Protections and Rewards for Whistleblowers

Under the False Claims Act a whistleblower is entitled to both protection and monetary rewards in exchange for bringing forward original information that leads to a successful recovery of government funds.

Protection:

Whistleblowers are legally protected from retaliation by an employer or former employer. While the case is being investigated, the identity of the whistleblower is held confidential and the case is kept under seal.

If the company deduces the identity of a whistleblower, the False Claims Act contains a provision which states that if a whistleblower is “discharged, demoted, suspended, threatened, harassed, or in any other manner discriminated against in the terms and conditions of employment” after blowing the whistle, they are eligible for reinstatement, doubled back-pay and compensation for any other damages.

Rewards:

The monetary reward that a whistleblower is entitled to varies depending on the program under which the lawsuit was filed.

• Commodities Futures Trading Commission (CFTC): The CFTC whistleblower program entitles a whistleblower to between 10 and 30 percent of any funds in excess of $1 million resulting from an enforcement action stemming from original information provided by the whistleblower.
• Securities Exchange Commission (SEC): Under the new program, when a whistleblower brings original information to the SEC about violations that lead to fines or other enforcement actions in excess of $1 million, that person is entitled to between 10 and 30 percent of the total recovered.
• Internal Revenue Service (IRS): The IRS Whistleblower Program provides an incentive between 15 and 30 percent of any recovery that exceeds $2 million.

The amount may be dependent on the whistleblower’s contribution to the case. If the government declines to intervene in a whistleblower’s case then the whistleblower can choose to proceed independently with the case, usually leading to a higher reward.