Employees who become aware of inappropriate company conduct are in a difficult position. Some professionals try to report the matter internally, only to face retaliation from their employer. Others may go directly to regulatory authorities.
In specific circumstances, employees may actually be able to file a lawsuit against their employers on behalf of the federal government. If a professional has documentation showing that an employer violated the False Claims Act by fraudulently billing the government, they could initiate a qui tam lawsuit. They act as a relator by initiating the lawsuit. In some cases, the government may step in and take over the lawsuit. Other times, the employee pursues the matter without the government becoming directly involved past a certain point.
What protection do whistleblowing employees have if they choose to file qui tam lawsuits?
Protection from retaliation
Reporting an employer’s illegal conduct is a protected workplace activity. Employees who refuse to break the law and who draw attention to illegal activity are whistleblowers. They have protection from any retaliatory acts by their employer.
Companies cannot fire, transfer or demote workers as punishment for reporting inappropriate billing practices. If employers take punitive measures against employees who have acted as whistleblowers, those employees could have the right to take legal action against the company on their own behalf in addition to the qui tam lawsuit they filed.
Compensation for filing the lawsuit
Despite rules against retaliation, whistleblowing activities can still have a chilling effect on a professional’s career and earning potential. Records of the lawsuit could turn up when employers research a worker online.
Thankfully, qui tam lawsuits that are successful can provide financial compensation to the relator. In scenarios where the government intervenes and participates directly in the lawsuit, relators may receive between 15% and 25% of the funds recovered by the lawsuit. If the government does not intervene, the relator could be eligible for as much as 30%.
Preparing for a qui tam lawsuit can help workers do the right thing while simultaneously protecting themselves. Whistleblowers aware of fraudulent billing practices may need to take the matter to court to hold their employers accountable for their fraudulent conduct. Those punished for acting as whistleblowers may need to go to court to assert their rights as well.