Compensation, in the context of whistleblowing, refers to various financial rewards or reimbursements a whistleblower may be entitled to if they successfully expose wrongdoing and face retaliation from their employer.

Back pay is the most common form of compensation and covers lost wages and benefits a whistleblower would have earned if not for the employer’s retaliation. It essentially aims to put the whistleblower back in the financial position they were in before the retaliation occurred. If the whistleblower’s career is negatively impacted due to retaliation (e.g., difficulty finding a new job), they may be compensated for potential lost income they would have earned if they hadn’t been retaliated against with lost future earnings. Compensation can also cover lost benefits like health insurance, retirement contributions, and other perks the whistleblower missed out on due to job loss or other disadvantages caused by retaliation.

The potential for significant financial awards discourages employers from retaliating against whistleblowers. The availability of compensation strengthens the overall protection offered by whistleblower laws, sending a clear message that employers can’t silence whistleblowers without facing serious financial consequences.