Is Employee Retaliation Illegal?
Yes. In the United States, employee retaliation is illegal under federal laws such as the False Claims Act, the Sarbanes Oxley Act, and the Inspector General Act of 1978. These laws protect employees and other whistleblowers from being punished for exercising their rights, including reporting illegal activities, discrimination, or harassment. An employer who illegally retaliates can face civil penalties, undergo a compliance audit, and end up in litigation that can result in the employee being compensated and rewarded.
Types of Employee Retaliation
Employee retaliation can manifest in various forms, ranging from subtle changes in work assignments to outright termination. Common examples include demotions, reductions in pay, unfavorable changes to work schedules, or being passed over for a promotion. Even if the adverse action does not result in significant economic harm, if it would deter a reasonable person from reporting misconduct or participating in a protected activity, it may still constitute illegal retaliation.
For instance, if an employee files a complaint about unsafe working conditions, and the employer responds by transferring the employee to a less desirable position or isolating them from important projects, this could be considered retaliatory behavior. Similarly, if an employee is fired shortly after raising concerns about discriminatory practices within the company, this could also be grounds for a retaliation claim.
Real-Life Example of Employee Retaliation
A notable case involves Dr. Aaron Westrick, a former research director at a body armor company who blew the whistle on defective bulletproof vests sold to law enforcement agencies. After reporting the defects, which could potentially endanger lives, Westrick faced severe retaliation from his employer. He was demoted, isolated, and ultimately fired. Dr. Westrick filed a lawsuit under the False Claims Act, alleging retaliation. The case was ultimately settled, with the company agreeing to pay over $66 million in damages, and Dr. Westrick received a substantial whistleblower award for his efforts.
Whistleblower Protections Against Retaliation
Whistleblowers who expose wrongdoing within their organizations are particularly vulnerable to retaliation. However, federal laws provide robust protections to these individuals. Under the Whistleblower Protection Act and similar state laws, employees who report fraud, corruption, or other illegal activities are safeguarded against retaliatory actions. Employers found guilty of retaliation may be required to reinstate the employee, provide back pay, and cover any additional damages caused by the retaliatory behavior.
If you believe you are a victim of retaliation, it’s essential to document all relevant events and seek legal advice to protect your rights. Retaliation not only harms the individual employee but also undermines the integrity of the workplace, deterring others from reporting unlawful behavior.
