Have you ever wondered what really happens when an employee blows the whistle on unethical conduct, only to suffer punishment from their former employer? Across the country, whistleblower retaliation cases have become critical tools for holding companies accountable while protecting employees from wrongful termination, hostile work environments, and other reprisals.
But what makes these cases successful, and what kinds of damages do courts actually award?
Understanding the False Claims Act
From federal court judgments under the False Claims Act to jury verdicts in state courts, employees have won millions for whistleblower retaliation. The payouts often include back pay, punitive damages, and attorneys’ fees. They also send a message that silencing those who report wrongdoing—like safety concerns, sexual harassment, or illegal marketing—won’t be tolerated.
Let’s explore the real-world mechanics of successful whistleblower retaliation cases and the damages awarded.
Whistleblower Protections Under Federal and State Law
Whistleblower protections are woven through many federal laws. At their core, these rules prohibit employers from punishing workers who report wrongdoing—whether it’s race discrimination, fraud on the federal government, or occupational safety violations.
For example, the False Claims Act (FCA), originally designed to fight fraud in government contracts, includes powerful qui tam provisions. Employees (known as relators) can file False Claims Act cases on behalf of the government for false statements or allegedly overcharging, sharing in any recovery. Crucially, the FCA also prohibits whistleblower retaliation, offering remedies for those who suffered reprisal.
Other key federal statutes include:
- Sarbanes-Oxley Act for corporate fraud and public companies.
- Dodd-Frank Act, establishing SEC whistleblower protections and whistleblower awards.
- Occupational Safety and Health Act, protecting workers who report safety concerns.
- Health Act and related rules, safeguarding those who expose wrongdoing in healthcare companies or health administration contexts.
Meanwhile, state law often expands these protections, creating parallel remedies in state courts.
How Whistleblower Retaliation Cases Work
When an employee suffers adverse action—like wrongful termination, demotion, harassment, or a hostile work environment—because they raised concerns or exposed illegal marketing or fraud, they may have a whistleblower retaliation claim.
These cases typically hinge on proving:
- The employee engaged in protected activity (e.g., report wrongdoing internally or externally).
- The employer knew about this protected activity.
- The employee suffered retaliation, like being fired, demoted, or harassed.
- A causal link between the protected activity and the adverse action.
Court-held decisions often focus on whether the employer’s explanation is credible or a pretext for retaliation. Before you wonder about the average compensation for a whistleblower retaliation case, you need to look at some examples.
Examples of Successful Whistleblower Retaliation Cases
Real-life cases illustrate the stakes.
Consider two whistleblowers at a healthcare company who alleged false claims submitted to Medicare. They faced retaliation after cooperating with investigators. In federal court, they secured a substantial settlement covering back pay, compensatory damages, and attorneys’ fees.
Qui Tam Cases
In another qui tam case, a former executive sued over false statements to the federal government and alleged whistleblowing retaliation after being fired for cooperating with authorities. The case produced both a significant False Claims Act recovery for taxpayers and a separate retaliation case settlement.
A police chief and police officers have also won retaliation claims in state courts, showing that these protections aren’t limited to private sector employees. For example, a New York jury awarded punitive damages after finding retaliation for reporting unethical conduct and safety concerns
What To Remember
These are only a few examples of how effective a whistleblower case can be helpful. Moreover, the Protection Act set in by the former president and the government agency is also a game-changer. The Protection Act ensures that anyone held accountable pays their dues. Moreover, ensuring the whistleblower received successful enforcement action also prevents future victims from facing similar scenarios.
Damages in Whistleblower Retaliation Cases
What do these employees actually win in a whistleblower case? Courts and agencies can award:
- Back pay: Lost wages from the date of retaliation to judgment.
- Reinstatement: Returning to the prior job or a comparable role (sometimes impractical in a hostile work environment).
- Compensatory damages: For emotional distress or reputational harm.
- Punitive damages: To punish former employers for egregious behavior.
- Attorneys’ fees and costs: To ensure employees can find legal representation.
These remedies are designed to make the worker whole and deter future retaliation.
July Verdicts
Jury verdicts and significant settlements have reached millions in high-profile cases, especially where retaliation was blatant or involved sexual harassment, race discrimination, or clear attempts to cover up illegal marketing schemes.
False Claims Act Retaliation Awards
The False Claims Act deserves special attention. A False Claims Act case isn’t just about recovering taxpayer money from fraud. It also protects whistleblowers from retaliation by former employers.
Under the FCA, an employee who suffered retaliation can win:
- Back pay doubled.
- Interest on back pay.
- Compensatory damages.
- Attorneys’ fees and costs.
Federal court decisions routinely uphold these remedies. For instance, a former employee of a defense contractor who alleged false claims and faced wrongful termination secured both a share of the qui tam recovery and a separate retaliation award.
SEC Whistleblowers and International Cases
SEC whistleblowers also receive robust protection and whistleblower awards for exposing securities fraud. The Dodd-Frank Act includes anti-retaliation provisions enforced in federal courts and by the Securities and Exchange Commission itself.
International whistleblowers who report fraud involving U.S. markets can be eligible for these programs, demonstrating the global reach of modern whistleblower programs.
Similarly, cases involving foreign corruption (like FCPA violations) can yield large whistleblower awards while also protecting insiders from retaliation by parent companies or subsidiaries.
Administrative Law Judges and Labor Department Proceedings
Many whistleblower claims are heard first by an administrative law judge at the United States Department of Labor. Statutes like the Sarbanes-Oxley Act and the Occupational Safety and Health Act often require administrative proceedings before moving to the district court.
Administrative judges can award back pay, reinstatement, compensatory damages, and attorneys’ fees. Their decisions are enforceable in federal court if former employers fail to comply.
Hostile Work Environment and Constructive Discharge
Retaliation isn’t limited to firing. Courts recognize that employers sometimes create a hostile work environment so severe that it forces former employees to quit—a legal theory called constructive discharge.
Successful cases in this area have produced large jury verdicts and significant settlements, acknowledging that quitting under duress is often equivalent to wrongful termination.
Qui Tam Cases and Shared Recoveries
In qui tam cases, whistleblowers also share in any recovery for the government, separate from retaliation damages.
For example, a healthcare company that was allegedly overcharged federal programs may settle for millions. The whistleblower (the relator) gets a percentage—sometimes up to 30% if the government declines to intervene.
If they suffered retaliation, they can pursue additional damages on top of their qui tam share.
Supreme Court and Retaliation Protections
The Supreme Court has repeatedly reinforced whistleblower protections. While it has narrowed some statutes’ reach, it generally recognizes the vital role whistleblowers play in exposing fraud and misconduct.
For example, in interpreting the Sarbanes-Oxley Act, the Court has underscored that whistleblower retaliation cases help enforce securities laws and maintain market integrity.
Legal Strategy and Representation
Whistleblower lawyers, attorneys with experience, and specialized law firms play a critical role. They help:
- File whistleblower claims or qui tam cases.
- Navigate administrative law judge proceedings.
- Prepare for district court or federal court litigation.
- Negotiate substantial settlements.
- Recover attorneys’ fees to ensure no cost barrier for whistleblowers.
A free and confidential review with an attorney often reveals options employees didn’t know existed.
Conclusion
Successful whistleblower retaliation cases and the damages awarded prove one thing clearly: retaliation doesn’t pay.
From False Claims Act recoveries to jury awards for wrongful termination, these cases secure back pay, compensatory damages, punitive damages, and attorneys’ fees for those brave enough to report wrongdoing.
They also hold former employers accountable and send a clear message that silencing whistleblowers violates federal laws, state law, and fundamental fairness.
Learn About Whistleblower Retaliation with BLG
Have you suffered retaliation for speaking up about unethical conduct or fraud? Contact Bourassa Law Group today for a free and confidential review. Our experienced attorneys can help you understand your rights and pursue the remedies you deserve.
1-800-870-8910