Government employees have the unique ability to spot fraud that’s occurring against the federal government. Most people would think that the government would be happy if they reported fraud that’s happening, but that’s not always what happens.
Some government employees opt to pursue a qui tam action, which is possible under the False Claims Act, and then face retaliation as a result. This leads to some government employees being wary about speaking up when they see something amiss.
What is a qui tam action?
A qui tam lawsuit allows a private citizen—often a whistleblower—to sue on behalf of the U.S. government if they have knowledge that someone is defrauding a federal program or contract. If the lawsuit leads to a successful recovery, the whistleblower may be entitled to a percentage of the recovered funds.
Government employees can file qui tam suits, but there are some limitations. Courts will often consider whether the employee discovered the fraud through their job duties or independent observation. The more direct and original the knowledge, the more likely the claim will be allowed to proceed.
How are these employees protected?
The False Claims Act doesn’t just allow whistleblowers to report fraud—it also protects them if they face retaliation. Retaliation can take many forms: demotion, suspension, job reassignment, harassment or even termination.
If an employee is punished for trying to stop fraud or for participating in a qui tam case, they may be entitled to compensation. This can include reinstatement, double back pay and coverage for attorney fees and other damages.
Reporting fraud in a government workplace can feel like walking a tightrope. There is a duty to protect the government, but there’s also the risk of retaliation. Even with the protections offered, there’s still a chance that retaliation will occur. That’s why it’s crucial for anyone considering a qui tam action to fully understand their rights, the procedures involved, and how to document any mistreatment.