— Whistleblowers Category Archives — Dallas Employment Lawyer Blog Published by Dallas, Texas Employment Lawyers

Whistleblower Protection Under the Sarbanes-Oxley Act

September 30, 2020 | Fadi Yousef

fadi-yousef The Sarbanes-Oxley Act of 2002 (“SOX”) is a federal law that established new standards for public companies and created whistleblower protection for employees who disclose information that could show a violation of federal securities law, SEC rules, or any federal law related to fraud against the shareholders. Given its diverse civil, criminal and administrative provisions, SOX could be considered one of the most important whistleblower protection laws.

Unlike most whistleblower laws, SOX’s whistleblower protection provisions are not limited to providing a legal remedy for wrongfully terminated employees. In addition to containing employment-based protections for employee whistleblowers, the law contains other provisions directly relevant to whistleblower protection:

Healthcare workers’ whistleblower protections under the Texas Health & Safety Code

September 17, 2020 | Austin Campbell

austin-campbell Over 1.6 million Texans were employed in the healthcare and social assistance industry by 2019, and that number is expected to grow steadily over the next decade. Nursing in particular is one of the top five occupations in the state by number of online “help wanted” ads. Because of that, it is all the more important that healthcare workers here are well-trained and competent, and also are empowered to say something when they see something that puts patient health or safety at risk.

Fortunately, the Texas Health & Safety Code provides some powerful whistleblower protections that are unique to the healthcare industry. Unfortunately, figuring out if you fall within those protections is not always simple because the Code has so many different components. Making things harder, Texas courts have interpreted relatively few parts of the Texas Health & Safety Code compared to other employment laws. This article is meant to provide the reader with some basic information about some of the protections that healthcare workers (and others) have under this law, as well as limitations in the Code.

Secretly Recording in the Workplace: Can I do it? Should I do it?

July 10, 2020 | Austin Campbell

austin-campbell Generally, you have the burden of proving if your employer’s actions toward you violate the law. Of course, sophisticated employers seldom admit to doing something that breaks the law, and often employment cases turn on a “he-said/she-said” moment, where the employee claims something was said and the employer later denies it. One way, we sometimes see employees try to even the playing field by secretly recording conversations in the workplace to have proof of illegal activity beyond their own word.

This article answers some key questions employees often have about recording in the workplace. Is it legal for you to do it? Can your employer order you not to? Can your employer punish you for recording? Is it a good idea?

“That doesn’t seem safe!” Employee Rights under OSHA

June 8, 2020 | Austin Campbell

austin-campbell The Occupational Safety and Health Administration (OSHA) is part of the Department of Labor and administers the Occupational Safety and Health Act (OSH Act), as well as numerous other safety and whistleblower laws. OSHA also sets safety standards for various industries. Because of OSHA, many employers have a general duty to prevent working conditions that pose a risk of serious and recognized harm.

Texas Claims under the SEC’s Whistleblower Program

March 1, 2019 | Law Office of Rob Wiley, P.C.

Over the past few decades, government regulators have begun to keep a much closer eye on the conduct of those in charge at large corporations. However, regulators may not be privy to all the inner-workings of a corporation, and given the number of corporations and lack of available resources to ferret out the wrongdoers, corporate misconduct flew under the radar for years. More recently, however, the Securities and Exchange Commission (SEC) started the SEC whistleblower program, which relies on employee whistleblowers to report violations of U.S. securities laws.

Under the SEC whistleblower program, an employee who voluntarily reports information that assists the SEC in recovering amounts of more than $1 million is eligible for a financial award. The amount of the award ranges between 10% to 30% of the monetary sanctions collected by the government. These funds are paid out of a separate fund called the Investor Protection Fund, rather than with company proceeds.

To be eligible for a reward through the SEC Whistleblower program, a reporting employee must be able to show the following:

The information provided relates to a violation of U.S. securities law or relates to the bribery of a foreign official;
The information was provided voluntarily, and not in response to questioning or an investigation;
The information was based on personal knowledge, and not publicly available records; and
The information must result in a new investigation or significantly contribute to an existing investigation.

The National Defense Authorization Act and the Protections It Provides to Texas Contractors and Employees

February 1, 2019 | Law Office of Rob Wiley, P.C.

The federal government has certain laws ultimately designed to prevent the misuse or waste of federal funds. Thus, to encourage federal employees to “blow the whistle” on those engaging in misconduct, lawmakers passed the Whistleblower Protection Act (WPA). Under the WPA, government employees who report certain acts of misconduct are protected from an employer’s retaliation.

For decades, the federal government has relied upon non-government private contractors to perform certain government functions. However, the WPA only applies to government employees. Thus, to extend the whistleblower protections of the WPA to private government contractors, Congress included certain protections in the National Defense Authorization Act (NDAA).

As noted above, the NDAA provides protections to private contractors hired by the federal government when they report waste, fraud, or abuse in federal government contracts and grants. The NDAA also covers whistleblowers who are employees of private contractors, as well as subcontractors and anyone else working on a government contract or grant.

Texas Whistleblowers Are Protected from Employer Retaliation

December 21, 2018 | Law Office of Rob Wiley, P.C.

Employees of organizations are privy to all sorts of information that is not available to the public. Thus, it is not uncommon for an employee to discover that their employer is defrauding the government. When an employee discovers their employer is engaging in fraud, they can blow the whistle on their employer’s illegal conduct by filing a Texas qui tam lawsuit.

A qui tam lawsuit is essentially a whistleblower claim. The term qui tam is short for the Latin term, “qui tam pro domino rege quam pro se ipso in hac parte sequitur,” which roughly translates to “he who brings the action for the king as well as himself.” The idea behind a qui tam lawsuit is to incentivize those with knowledge that an organization is defrauding the government to come forward.

An employee who has knowledge of an employer’s fraud can file a civil lawsuit under the False Claims Act seeking to recover compensation for the employer’s fraud on behalf of the government. Once a qui tam lawsuit is filed, it is kept under seal while the Justice Department investigates the claim. During this period, the subject is not made aware they are under investigation.

Can government workers be fired for exercising their right to free speech?

February 2, 2018 | Law Office of Rob Wiley, P.C.

The First Amendment prevents the federal, state, and local governments from infringing on rights of religion, press, speech, assembly, and petition. While workers of private companies are not protected from being fired for what they say, government workers may be protected from retaliation for exercising some of their First Amendment rights. Specifically, they are protected with regard to speech when talking about issues believed to be of public concern. They are not protected from retaliation for everything they say, however.

In 1968 the Supreme Court ruled in Pickering v. Board of Education that a government worker’s interest in remarking on issues of public concern needed to be balanced against the government’s interest as an employer in increasing the efficiency of public services that it offers through its workers. The Court noted that government workers are often in the best position to know any problems within government agencies, and those problems should be transparent, so the public can decide how best to address them. In that case, the Supreme Court also said that this type of speech isn’t protected if it knowingly or recklessly includes false statements. Critical to this case was that the teacher plaintiff was speaking more as a citizen than as a government employee when writing the letter to the editor with which the school district took issue and for which it terminated him.

A court deciding whether a government worker was impermissibly subjected to retaliation under the First Amendment must look at: (1) whether the plaintiff was involved in an activity protected by the Constitution, (2) whether the government’s actions injured the plaintiff, such that an ordinary person would be deterred from continuing with those activities, (3) whether the injurious actions stemmed at least partly from utilizing one’s constitutional rights, (4) whether the worker’s speech was about a subject of public interest, and (5) whether the worker’s interest as a citizen in talking about public interest matters outweighs the government’s interest in efficient service provision.

What is the SEC whistleblower program?

January 18, 2018 | Law Office of Rob Wiley, P.C.

The SEC whistleblower program was established by Congress as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. The Dodd-Frank Act is one of several financial reforms, another of which was the Sarbanes Oxley Act, which was passed in 2002.

The whistleblower program gives awards to eligible whistleblowers who voluntarily give original information to the SEC that results in successful SEC enforcement actions with civil sanctions that are greater than $1 million. A whistleblower is an individual or several individuals acting jointly. Corporations and similar entities cannot be considered whistleblowers.

To be considered original information for the purposes of an award, a Texas whistleblower has to include information derived from their independent knowledge or analysis, and it can’t be known by the SEC already from another source, except when the whistleblower is the original source because they first reported the information to the Department of Labor and Department of Justice, which provided the information to the SEC. The information can’t be exclusively derived from allegations made in government reports or judicial and administrative hearings unless the whistleblower is a source of the information. Independent knowledge must be facts that are not gotten from sources that are publicly available. The whistleblower might have observed the facts first-hand but can also get knowledge via experience or discussion.

How does Sarbanes-Oxley protect whistleblowers in Texas?

January 12, 2018 | Law Office of Rob Wiley, P.C.

The Sarbanes-Oxley Act of 2002 (Sarbanes Oxley) is a federal law that provides protection to those who work for publicly traded companies and who inform authorities about SEC regulation violations or federal law violations connected to fraud against corporate shareholders. The law prohibits retaliation, discrimination, or harassment in the workplace against Texas whistleblowers.

Retaliation is any adverse change to the whistleblower’s terms and conditions of employment, and it can include anything from a simple reprimand to termination or blackballing. It’s not just those who work directly for publicly traded companies who are protected, but also agencies, contractors, and subcontractors of publicly traded companies.

The law includes as protected whistleblower activity any reports sent to federal law enforcement and regulatory agencies about violations, as well as reports to a supervisor, investigators within the company, and Congress. Employees who testify or who are involved in regulatory proceedings and other shareholder fraud proceedings are also protected.