Whistleblowing can pose financial and legal risks to someone considering reporting wrongdoing. Despite safeguards against retaliation, potential whistleblowers may hesitate. Their job, and even their life, could be on the line. Incentives can provide a safety net that empowers them to push on.
Government whistleblower programs have reward systems that provide compensation based on the case and the specific program. In a qui tam case, a private citizen reports fraud committed against the government. The False Claims Act (FCA) outlines the award for qui tam and its requirements.
Calculating qui tam award
The FCA offers whistleblowers a percentage of the recovered funds as a reward. Whistleblowers must provide original information to qualify. The lawsuit should also lead to the government successfully recovering funds.
Under the New York FCA, a qui tam case whistleblower typically receives:
- 15% to 25% of the amount recovered if the government joins the case
- 25% to 30% of the amount recovered if the government doesn’t intervene
Violators of the New York FCA may be liable for a civil penalty between $6,000 and $12,000. The government also collects three times the fraud loss unless the case is settled before trial.
Factors that determine the actual amount awarded to the whistleblower include:
- Extent of participation and quality of assistance
- How detailed the information provided is
- Whether the fraud posed a significant safety issue
Whistleblowers who face termination, harassment or discrimination could also potentially receive special damages. These can include:
- Back pay
- Reinstatement
- Attorney fees
- Litigation costs
Attempts to silence and intimidate whistleblowers are common. Whistleblowers can file a complaint within 10 years of the violations. This period can allow the whistleblower to mitigate risks and seek protection. Consulting an experienced whistleblower protection attorney is advisable to defend against abuse and receive fair compensation.
