Whistleblower Protection Laws: A Comprehensive Guide [2025]

False Claims Act

The False Claims Act is a federal law that allows individuals to bring legal action against individuals or companies who defraud the government. This law targets fraud related to government contracts or where government funds are involved.

Whistleblowers, or employees, also known as relators, who file a qui tam lawsuit on behalf of the government are protected from retaliation by the False Claims Act. To deter retaliation, the False Claims Act offers various remedies, such as double back pay, reinstatement, front pay, damages, and the payment of attorney fees or costs.

The types of disclosures covered include the following:

• Knowingly submitting false claims for payment to the government.
• Knowingly using false records or statements to obtain payment from the government.
• Conspiring to defraud the government by getting a false claim allowed or paid.

This program also offers compensation to whistleblowers. Relators can receive a portion of the government’s recovery ranging from 15% to 30%, which depends on several factors, such as the whistleblowers involvement in the investigation.

Dodd-Frank Act

Enacted in response to the 2008 financial crisis, the Dodd-Frank Act offers incredibly strong protections against retaliation. It aims to increase transparency and accountability in the financial industry by supporting whistleblowers.

It includes provisions that incentivize and protect whistleblowers who report violations (or who provide original information) of securities laws to the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).

Under the SEC and CFTC, the disclosures covered might include:

• Fraud such as Ponzi schemes, insider trading, or misappropriation
• Market manipulation such as spoofing or fictious transactions
• Trading violations such as unauthorized swap transactions
• AML violations, such as violations of the Bank Secrecy Act (BSA)
• Accounting fraud and violations, such as failure to produce or maintain records

Under Dodd-Frank, whistleblowers who come forward to the SEC or CFTC are protected from retaliation. The law states the following:

“No employer may discharge, demote, suspend, threaten, harass, directly or indirectly, or in any other manner discriminate against, a whistleblower in the terms and conditions of employment because of any lawful act done by the whistleblower, in (a) in providing information to the Commission in accordance with this section (Section 922) (b) in initiating, testifying in, or assisting in any investigation or judicial or administrative action of the Commission based upon or related to such information; or in making disclosures that are required or protected under the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7201 et seq.), the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.), including section 10A(m) of such Act (15 U.S.C. 78f(m)), section 1513(e) of title 18, United States Code, and any other law, rule, or regulation subject to the jurisdiction of the Commission.”

Whistleblowers can also receive between 10% and 30% of monetary sanctions collected by the SEC or CFTC that exceed $1 million. The percentage a whistleblower receives also depends on several factors.

IRS Whistleblower Program

The Taxpayer First Act (TFA) of 2019 significantly strengthened whistleblower protections for tax whistleblowers. It prohibits employers from retaliating against employees who provide information to the IRS about tax law violations. This means they are prohibited from firing, demoting, harassing, or discriminating against a whistleblower.

Remedies available to successful whistleblowers can include reinstatement, double back pay, and compensation for damages. The IRS Whistleblower Program now provides more substantial protection from retaliation for reporting the following:

• Tax evasion, whether it’s the deliberate non-payment of tax to illegal offshore banking.
• Tax fraud, such as falsifying tax returns or creating fake invoices.
• Underreporting income by concealing business income or incorrect classification.

Under the IRS Whistleblower Program, whistleblowers can receive between 15% and 30% of the proceeds collected by the IRS, depending on the quality of the information provided. There are many other complex factors that determine the percentage.

FinCEN’s AML and Sanctions Whistleblower Program

The Financial Crimes Enforcement Network (FinCEN) is a bureau within the U.S. Department of the Treasury, who collects and analyzes financial transactions that aim to combat international money laundering, terrorist financing, and other crimes.

This program encourages individuals, such as bank employees, clients, or contractors, to come forward regarding violations of AML laws. This strengthens the enforcement of critical foreign policy and anti-money laundering tools.

Under the new AML program, whistleblowers are eligible to receive protection from retaliation. As the law explains, employers cannot “directly or indirectly, discharge, demote, suspend, threaten, blacklist, harass, or in any other manner discriminate against a whistleblower in the terms and conditions of employment or post-employment.”

Whistleblowers are eligible to receive a mandatory award between 10% and 30% of the sanctions imposed by FinCEN if their original information leads to a successful enforcement action.

The Whistleblower Protection Act

Enacted to strengthen protections for federal employees, the Whistleblower Protection Act aims to promote accountability and transparency within the federal government. It offers protection against retaliation for federal employees who disclose wrongdoing, such as violations of law, rule, or regulation. It can also include protection for reporting:

• Gross mismanagement.
• Gross waste of funds.
• Abuse of authority.
• Substantial and specific danger to public health or safety.

The law specifically prohibits federal agencies from retaliating against employees who make protected disclosures to supervisors, Inspectors General, Congress, or The Office of Special Counsel (OSC). The OSC plays a crucial role in investigating and prosecuting whistleblower retaliation cases.

Remedies for successful whistleblowers can include reinstatement and back pay. And other damages, as well as disciplinary action against the retaliating official.

Sarbanes-Oxley Act (SOX)

Enacted in response to major corporate accounting scandals, the Sarbanes-Oxley Act aims to enhance corporate governance and financial reporting integrity. It includes provisions to protect employees of publicly traded companies who report fraud, such as:

• Mail fraud
• Wire fraud
• Bank fraud
• Securities fraud
• Violations of securities laws

Under SOX, employees of publicly traded companies are protected from retaliation for reporting suspected fraud to federal regulatory or law enforcement agencies, including the SEC, DOJ, and even Congress.

Enforcement of SOX whistleblower protections is handled by the Department of Labor’s Occupational Safety and Health Administration (OSHA). Remedies for successful whistleblowers may include reinstatement, backpay plus interest, and compensation for legal fees or attorney fees.

OSHA’s Whistleblower Protection Program (taken from OSHA PDF)

OSHA’s Whistleblower Protection Program enforces the provisions of more than 20 federal laws protecting employees from retaliation for, among other things, raising or reporting concerns about hazards or violations of various workplace laws.

Retaliation is an adverse action against an employee because of activity protected by one of these whistleblower laws, which can include firing, demotion, denying promotion or overtime, denying benefits, harassment, or constructive discharge, among others.

Employees who believe that they have experienced retaliation in violation of one of these laws may file a complaint with OSHA.

Following is a list of statutes which OSHA enforces. Each statute has a different time frame in which a complaint can be filed.

• Anti-Money Laundering Act (90 days)
• Asbestos Hazard Emergency Response Act (90 days)
• Clean Air Act (30 days)
• Comprehensive Environmental Response, Compensation and Liability Act (30 days)
• Consumer Financial Protection Act of 2010 (180 days)
• Consumer Product Safety Improvement Act (180 days)
• Criminal Antitrust Anti-Retaliation Act (180 days)
• Energy Reorganization Act (180 days)
• Federal Railroad Safety Act (180 days)
• Federal Water Pollution Control Act (30 days)
• International Safe Container Act (60 days)
• Moving Ahead for Progress in the 21st Century Act (motor vehicle safety) (180 days)
• National Transit Systems Security Act (180 days)
• Occupational Safety and Health Act (OSH Act) (30 days)
• Pipeline Safety Improvement Act (180 days)
• Safe Drinking Water Act (30 days)
• Sarbanes-Oxley Act (180 days)
• Seaman’s Protection Act (180 days)
• Section 402 of the FDA Food Safety Modernization Act (180 days)
• Section 1558 of the Affordable Care Act (180 days)
• Solid Waste Disposal Act (30 days)
• Surface Transportation Assistance Act (180 days)
• Taxpayer First Act (180 days)
• Toxic Substances Control Act (30 days)
• Wendell H. Ford Aviation Investment and Reform Act for the 21st Century (90 days)

State False Claims Act laws can protect and reward those reporting fraud or corruption, often through qui tam lawsuits. However, these protections vary greatly. Some states offer strong safeguards, while others offer limited or no protection. For example, cities like New York City may have additional labor laws to protect employees.

Below is a table with a list of state whistleblower laws and important cases:

Whistleblowers who would like to report wrongdoing and seek protection can avoid retaliation altogether by keeping concerns to themselves and understanding the best practices for reporting their concerns under each program listed above, which vary. Some even allow for anonymous filing, which adds an extra layer of protection to disclosures. Regardless of which law your disclosure is covered under, the general process for reporting wrongdoing is as follows:

1. Seek Legal Assistance: given the complexity of most whistleblower cases, it’s advised that you contact a whistleblower attorney for legal assistance. Most whistleblower attorneys with integrity will work on a contingency basis, which means they only get paid if they win your case. An attorney can help you in many ways, including:Advise you on the specific laws applicable to your situation.

• • Help you understand your rights and potential risks.
  • Guide you on how to properly document evidence.
  • Represent your interests throughout the reporting process.
  • Protect your anonymity where possible.
  • Ensure your reports are filed on time.

When seeking attorney, look for one with a proven track record winning whistleblower cases, and one who has experience in your specific industry or area of concern (e.g., financial fraud, environmental violations).

2. Document Evidence: your attorney will provide you with the best tips on collecting evidence legally, as collection methos vary from state to state. For the most part, you’ll want to document the following:

• • Dates, times, and locations of incidents.
  • Names and titles of individuals involved.
  • Specific details of the wrongdoing.
  • Copies of relevant documents (e.g., emails, memos, financial records).
  • Any evidence of attempts to conceal the wrongdoing.

And when you’re documenting, remember the following:

• • Keep detailed notes.
  • Organize documents chronologically.
  • Make copies of electronic files.
  • Do not remove original documents from your employer’s property.
  • Do not break the law while gathering documents. This means no hacking.

3. Determine Proper Reporting Channel: depending on your concern, your employer has an internal compliance hotline or reporting system, consider using it, but only after speaking with your attorney. Reporting internally may help your case later if you choose to report externally.If you choose to report externally, your attorney will help you determine the appropriate government agency to contact (e.g., SEC, IRS, OSHA, EPA, Department of Justice). Then it’s up to them to help you file the appropriate tip or complaint form to begin the process.

4. File the Report: each agency has specific procedures for reporting wrongdoing, and an attorney will ensure your report is complete and accurate with all the relevant documentation. They’ll also ensure filing deadlines are met, as failure to meet deadlines could result in your case being dismissed.It’s at this point that you must maintain strict confidentiality and anonymity! Sharing information to colleagues, family, or friends, may result in information being leaked, which can lead to retaliation. Your attorney can advise you on how to protect your identity.

5. Cooperate With Investigators: once your report has been submitted, you’ll need to wait to hear from the agency to see if they’ve decided to pursue your case. With the help of your attorney, cooperate fully with any investigations conducted by government agencies.If you experience retaliation, document it, and contact your attorney immediately. Your attorney can help you file a complaint with the appropriate agency or pursue legal action.

While the investigation is taking place, we urge you to familiarize yourself with the whistleblower protection laws that apply to your situation. We recommend reading Rules for Whistleblowers: A Handbook for Doing What’s Right (Lyons Press, 2023) for a comprehensive overview of your rights.