Exxon Ordered by DOL to Reinstate, Pay Back Pay to Two Whistleblower Scientists

On October 6, the Occupational Safety and Health Administration (OSHA) of the U.S. Department of Labor (DOL) ordered Exxon Mobil Corporation to reinstate and pay hundreds of thousands of dollars in back pay to two scientists the oil giant fired in retaliation for blowing the whistle. The scientists, Dr. Lindsey Gulden and Dr. Damian Burch, raised concerns internally that their team was pressured by Exxon management to manipulate data concerning oil output in order to boost the company’s public filings.

“We are very pleased with the Department of Labor‘s efforts and the result for our clients,” said Neil Henrichsen, one of the scientists’ whistleblower attorneys. “Accountability and a fair and just remedy is what they have been seeking all along in this matter.”

“It is imperative that the SEC and CFTC take prompt action to address the chilling effect caused by this case,” added Stephen M. Kohn of Kohn, Kohn & Colapinto, who is also representing the scientists. “Workers in the oil industry must feel free to communicate their concerns, and oil companies must welcome whistleblowers, not fire them,” continued Kohn, who also serves as Chairman of the Board of Directors of the National Whistleblower Center.

In April 2019, Exxon announced in a financial disclosure that it was increasing its estimate for oil output at drilling sites in Texas and New Mexico. Dr. Gulden and Dr. Burch did not believe any empirical evidence supported this increased estimate and that it was a ploy to increase the company’s public firings. The scientists brought their concerns to Exxon’s H.R. division.

According to the DOL’s decision, Exxon fired the two scientists later that year in retaliation for possibly having blown the whistle to the media about the inflated projections. The DOL found that in doing so, Exxon violated the whistleblower protection provisions of the Sarbanes-Oxley Act. Exxon is required to reinstate Dr. Gulden and Dr. Burch and pay them each over $350,000 in back pay.

According to the DOL, the whistleblowers “suffered financial hardship and mental anguish because [Exxon] illegally retaliated against them.” It further notes that “the terminations were devastating for Complainants, who are high level professionals, neither of whom had ever been terminated from a position.”

Dr. Gulden and Dr. Burch’s disclosures could lead to more trouble for Exxon. Whistleblowers raising concerns about securities violations, such as inflated projections in financial disclosures, are also protected under the U.S. Securities and Exchange Commission (SEC) Whistleblower Program.