How to Survive the Whistleblower Epidemic

Whistleblowers Affect All Employers

In August 2012, the Securities and Exchange Commission (SEC) made its first award to an anonymous whistleblower under the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act). And now with the money starting to flow, the number of whistleblowers, or purported whistleblowers, is destined to increase. Although the Dodd-Frank Act is receiving the most media attention, it is not the only act providing whistleblower protection. Other statutes, both state and federal (including the False Claims Act), provide bounties or cash rewards (similar to those provided by the Dodd-Frank Act) for employees who report violations. Aside from the bounties or cash rewards that whistleblowers can pursue, the threat of a retaliation claim against the employer often provides the whistleblower with an added layer of protection from discipline and termination. Regardless of whether an employer is publicly traded or subject to the Dodd-Frank Act, the media attention on whistleblowing and the public awareness created by the statute has increased the whistleblower pressure in all employment settings.