Dallas Employment Lawyer Blog
Rachel Bethel Dallas
Trial Attorney
No one wants to discover that their employer is knowingly defrauding the government. That sounds frightening, both to discover it and to figure out what to do about it. You might feel torn between doing the right thing and protecting your livelihood. Fortunately, federal law provides a powerful tool for workers who take action and report fraud against taxpayer-funded programs.
The False Claims Act (FCA) is aimed at addressing fraud on the U.S. government, which is surprisingly rampant. It protects workers who blow the whistle as well.
Just this month, a Department of Justice press release announced that FCA “settlements and judgments . . . exceeded $6.8 billion in the fiscal year ending Sept. 30, 2025.”
This whopping amount of recuperated taxpayer money suggests that if you think you’re looking at fraudulent activity, you just might be onto something.
What does an FCA violation look like in the real world?
FCA violations commonly arise in healthcare spaces. Examples might look like a facility entering false diagnosis codes; billing for services not performed; upcoding; dispensing drugs without appropriate prescriptions; providing kickbacks tied to federally reimbursed care; or ordering medically unnecessary services.
In technology development or higher education, you might see grant and research funding fraud. This could be anything from misuse of grant funds to fabricating research data to falsifying progress reports.
For government defense or construction contracts, you might see the government defrauded with hours never worked, materials never supplied, cheaper materials substituted, or falsified quality certifications.
In military procurement fraud, you might see requests for reimbursement of false or inflated costs and pricing or the intentional passing on of excessive fees from subcontractors to the government for reimbursement.
But these are just a few examples. FCA violations can happen in all kinds of work environments.
The False Claims Act’s anti-retaliation provision protects employees, contractors, and agents if they are “discharged, demoted, suspended, threatened, harassed, or in any other manner discriminated against” for engaging in acts “in furtherance of” an FCA action or otherwise make efforts to stop violations of the FCA.
Acts considered “in furtherance of” an FCA action are jurisdiction-specific but generally require express reporting of violations with the objective of stopping them and escalating express concerns of the violation of law through the proper channels.
Notably, for Texas workers, without a showing of the employer’s “actual knowledge, deliberate ignorance, or reckless disregard” for the violations at issue, the worker’s FCA report is insufficient. See U.S. ex rel. Johnson v. Kaner Medical Group, 641 Fed. Appx. 391, 394–395 (5th Cir. 2016).
Workers might also consider keeping a private log with dates on which unlawful conduct occurred; the names of those involved; the false claims submitted; and/or the certifications that were false.
Once FCA violations are reported through the proper channels, be on the lookout for retaliation. This will include any run of the mill retaliatory acts, such as sudden, inexplicably negative performance reviews or performance improvement plans, loss of title, loss of scope, demotion, or even termination.
If you suspect that unlawful misconduct is afoot, it’s important to consult with a Texas employment lawyer promptly. We can provide valuable guidance on what to do in order to protect yourself while ensuring that your workplace concerns are dealt with properly.