Know Your Rights And Obligations Under The Whistleblower Act

Art Portfolio
Managing your Art Portfolio for long term profit

The story of the well meaning employee who reported a scandal in his company only to discover that it went all the way to the top, and resulted in the well intentioned person losing his job, but also had his good name besmirched and remained unemployed for a long time after. People who hear these stories have been known to smile a smile of silent satisfaction, and think to themselves "It could have happened to me" I could have reported the guy in purchasing, who I know is buying materials at inflated prices, and is getting a kick back from the suppliers. But why should I? What will I get out of it? The same as that poor person?

However, people who blow the whistle on illegal or unethical practices - especially in public companies or corporations - now receive full protection as a result of recent legislation that has been passed to protect the informant in the case of corporate scandals.

This new act, known as the Whistleblower Act forbids retaliation against employees of public or federal operated companies who report official wrongdoing. However, in order to receive the protection that they are entitled in the case of discrimination, the whistle blowers themselves need to follow certain procedures in order to receive protection. The people themselves must initiate action against their employers due to the fact that the Attorney General's office cannot file suit to enforce people's rights under this new law.

A state or local governmental body may not suspend or terminate the employment of a public employee who reports a violation of the law to an appropriate law enforcement authority, if the employee report is made in good faith and under the terms of the Whistleblower Act.

Any public employee who reports a desecration of law and was the target of retaliation or discrimination that meets the law's requirements may file suit against a state or local governmental body for damages and/or reinstatement, lost wages, costs, and legal fees.

This is one of the most interesting points: Not only can owners, officers and supervisors of a corporation be found liable under this new law, but so can contractors and vendors who compromise the rights of a whistle-blower employee.

Before taking action under the Whistleblower Act, certain sets of requirements need to be followed. The employee must have reported, in good faith, what was believed to be the breaking of a federal or state law, a local government decree, or a rule adopted under a law or a decree.