Whistleblower Law: Contractor Rights In Delaware

Whistleblower laws in the United States are designed to protect employees who report fraud, illegal conduct, or other unethical business practices in the workplace. In Delaware, the Delaware Whistleblower Protection Act covers both public and private employees, including contractors, and has a three-year statute of limitations. This means that employees who are retaliated against for whistleblowing can file a civil action for declaratory relief, actual damages, or both within three years of the occurrence. The Delaware False Claims and Reporting Act also provides whistleblower awards and protection from retaliation.

Who is protected by Delaware's whistleblower laws?

Delaware's Whistleblower Protection Act covers both public and private employees, including at-will employees, contract employees, independent contractors, and volunteer firefighters. The law protects employees who report or are about to report violations of laws or regulations to a public body or their supervisor, as well as those who participate in investigations or refuse to commit violations.

The Delaware False Claims and Reporting Act, based on the federal False Claims Act, also provides whistleblower protection from retaliation. This law allows whistleblowers to file "qui tam" lawsuits if they know of defendants who present false or fraudulent claims for payment to the state, misappropriate state property, or conceal or decrease payments owed to the state.

In addition to these laws, Delaware also has specific statutes protecting government and public employees, including the Public Employees Protection statute. This statute prohibits retaliation against public employees who report violations of laws or regulations and allows them to bring civil actions for injunctive relief, actual damages, or both within 90 days of the alleged violation.

What protections are provided by the Delaware False Claims and Reporting Act?

The Delaware False Claims and Reporting Act (DFCRA) provides protections for whistleblowers, including awards and protection from retaliation.

Whistleblower Awards

The DFCRA provides for whistleblower awards, with the percentage of the award depending on whether the state intervenes and prosecutes the matter. Whistleblowers may receive between 15 and 25 percent of any recovery if the state intervenes and prosecutes, and between 25 and 30 percent if the state does not intervene. The court may reduce the award if the whistleblower's complaint is based primarily on publicly disclosed information or if the whistleblower planned and initiated the fraud.

Protection from Retaliation

The DFCRA also protects whistleblowers from employment retaliation as a result of their whistleblowing. This protection includes:

• Reinstatement with the same seniority status that the whistleblower would have had without the retaliation
• Two times the amount of back pay
• Interest on the back pay
• Compensation for any special damages sustained as a result of the retaliation, including litigation costs and reasonable attorneys' fees

Time Limits

Whistleblowers must generally file a complaint within six years of the violations they are reporting, but this time limit may be extended in certain cases to up to ten years.

What is the statute of limitations for whistleblower claims in Delaware?

The statute of limitations for whistleblower claims in Delaware is generally six years from the date of the violation, or three years from when the facts material to the right of action are known or reasonably should have been known by the government official charged with responsibility to act. However, in no event can a civil action be brought more than ten years after the date of the violation.

The Delaware Whistleblower Protection Act, which covers public and private employees, has a three-year statute of limitations. Under this Act, whistleblowers can obtain reinstatement, back pay, and attorney fees.

Whistleblowers must generally file a "qui tam" complaint within six years of the violations they are reporting, but the time for filing may be extended in certain cases to up to ten years. Qui tam lawsuits can be filed by whistleblowers who know of defendants who, among other violations, knowingly present false or fraudulent claims for payment to the state, misappropriate state property, or conceal, avoid, or decrease an obligation to pay or transmit property to the State of Delaware.

What constitutes a violation under Delaware's whistleblower laws?

Delaware's Whistleblower Protection Act covers public and private employees, including contractors, and offers protection to those who report violations or suspected violations of the law. A violation under Delaware's Whistleblower laws occurs when an employer takes retaliatory action against an employee who has reported or is about to report a violation. This includes discharging, threatening, or otherwise discriminating against the employee in terms of their compensation, work conditions, location, or privileges.

The Delaware Whistleblower Law, or the Delaware False Claims and Reporting Act, allows whistleblowers to file "qui tam" lawsuits if they are aware of defendants who have committed violations such as knowingly presenting false or fraudulent claims for payment to the state, misappropriating state property, or avoiding/decreasing obligations to pay or transmit property to the state.

Under the Delaware Whistleblower Law, a defendant may be ordered to pay up to three times the actual damages to the state, in addition to civil fines for each violation. Whistleblowers may receive between 15-25% of the recovery when the state intervenes and prosecutes, and 25-30% when it does not. The award amount may be reduced if the whistleblower's complaint is based on publicly disclosed information or if they planned and initiated the fraud.

The Delaware Whistleblower Protection Act offers similar protections, allowing employees to bring civil actions for declaratory relief, actual damages, or both within three years of the alleged violation. Remedies may include reinstatement, payment of back wages, reinstatement of fringe benefits and seniority rights, expungement of records, and litigation costs, including attorney fees.

What remedies are available to whistleblowers in Delaware?

Whistleblowers in Delaware are protected by state and federal whistleblower laws. The Delaware Whistleblower Protection Act covers public and private employees, including contractors, and has a three-year statute of limitations.

Remedies available to whistleblowers in Delaware include:

• Reinstatement of employment with the same seniority status
• Payment of back wages
• Full reinstatement of fringe benefits and seniority rights
• Expungement of records relating to the disciplinary action or discharge
• Actual damages
• All or a portion of litigation costs, including attorneys' fees

In addition, the Delaware False Claims and Reporting Act allows whistleblowers to file "qui tam" lawsuits if they know of defendants who, among other violations:

• Knowingly present false or fraudulent claims for payment to the state
• Misappropriate state property
• Conceal, avoid, or decrease an obligation to pay or transmit property to the State of Delaware

Penalties under the Delaware False Claims and Reporting Act include:

• Up to three times the actual damages to the state
• Civil fines for each violation of the Act

Rewards for whistleblowers under the Delaware False Claims and Reporting Act include:

• Between 15 and 25 percent of any recovery when the state intervenes and prosecutes
• Between 25 and 30 percent of any recovery when the state does not intervene
• Protection from retaliation, including reinstatement, back pay, interest on back pay, and compensation for any special damages

Frequently asked questions