect in the eyes of other potential employers in the same industry.

You should explore with your counsel the steps that can be taken to protect your confidentiality and employment.