Founder & Managing Attorney
Blowing the whistle on workplace misconduct takes courage. Employees who expose unethical or illegal activities often face retaliation, from job loss to emotional distress. Thankfully, whistleblower laws protect private-sector employees from unfair treatment and provide a path to recover damages. If you’ve been wronged after reporting misconduct, you deserve to understand your rights and pursue the compensation you’re entitled to. At Solomon Law Firm, PLLC, we’re committed to helping whistleblowers hold employers accountable and secure the recovery they deserve.
Legal Protections for Private Sector Whistleblowers
Private sector whistleblowers are safeguarded by laws designed to protect their rights and ensure accountability for misconduct. The Sarbanes-Oxley Act (SOX) protects employees who report fraud or violations of securities laws within publicly traded companies. Under SOX, whistleblowers are shielded from retaliation, such as termination, demotion, or harassment, and can seek remedies such as reinstatement, back pay, and damages for emotional distress.
The Dodd-Frank Act further enhances protections by offering confidentiality to whistleblowers and providing financial rewards for those who report violations, leading to successful enforcement actions by the Securities and Exchange Commission (SEC).
These laws create a legal safety net, encouraging employees to report wrongdoing without fear of retaliation. If you’ve faced unfair treatment after exposing misconduct, understanding these protections can empower you to take action and seek justice.
What Damages Are Recoverable and How Are They Calculated in a Whistleblower Case?
When an employer retaliates against a whistleblower, the law provides remedies to address the harm caused. These damages fall into several categories and are calculated based on the unique losses and suffering you endured. Certain statutes also include incentive-based recovery, which provides whistleblowers, referred to as ”relators,” with a percentage that the government recovers against a company as a result of the whistleblowing. This recovery may be large. For example, the Department of Justice (DOJ) announced that in fiscal year (FY) 2024, it recovered over $2.9 billion in False Claims Act (FCA) cases.
Damages under the False Claims Act (FCA)
- The FCA holds individuals liable for submitting false claims to the government
- Whistleblowers are protected from retaliation by their employer
- Whistleblowers can receive a reward of 15–30% of the government’s recovery from a defendant.
Damages under the Dodd-Frank Act
- The SEC can take legal action against employers who retaliate against whistleblowers.
- Whistleblowers can receive a cash reward of 10–30% for reporting securities or commodities law violations, foreign bribery, or money laundering.
Economic Damages
Economic damages compensate for financial losses like lost wages, benefits, and future earnings. Courts calculate these damages from the date of retaliation—such as termination or demotion—until you secure comparable employment or resolve your case. Compensation often includes not just your salary but also lost benefits, such as healthcare, retirement contributions, and bonuses. If reinstatement to your position isn’t feasible, damages may account for the income you would have earned moving forward.
Emotional Distress Damages
Retaliation can cause significant emotional harm, including anxiety, depression, or reputational damage. Emotional distress damages are intended to address this suffering. Courts evaluate the severity and duration of your emotional harm, considering evidence such as therapist evaluations or testimonies from family and colleagues. These damages reflect the mental and emotional toll retaliation has had on your life.
Punitive Damages
If your employer’s conduct was malicious or reckless, punitive damages may apply. These are designed to punish egregious behavior and deter future retaliation. However, punitive damages are often capped based on state laws or the whistleblower statute under which your case is filed.
Attorney’s Fees and Costs
To ensure you can pursue justice without an undue financial burden, many whistleblower laws allow for the recovery of legal fees and court costs. These are typically awarded in addition to other damages.
Each case is unique, and the damages awarded will reflect your specific circumstances and the harm you’ve endured.
Factors That Affect Whistleblower Damages
The amount of damages awarded in a whistleblower case depends on various factors specific to the circumstances. Courts consider these elements when determining compensation:
- Severity of Retaliation: The type and intensity of retaliation, such as termination versus demotion, significantly impact the damages awarded. More severe actions often lead to higher compensation.
- Duration of Unemployment: If retaliation leads to prolonged unemployment, courts may increase economic damages to cover the extended loss of income and benefits.
- Employer’s Conduct: Malicious or egregious behavior by the employer can result in higher punitive damages to punish the misconduct and deter future retaliation.
- Whistleblower’s Credibility: Strong evidence and credible testimony from the whistleblower often result in more favorable outcomes and higher damages.
- Emotional Impact: The extent of emotional distress, supported by medical or personal testimony, can influence the award for emotional harm.
- Percentage of Government Recovery: percentages ranging from 10-30% of total Government recovery.
Contact Our Experienced Whistleblower Retaliation Attorneys
At Solomon Law Firm, we are dedicated to protecting whistleblowers and ensuring they receive the compensation they deserve. We’ll guide you through the legal process, help you build a strong case, and fight for your rights against employer retaliation. Your courage to speak out should be met with justice. Contact us today to schedule a consultation and take the first step toward holding your employer accountable.