Thinking About Becoming a Whistleblower? Read This First

When you’re thinking about reporting serious wrongdoing that negatively impacts you or others, you have to consider the consequences. Exposing wrongdoing by becoming a whistleblower comes with heavy stakes. Speaking out can harm you socially, financially, and legally. That’s why it’s critical to understand what you’re getting into and prepare accordingly. This article will help you understand what to expect and how to protect yourself.

Know what counts as whistleblowing

Whistleblowers are protected under the law, but it’s essential to understand what counts as whistleblowing to know if you’ll be protected. Whistleblowing isn’t just telling someone what’s going on. Legal whistleblower protections only apply when you report protected activity to the right authorities. If you go to the wrong person at the wrong time, you can lose your protections.

Whistleblower protections cover reporting issues like fraud, safety violations, environmental harm, and regulatory violations that are enforced by OSHA and other related agencies. These laws were put in place to prevent retaliation, but they don’t eliminate the risk of backlash.

More specifically, whistleblowing is when you report wrongdoing that you reasonably believe is true and disclose the information through the right channels. If you just complain about a policy to a coworker, that doesn’t qualify for legal protection.

Hire a whistleblower lawyer before you file a report

Whistleblower laws prohibit employer retaliation in response to reports, but not every industry or type of misconduct is specifically covered. That’s exactly why you need to hire an experienced whistleblower attorney before taking action. They’ll review the details of your situation and tell you if you have a case. Find out if your claim is valid first so you don’t leave yourself exposed.

Understand the risk of retaliation

When you’re getting ready to blow the whistle, consider retaliation a likely possibility rather than a worst-case scenario. Even though laws exist to protect you against retaliation, it might happen, and it could be subtle. Instead of firing you, your employer might freeze your promotion, reassign you to busywork, exclude you from meetings, revoke your responsibilities, downgrade your pay, or create a toxic work environment. These forms of retaliation are disguised as “performance management” and that’s why it’s essential to document every interaction and escalation you experience. You’ll need this documentation to prove your case.

Know the potential for financial reward (or not)

Under the False Claims Act and SEC whistleblower programs, whistleblowers can receive financial compensation if their report leads to successful enforcement. For example, in 2022, whistleblowers helped the government recover $2.2 billion, and they received around $488 million in compensation. That’s an average of $748,000 per case. When the SEC is involved in these cases, average awards are in the millions.

Although some whistleblowers can receive awards of up to 30% of the penalties collected, it’s not guaranteed. Not everyone is rewarded financially. If your case is ignored or there isn’t a significant enforcement action, you probably won’t get any money. However, non-monetary benefits can be satisfying when your goal is to stop injustice or protect the public. In that case, you’ll need to be prepared to have everyone question your motives because some people will insist you’re only pursuing your claim for money.

The bottom line is that financial rewards do exist but it’s not guaranteed.

Reporting channels are strict

The specific laws that apply to your situation vary by state and employer, but in general, you’ll need to make sure you use specific internal reporting channels first before reporting to an external agency. Some statutes require escalating within the organization before going to a regulator. This can make your situation rocky. It means you can’t just file an anonymous report with a regulator and pretend you don’t know anything about it at work, hoping to keep your job. In most cases, it’s not possible to remain anonymous. And since you’ll need to submit evidence with personal details, like emails and conversations, it will be obvious who made the report.

Your documentation must be tight

The stronger your documentation, the stronger your case. Everything needs to be documented, including timestamped communications, photos, logs, and witness statements when available. Back up all of your files securely but avoid doing anything that could be considered stealing or unauthorized access.

Be prepared to manage the fallout

More likely than not, you’ll need to change jobs and possibly even careers after blowing the whistle. Your coworkers and managers may distance themselves from you to avoid association, and the rumor mill will be spinning hard. Make sure you’re ready to handle these situations professionally.

Blowing the whistle comes with potential risk and reward. If you choose to come forward, get a lawyer first and be ready for potential backlash.