The federal False Claims Act (FCA) aims to combat fraud against the U.S. government by allowing private citizens to file lawsuits on the government’s behalf and share in any recovery. In doing so, these whistleblowers will receive legal protection against retaliation.
The New York False Claims Act (NY FCA) offers even more robust protections to whistleblowers, particularly in tax fraud and government fraud cases. If you are planning to report illegal activities, knowing these safeguards can help you do so more confidently.
Federal vs. New York False Claims Act
The goal of both laws is to allow the government to recover damages from anyone who knowingly submit false claims to federal programs or agencies. They include qui tam provisions that let private citizens or whistleblowers to file lawsuits on behalf of the government, covering various sectors like health care and government procurement.
However, you can consider the NY FCA to be more comprehensive in terms of whistleblower protection and coverage of cases. Here are some of the main differences:
- Scope of protection: The federal FCA primarily focuses on employees, while the NY FCA covers current and former employees, as well as contractors and agents.
- Protected activities: The NY FCA protects a wider range of activities, including filing a qui tam action to testifying in a false claims action.
- Burden of proof: The NY FCA uses a “preponderance of the evidence” standard, which means you must show that it is more likely than not that retaliation happened because of your reporting. This is easier to prove. Meanwhile, the federal FCA uses “but-for” causation in some courts, which requires the whistleblower to prove the retaliation would not have happened if they did not make a report.
- Tax fraud cases: Under the NY FCA, whistleblower protections extend to tax fraud cases. This is not covered by the federal FCA and many other states.
Both the federal and NY FCA offer strong whistleblower protections, but the latter provides more robust ones due to its more expansive language and interpretation by New York courts.
Legal guidance can help you take the right steps
While the NY FCA can make it easier to blow the whistle more confidently, the protections it offers can vary based on specific circumstances. Talking to an experienced attorney can help you understand your rights and determine the best course of action for your situation.
