Under the False Claims Act, whistleblowers have protections from retaliation. If a whistleblower comes forward and makes a claim regarding fraud committed by a company, and that company then retaliates by terminating them, harassing them, cutting their pay or subjecting them to other adverse actions, this is itself illegal.
One important thing to remember is that these whistleblower retaliation protections apply to anyone who files a suit under the FCA. There is no requirement that their claims ultimately be successful. As long as they were genuinely filing a good-faith claim, retaliation is still illegal.
Not all claims are successful
In some cases, companies do defend themselves against these accusations. Perhaps there was miscommunication, or a whistleblower thought that they saw clear evidence of fraud when the activities were actually legal. They file the claim, the company offers a defense and the case is ultimately dropped.
This would mean that the whistleblower would not receive a percentage of the money recovered, as they would under a successful qui tam case. After all, if there was no fraudulent activity, there is no recovery.
But at the same time, the company still cannot retaliate by terminating that employee just because they filed a suit. Doing so would be a violation of that person’s rights. It could also act as a form of intimidation to keep employees from coming forward with similar claims in the future. Whether whistleblower actions are successful or not, employees are protected and must be treated fairly.
A complex legal system
Whistleblower claims can become very complicated, and it is crucial that all involved understand their legal options. It can help to work with an experienced law firm at this time.