Whistleblower Law: Contractor Rights In Pennsylvania

Whistleblowers play a crucial role in exposing fraud, waste, and unlawful actions by employers. In Pennsylvania, whistleblower laws exist to protect employees who speak up against their employers' illegal activities. These laws cover both public and private sector employees, providing legal recourse if they experience retaliation. The Pennsylvania Whistleblower Law defines a whistleblower as an employee who reports suspected violations of state, local, or federal laws to authorities or supervisors. The law prohibits employers from retaliating against whistleblowers through termination, threats, discrimination, or other adverse actions. It also allows whistleblowers to file civil lawsuits and seek damages, including reinstatement, back pay, and emotional distress damages. However, it's important to note that the law requires employees to act in good faith when reporting violations, without malice or personal gain.

Who is a whistleblower?

A whistleblower is a person who discloses information about any wrongdoing, such as fraud, corruption, waste, abuse, or dangers to public health and safety. This person could be an employee of a company or a government agency, or they could be a contractor or supplier who becomes aware of illegal activities. Whistleblowers typically work inside the organization where the wrongdoing is taking place, but this is not always the case. What matters is that they disclose information about wrongdoing that would otherwise remain unknown.

In the United States, there are many whistleblower laws at the federal, state, and local levels, such as the False Claims Act, the Clean Air Act, and the Antarctic Conservation Act. These laws provide protections and rewards for individuals who report on wrongdoing. For example, the Pennsylvania Whistleblower Law protects individuals who report on fraud, waste, or violations of the law by their employers. The law applies to employees of a "public body," which includes any entity funded by the Commonwealth or political subdivision authority.

Whistleblowers play an important role in society by exposing wrongdoing and holding powerful entities accountable. They are protected by specific laws and company policies to prevent them from losing their jobs or facing retaliation. By coming forward, whistleblowers can initiate criminal investigations, seek monetary damages, and bring about positive change.

There are two types of whistleblowers: internal and external. Internal whistleblowers report misconduct, fraud, or indiscipline to senior officers within the organization, such as the Head of Human Resources or the CEO. On the other hand, external whistleblowers disclose information to people outside the organization, such as the media, higher government officials, or the police.

What constitutes a violation?

A whistleblower is an employee who alerts the proper authorities, supervisors, or news outlets that their employer is doing something illegal or against the public interest. Whistleblower laws in Pennsylvania protect employees of both public and private organisations.

A violation of whistleblower laws in Pennsylvania occurs when an employer takes retaliatory action against an employee who has reported a violation or waste. This includes:

• Termination or firing
• Withholding of pay or benefits
• Reducing an employee's hours
• Demotion
• Failure to promote

The Pennsylvania Whistleblower Law protects employees who make a "good faith report" of an instance of wrongdoing or waste. A good faith report is made when the employee has reasonable cause to believe the report is true and is done without malice or consideration of personal benefit.

The law applies to employees of a "public body", which includes state and local government, as well as any other body funded by or through Commonwealth or political subdivision authority. This includes entities that receive Commonwealth funding such as Medicaid reimbursement or highway transportation funds.

Employees are protected from retaliation when they report to either their employer or an "appropriate authority". An appropriate authority includes federal, state, or local government bodies with jurisdiction over criminal law enforcement, regulatory violations, professional conduct or ethics, or waste.

In addition to the Whistleblower Law, there are other specific Pennsylvania statutes that protect employees in certain situations. For example, employees are protected from retaliation when reporting about an older adult needing protection from abuse or neglect, invoking rights to a smoke-free workplace, or reporting hazardous substances in the healthcare industry.

What is the scope of whistleblower protection?

In the United States, whistleblowing is protected by federal laws, policies, and regulations. The scope of whistleblower protection depends on whether the whistleblower is a government employee, government contractor, or a member of the military.

Whistleblower Protection Act (WPA)

The Whistleblower Protection Act (WPA) protects federal employees and applicants for employment who lawfully disclose information they reasonably believe evidences:

• A violation of law, rule, or regulation
• Gross mismanagement
• A gross waste of funds
• An abuse of authority
• A substantial and specific danger to public health or safety

Whistleblower Protection Enhancement Act (WPEA)

The Whistleblower Protection Enhancement Act of 2012 strengthens protections for federal employees who report fraud, waste, and abuse. It clarifies the scope of protected disclosures and establishes that the disclosure does not lose protection based on certain conditions, such as the employee's motive for reporting or the time that has passed since the occurrence of the events described. The WPEA also expands the penalties imposed for violating whistleblower protections and establishes the position of Whistleblower Protection Ombudsman.

National Defense Authorization Act of 2013 (NDAA)

The National Defense Authorization Act of 2013 (NDAA) enacted a pilot program making it illegal for an employee of a federal contractor, subcontractor, grantee, or subgrantee to be discharged, demoted, or otherwise discriminated against for making a protected whistleblower disclosure. In 2016, Congress amended the program to make those protections permanent.

Pennsylvania Whistleblower Law

In Pennsylvania, the Pennsylvania Whistleblower Law protects those who seek to expose fraud, waste, and violations of the law committed by their employers. The law applies to employees of a "public body," which has been broadly defined to include any entity "funded in any amount by or through Commonwealth or political subdivision authority." This includes entities that receive Commonwealth funding, such as Medicaid reimbursement or highway transportation funds. The law protects employees who make a good faith report of wrongdoing or waste and prohibits employers from retaliating against whistleblowers through actions such as termination, demotion, or failure to promote.

What are the remedies for a whistleblower?

In Pennsylvania, the Whistleblower Law protects employees who report or are about to report in good faith any wrongdoing or waste by their employer. The law defines a whistleblower as someone who "alerts authorities or supervisors of fraud, health and safety code violations, discrimination, harassment or other unlawful activity".

If a whistleblower suffers retaliation, they may seek monetary damages from their employer, including lost pay and benefits, emotional distress damages, punitive damages, and litigation costs such as attorney's fees. The court may also require the employer to reinstate the employee to their previous or an equivalent position, with full seniority and benefits.

Additionally, the employer may be fined up to $10,000 and, if the violation was committed with the intent to discourage the disclosure of criminal activity, the court may order the suspension of the responsible individual from public service for up to seven years.

In the City of Philadelphia, there is a separate whistleblower ordinance that applies to city contractors and providers of city services. Under this ordinance, the employee may be entitled to 10-30% of the damages awarded.

What are the penalties for violating whistleblower law?

In Pennsylvania, a whistleblower is a person who alerts authorities, supervisors, or news outlets about violations of laws, rules, or regulations committed by their employer. Whistleblower laws in the state protect employees of both public and private organizations, and allow victims of retaliation to file civil lawsuits and recover damages.

The Pennsylvania Whistleblower Law provides remedies and penalties for violations. A person who violates the Whistleblower Law under the authority of an employer may be liable for a civil fine of up to $10,000. Additionally, if the court finds that the person intended to discourage the disclosure of criminal activity, they may be suspended from public service for up to seven years, unless they hold an elected public office. The civil fine is paid to the State Treasurer and deposited into the General Fund.

Employees who are victims of retaliation for whistleblowing can seek monetary damages from their employer, including lost pay and benefits, emotional distress damages, punitive damages, and litigation costs such as attorney's fees. The court may also grant injunctive relief, requiring the employer to reinstate the employee to their previous position or an equivalent role, with full restoration of seniority and benefits.

The City of Philadelphia also has a whistleblower ordinance that applies to city contractors and service providers. If an employer is found to have defrauded the city, the whistleblower may receive 10-25% of the damages awarded to the city, which can be triple the amount of the damage caused.

Frequently asked questions