Whistle-Blower Law: Contractor Rights And Protections

does whistle blower law apply to a contractor

Whistleblower laws protect employees who report their employers' wrongdoing from retaliation. In the United States, whistleblower protection laws apply to employees of government contractors, subcontractors, grantees, and personal services contractors. These laws prohibit employers from taking adverse actions against employees who engage in protected activity, such as reporting waste, fraud, or abuse, or violations of laws, rules, or regulations related to federal contracts. Employees who believe they have been retaliated against for whistleblowing can file complaints with the relevant Inspector General or seek legal remedies. The specific protections and procedures vary depending on the agency and the nature of the contract.

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Contractor employees are protected from retaliation for reporting wrongdoing

The Whistleblower Protection Laws, as outlined in 41 U.S.C. § 4712, safeguard employees of government contractors, subcontractors, grantees, and personal services contractors from adverse actions when they make a protected disclosure about a federal grant or contract. This protection extends to situations where the employee reasonably believes that the information disclosed pertains to violations of laws, rules, or regulations related to federal contracts or grants, gross mismanagement, waste of federal funds, abuse of authority, or substantial threats to public health and safety.

The National Defense Authorization Act (NDAA) further bolsters whistleblower protections for employees of federal contractors, subcontractors, and grantees. This legislation specifically targets waste, fraud, and abuse in government contracts and grants, which collectively account for approximately half a trillion dollars annually. The NDAA's anti-retaliation provisions offer robust safeguards, including protection from discharge, demotion, or other forms of discrimination.

Additionally, the False Claims Act (FCA) serves as another layer of protection for whistleblowers. It allows individuals to file lawsuits against employers who retaliate against them for engaging in protected conduct. The FCA also incentivises whistleblowing by offering financial rewards for those whose disclosures lead to successful recoveries of government funds.

The U.S. Department of Labor (DOL) enforces whistleblower and anti-retaliation laws through various agencies, including the Occupational Safety and Health Administration (OSHA), Mine Safety and Health Administration (MSHA), Office of Federal Contract Compliance Programs (OFCCP), and Wage and Hour Division (WHD). These agencies work to ensure that employees across various industries are protected from retaliation when reporting issues related to consumer product safety, environmental protection, fraud, and other concerns.

Furthermore, the U.S. Department of Justice (DOJ) also upholds whistleblower rights and protections. All DOJ employees, contractors, subcontractors, grantees, and personal services contractors are safeguarded from retaliation for making protected disclosures. The DOJ encourages individuals to utilise the OIG Hotline for reporting wrongdoing and offers additional resources through the U.S. Office of Special Counsel (OSC).

Contractor employees can rest assured that they have legal recourse and institutional support when reporting wrongdoing. These comprehensive protections are designed to encourage individuals to come forward without fear of retaliation, thereby promoting transparency, accountability, and integrity in both the public and private sectors.

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Whistleblowers must have a reasonable belief that wrongdoing has occurred

Whistleblower laws are designed to protect employees who observe and want to bring to light wrongdoing on the part of their employers. In the United States, these laws apply to all employees of federal contractors, subcontractors, grantees, subgrantees, and personal services contractors. These laws also apply to employees of government contractors and grantees, including those working for the Department of Defense.

For a disclosure to be protected, it must meet two criteria:

  • The disclosure must be based on a reasonable belief that wrongdoing has occurred.
  • The disclosure must be made to a person or entity authorised to receive it.

A "reasonable belief" means that the whistleblower must actually, subjectively, believe that the conduct they are reporting is illegal, and that this belief is objectively reasonable from the standpoint of a neutral observer. In other words, a reasonable person in the same situation, with the same experience, would believe that the reported activity was illegal.

The definition of wrongdoing varies depending on the place of employment, but it generally includes:

  • Violation of a law, rule, or regulation related to a federal contract or grant
  • Gross mismanagement of a federal contract or grant
  • Gross waste of federal funds
  • Abuse of authority relating to a federal contract or grant
  • Substantial and specific danger to public health or safety

If a whistleblower has made a protected disclosure and experiences retaliation as a result, they may file a retaliation complaint. This is unlawful, and the whistleblower has the right to seek protection and redress.

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Whistleblowers must disclose information to an authorised person or entity

Whistleblowers are required to disclose information to an authorised person or entity to be protected under whistleblower laws. In the United States, the authorised audiences for disclosures vary depending on the whistleblower's place of employment.

For employees of the Federal Bureau of Investigation (FBI), disclosures must be made to:

  • A supervisor in the direct chain of command, up to and including the head of the employing agency.
  • The Inspector General.
  • The Office of Professional Responsibility of the Department of Justice.
  • The Office of Professional Responsibility of the FBI.
  • The Inspection Division of the FBI.
  • The Office of Special Counsel.
  • An employee designated by any of the above offices for the purpose of receiving disclosures.

For employees of contractors or grantees, disclosures must be made to:

  • A Member of Congress or a representative of a committee of Congress.
  • An Inspector General.
  • The Government Accountability Office.
  • A Federal employee responsible for contract or grant oversight or management at the relevant agency.
  • An authorised official of the Department of Justice or other law enforcement agency.
  • A court or grand jury.
  • A management official or other employee of the contractor, subcontractor, or grantee who has the responsibility to investigate, discover, or address misconduct.

For employees of the Department of Justice (DOJ), disclosures can be made directly to the OIG Hotline.

It is important to note that disclosures of classified information are not protected unless made in accordance with the laws and rules governing the handling and transmission of such information.

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Whistleblowers are protected from discharge, demotion, or discrimination

Whistleblower laws protect employees from retaliation for reporting evidence of wrongdoing. This includes protection from discharge, demotion, or discrimination. These anti-retaliation provisions are broad and include any adverse employment action that might dissuade a reasonable worker from engaging in protected conduct.

For example, under the Whistleblower Protection Enhancement Act of 2012, it is unlawful for an employer to take retaliatory action against an employee for reporting violations of law, rule, or regulation; gross mismanagement; gross waste of funds; abuse of authority; or a substantial and specific danger to public health or safety.

The National Defense Authorization Act for Fiscal Year 2013 (NDAA) also provides robust whistleblower protections for employees of federal contractors, subcontractors, and grantees. These protections extend to personal services contractors working on defense or civilian contracts or grants. The NDAA whistleblower provisions bar a wide range of retaliatory acts, including discharging, demoting, or otherwise discriminating against a whistleblower.

The U.S. Department of Labor's Whistleblower Protection Laws also prohibit retaliation against employees for reporting issues related to consumer product and food safety, environmental protection, fraud and financial issues, health insurance, and transportation services.

Additionally, the False Claims Act (FCA) protects employees who engage in protected conduct, such as internal reporting of fraudulent activity to a supervisor or investigating a potential FCA violation.

If you believe you have been retaliated against for whistleblowing, you may file a retaliation complaint with the relevant government agency or through the Office of Inspector General (OIG) Hotline.

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Whistleblowers can file a complaint if they believe they have been retaliated against

Whistleblowers are protected by law and cannot be retaliated against for making a protected disclosure. A disclosure is considered protected if it is based on a reasonable belief that wrongdoing has occurred and is made to an authorised person or entity. If a whistleblower believes they have been retaliated against, they can file a complaint.

In the United States, employees of government contractors, subcontractors, grantees, and personal services contractors are protected by whistleblower laws. Under 41 U.S.C. § 4712, these employees are protected from discharge, demotion, or other forms of discrimination if they make a protected disclosure about a federal grant or contract. The protected disclosure must relate to a violation of a law, rule, or regulation concerning a federal contract or grant; gross mismanagement of a federal contract or grant; gross waste of federal funds; abuse of authority relating to a federal contract or grant; or a substantial and specific danger to public health or safety.

If a whistleblower believes they have been retaliated against, they can file a complaint through the OIG Hotline. The Office of Inspector General (OIG) has jurisdiction to investigate allegations of retaliation for making a protected disclosure. The OIG will either investigate the complaint and submit a report of its findings or dismiss the complaint if it is found to be frivolous or failing to allege a violation of whistleblower protection law. If the OIG investigates and finds evidence of retaliation, it will take corrective action, which may include requiring the employer to reinstate the whistleblower, provide compensatory damages and employment benefits, and take affirmative action to prevent further retaliation.

The time limit for filing a whistleblower retaliation complaint varies depending on the specific statute involved. For example, under the Occupational Safety and Health Act (OSH Act), complaints must be filed within 30 days of the alleged violation, while under the Sarbanes-Oxley Act (SOX), the time limit is 180 days. It is important to note that different statutes have different time limits, so whistleblowers should be aware of the specific timeframe that applies to their case.

Whistleblowers can also seek legal representation to help them navigate the process of filing a complaint and protect their rights. There are law firms that specialise in whistleblower protection and have experience representing whistleblowers in various industries and sectors. These lawyers can provide guidance, ensure the whistleblower's rights are upheld, and seek compensation and other remedies on their behalf.

Frequently asked questions

The Whistleblower Protection Law is a law that protects employees of government contractors, subcontractors, grantees, and personal services contractors who report waste, fraud, or abuse. It also extends these protections to personal services contractors working on defense or civilian contracts or grants.

A protected disclosure is when an employee reports evidence of wrongdoing, such as a violation of a law, rule, or regulation related to a federal contract or grant, gross mismanagement of a federal contract or grant, gross waste of federal funds, abuse of authority relating to a federal contract or grant, or a substantial and specific danger to public health or safety.

Whistleblowers have the right to be free from retaliation for making a protected disclosure. This includes protection from being discharged, demoted, or otherwise discriminated against. They also have the right to file a complaint if they believe they have been retaliated against.

A whistleblower can make a disclosure to a member of Congress, an inspector general, the Government Accountability Office, a federal employee responsible for contract or grant oversight, an authorized official of the Department of Justice or other law enforcement agency, a court or grand jury, or a management official or other employee of the contractor or subcontractor who has the responsibility to investigate and address misconduct.

Remedies for whistleblowers who have been retaliated against include reinstatement to their previous position, back pay and other compensation, and attorney's fees.

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