A “blacklist” is a list of individuals or entities that are denied certain privileges, services, or opportunities, typically because they are perceived as undesirable or untrustworthy. People are often placed on a blacklist due to perceived misconduct, non-compliance with rules, or conflicts of interest.

This practice is illegal in employment if it stems from a whistleblower being fired and blacklisted for reporting concerns. Blacklisting is used to silence employees and prevent others from coming forward, violating protections meant to ensure the integrity and transparency of organizational practices.

The practice of blacklisting has a lengthy history that dates back to the 1610s. People with their names on a blacklist were considered suspicious and people were advised to stay away from them. By the late 1800s, prospective employers were receiving a blacklist including the names of employees who were rumored to be involved in union organizing.

Types of Blacklisting

Blacklisting can occur in various domains such as employment, government, Hollywood, and between countries.

Employment

Blacklisting is the intentional exclusion of individuals from employment within an industry. While blacklisting individuals involved in illegal activities is generally accepted, retaliatory blacklisting is illegal. This occurs when employees are prevented from finding work after reporting fraud, misconduct, or safety concerns. Whistleblowers often face challenges, including blacklisting, despite legal protections designed to encourage reporting wrongdoing.

For example, former New York Air National Guard employee Marrita Murphy came forward with information on the agency’s infringement of six environmental statutes. Murphy’s disclosures led her to be subsequently blacklisted in the industry. Murphy received compensation and damages for the retaliation she experienced, and her case set a precedent prohibiting the badmouthing of whistleblowers seeking employment.

Government

The United States government has a series of lists that could be considered as blacklists. They publicize the names of individuals or organizations that are prohibited or restricted from doing business in the United States or with United States businesses. This is mainly done when an individual or entity commits activities contrary to the national security or foreign policy interests of the United States.

For example, the U.S. Treasury has a blacklist of individuals and groups who are unable to do business with the entities in the U.S. People and groups may be put on this list for various reasons including affiliation with a nation or an industry that the U.S. has sanctioned or that might be involved in drug trafficking or terrorist operations. This list is called the Specially Designated Nationals and Blocked Persons List. Other US government agencies such as the Department of State and Department of Commerce have their own blacklists as well.

Hollywood

Blacklisting has historically been a prominent practice in the Hollywood industry. Specifically, Hollywood experienced a significant period of blacklisting driven by anti-communist sentiments, particularly during the McCarthy era. It was known as the “Hollywood Blacklist,” involving the exclusion of individuals suspected of having communist affiliations or sympathies.

Many of the biggest names in Hollywood were called to Washington and subjected to intensive questioning concerning their political views and the views of their friends and colleagues. A group of screenwriters and directors known as the Hollywood Ten were imprisoned for their refusal to testify. The Hollywood Ten were placed on an official blacklist and prohibited from ever again working for major companies in the entertainment industry. The blacklist remained in place until the 1960s, which was many years after the first surge of political panic had passed.

Between Countries

Blacklisting can also occur between countries via export bans, trade restrictions, or sanctions. Countries may blacklist other nations, preventing them from exporting goods, accessing technology, or participating in international trade agreements. This is often used as a political tool to exert pressure or punish for actions deemed unacceptable, such as human rights violations or acts of aggression. An example of this is the 2019 U.S. export ban on China-based Huawei, which prompted other countries to follow suit.

The Hardships from Being Blacklisted

Being blacklisted can have profound effects on an individual including both professionally and personally. The consequences often extend beyond the immediate loss of employment and can significantly impact a person’s mental and emotional well-being.

For professionals who have invested years of education and experience into a particular industry, such as oil and gas engineers, being blacklisted means their specialized skills may become undervalued, effectively ending their career prospects in that area. The job loss can additionally cause severe financial hardship. This along with the reputational damage can take a severe mental toll on individuals and their families.

Legal Protections Against Blacklisting

If a whistleblower has experienced blacklisting for reporting fraud, misconduct, abuse (in government), or violations of a specific law (securities or commodities), they can report their concerns under the relevant programs, which offer protections against retaliation. These include:

• SEC Whistleblower Program: Protects individuals who report securities fraud to the SEC under
  the Dodd-Frank Act.
• CFTC Whistleblower Program: Protects individuals who report violations of the Commodity
  Exchange Act to the CFTC under the Dodd-Frank Act.
• FinCEN Whistleblower Program: Protects individuals who report money laundering and other
  financial crimes to FinCEN under the Dodd-Frank Act.
• Sarbanes-Oxley Act (SOX): Protects employees of public companies who report financial fraud.
  Dodd-Frank Wall Street Reform and Consumer Protection Act: Protects individuals who report
  securities fraud to the SEC.
• False Claims Act: Protects individuals who report fraud against the government, and under qui tam, may offer awards.
• Consumer Financial Protection Bureau (CFPB) Whistleblower Program: Protects employees and
  others who report violations of consumer financial laws.
• Occupational Safety and Health Act (OSHA): Protects employees who report workplace safety
  and health violations.
• Department of Labor (DOL) Whistleblower Protection Programs: Encompasses a wide range of
  protections for employees in various industries