--- title: What Employers Need to Know About Whistleblowers and Retaliation Claims description: A whistleblower is protected under state and federal programs, making it a tricky situation for employers. Find how employers can avoid retaliation claims. image: https://blog.axcethr.com/hubfs/Stock%20images/Pensive%20businesswoman%20looking%20at%20a%20paper%20while%20working%20on%20her%20laptop%20at%20her%20desk.jpeg --- - [Client Portal](https://www.axcethr.com/client-services/) - [Employee Login](https://www.axcethr.com/client-services/) [![AxcetHR Solutions Blog](https://blog.axcethr.com/hubfs/AxcetHR2021%20Blog/axcethr_logo_white%20(1).png)](https://www.axcethr.com/) - [About Us](https://www.axcethr.com/about-us/) - [Corporate Philantropy](https://www.axcethr.com/about-us/corporate-philanthropy/) - [Meet the Team](https://www.axcethr.com/about-us/meet-the-team/) - [Values and Culture](https://www.axcethr.com/about-us/values-and-culture/) - [Kansas PEO](https://www.axcethr.com/about-us/kansas-peo/) - [Missouri PEO](https://www.axcethr.com/about-us/missouri-peo/) - [Careers](https://axcethrsolutions.prismhr-hire.com/) - [Why Axcet](https://www.axcethr.com/why-axcet/) - [Why Choose Axcet?](https://www.axcethr.com/why-axcet/) - 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[Employee Safety & Risk Management](https://blog.axcethr.com/topic/employee-safety-risk-management) - [Employee Benefits](https://blog.axcethr.com/topic/employee-benefits) - [All about COVID-19 in the Workplace](https://blog.axcethr.com/topic/covid19) - [Kansas & Missouri HR News](https://blog.axcethr.com/topic/kansas-and-missouri-hr-news) - [Kansas City Interest News](https://blog.axcethr.com/topic/kansas-city-interest-news) - [PEO/HRO](https://blog.axcethr.com/topic/peo) - Choose Topic: - [Human Resources](https://blog.axcethr.com/topic/human-resources) - Payroll Administrations - [Employee Safety & Risk Management](https://blog.axcethr.com/topic/employee-safety-risk-management) - [Employee Benefits](https://blog.axcethr.com/topic/employee-benefits) - [PEO](https://blog.axcethr.com/topic/peo) # What Employers Need to Know About Whistleblowers and Retaliation Claims By [Steve Donovan](https://blog.axcethr.com/author/steve-donovan) on [Feb 27, 2019](https://blog.axcethr.com/what-employers-need-to-know-about-whistleblowers-and-retaliation-claims) 4 min read [0 comment(s)](https://blog.axcethr.com/what-employers-need-to-know-about-whistleblowers-and-retaliation-claims#comments-listing) Share this: - - - - [whatsapp://send?text=https://blog.axcethr.com/what-employers-need-to-know-about-whistleblowers-and-retaliation-claims](whatsapp://send?text=https://blog.axcethr.com/what-employers-need-to-know-about-whistleblowers-and-retaliation-claims) - [mailto:?subject=What%20Employers%20Need%20to%20Know%20About%20Whistleblowers%20and%20Retaliation%20Claims&body=https://blog.axcethr.com/what-employers-need-to-know-about-whistleblowers-and-retaliation-claims](mailto:?subject=What%20Employers%20Need%20to%20Know%20About%20Whistleblowers%20and%20Retaliation%20Claims&body=https://blog.axcethr.com/what-employers-need-to-know-about-whistleblowers-and-retaliation-claims) ![What Employers Need to Know About Whistleblowers and Retaliation Claims](https://blog.axcethr.com/hs-fs/hubfs/Stock%20images/Pensive%20businesswoman%20looking%20at%20a%20paper%20while%20working%20on%20her%20laptop%20at%20her%20desk.jpeg?width=1000&name=Pensive%20businesswoman%20looking%20at%20a%20paper%20while%20working%20on%20her%20laptop%20at%20her%20desk.jpeg) Under the Securities and Exchange Commission’s current whistleblower program, a whistleblower who shares information that leads to an SEC enforcement action is awarded between 10 and 30 percent of the money the SEC recovers. Last summer, the SEC [proposed new rules](https://www.sec.gov/news/press-release/2018-120). While a whistleblower’s award under the new rules still would fall between 10 and 30 percent of the funds collected, the Commission would be permitted to cap any award that otherwise would pay the whistleblower more than $30 million. At the same time, the SEC would reserve the right to “adjust upwards any awards that would potentially be below $2 million to a single whistleblower.” The SEC also is considering redefining the term “whistleblower” to align with the U.S. Supreme Court’s opinion that legal protections do not cover employees who report suspected securities law violations to employers, but not to the SEC. ## Background The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, more commonly known as the Dodd-Frank Act, authorized the SEC to disburse awards as incentives for employees to expose employers’ illegal misconduct. It also forbade employers from retaliating against these so-called “whistleblowers.” Whistleblowers have enjoyed protections under the law since the days of President Lincoln, who signed the anti-fraud False Claims Act into law in 1862. And the U.S. Department of Labor reports that, since the passage of the Occupational Safety and Health Act in 1970, Congress has expanded OSHA’s whistleblower authority to protect workers from retaliation under 22 federal laws. Essentially, these laws prohibit an employer from taking ‘adverse action’ against workers who report injuries, safety concerns, unlawful discrimination, [harassment in the workplace,](https://blog.axcethr.com/harassment-in-the-workplace) fraud, and other protected activity. The DOL says any of the following employer actions toward whistle-blowing employees would be considered retaliatory if they were taken in response to the employee’s tips or complaints: - Firing or laying off - Blacklisting - Demoting - Denying overtime or promotion - Disciplining - Denying benefits - Failing to hire or rehire - Intimidating or harassing - Making threats - Reassigning the employee to a role that affects his or her prospects for promotion - Reducing pay or hours Workplace retaliation claims have nearly tripled over the last 10 years. Besides now being among the most frequent claims employees make against employers, these cases are notoriously difficult to defend in court. Employees who win their lawsuits against employers may be awarded lost pay, pain and suffering, punitive damages and attorneys’ fees and costs – all of which can add up to huge financial exposure for a small or medium-sized business. For the sake of their employees and their businesses, employers should do all they can to create a non-retaliatory workplace culture. [![New call-to-action](https://no-cache.hubspot.com/cta/default/2652187/848b2be4-259c-4248-a4bb-08daccc45b71.png)](https://cta-redirect.hubspot.com/cta/redirect/2652187/848b2be4-259c-4248-a4bb-08daccc45b71) ## Avoiding Retaliation Claims Once an employee makes a complaint – even if the complaint is without merit – he or she is in a protected category, especially when concerns involve [workplace harassment](https://blog.axcethr.com/harassment-in-the-workplace) or other employee relations issues that require careful handling. The most obvious way to mitigate the risk of retaliation lawsuits is, simply, not to retaliate. Treat employees who have complained the same way you treat any other employee. To encourage non-retaliation and foster a culture of compliance, follow these best practices:  1. Establish an ethics policy that: 1. - Clearly states the company’s intention to comply with all legal obligations, including anti-retaliation and whistleblower protection laws - Encourages employees to report misconduct - Includes a complaint reporting procedure – preferably one that allows employees to remain anonymous - Promises complaints will be thoroughly investigated - Assures employees whose identities are known that the company will not retaliate against anyone who complains in good faith 2. Train employees regularly on applicable laws. Provide additional information to managers about how to recognize the difference between a legitimate and a frivolous complaint and appropriately respond to whistleblower activity. 3. Document all employee performance and conduct problems that would justify future disciplinary actions or termination. This documentation becomes even more important if the employee in question has been or later becomes a whistleblower who could try to claim employer retaliation. 4. Promptly document and investigate any employee complaint, making it clear you’re taking the complaint seriously. As the investigation progresses, record the steps taken to resolve the complaint and the follow-up actions that have been or will be taken. When you clearly communicate to employees that neither illegal activity nor actions against whistleblowers will be tolerated, you reduce the legal risks and financial exposure that retaliation claims may pose. [![Axcet HR Solutions HR Consultant discuss quiet retaliation in the workplace](https://no-cache.hubspot.com/cta/default/2652187/interactive-217838560512.png)](https://blog.axcethr.com/hs/cta/wi/redirect?encryptedPayload=AVxigLJZd4zsXK3U5LVAUFBGVyRdjY%2FCy%2BSeiXxTu%2FHcTbmZ0CLJ4m2s%2BxpBYqghn3f%2BjFrBgd7GIt7n8h8QMZmEVWpjf7cVmFnKnq7WSApX6weAyz3xS1E%2BbogW0g1wYWTmDOqoIcRPkSkktpUo%2BzGEmDY%2BZ1Rn9MSLEbxM9of%2FX9pVh5Ooju8Kk64LiEXCFA%3D%3D&webInteractiveContentId=217838560512&portalId=2652187) ## **Protect Your Business by Prioritizing Compliance and Fairness** Whistleblower and retaliation claims can be costly—not just financially, but in terms of workplace culture and employee trust. Taking proactive steps to create a transparent, compliant, and supportive environment helps safeguard your company while fostering employee confidence. **Need expert guidance?** Axcet’s HR compliance professionals can help you implement policies and practices that reduce risk and support a healthy workplace. Learn more about our [HR compliance services](https://www.axcethr.com/services/human-resources/hr-compliance-services/). [![New call-to-action](https://no-cache.hubspot.com/cta/default/2652187/7e16d9f2-75c0-482f-ae6d-407aba0aa50a.png)](https://cta-redirect.hubspot.com/cta/redirect/2652187/7e16d9f2-75c0-482f-ae6d-407aba0aa50a) [![Steve Donovan](https://blog.axcethr.com/hs-fs/hubfs/Steve-10.jpg?width=80&height=80&name=Steve-10.jpg)](https://blog.axcethr.com/author/steve-donovan) Written by #### [Steve Donovan](https://blog.axcethr.com/author/steve-donovan) Director of Risk Management Read more [View all posts →](https://blog.axcethr.com/author/steve-donovan) ### Get HR Updates ### Table of Contents ### Related Resources - [services Human Resources](https://www.axcethr.com/services/human-resources/) - [services HR Compliance](https://www.axcethr.com/services/human-resources/hr-compliance-specialist/) - [services Risk Management](https://www.axcethr.com/services/workers-comp-and-employee-safety-risk-management/) #### [DOL to Announce Overtime Rule Changes This Year; Small Businesses May Pay More ![DOL to Announce Overtime Rule Changes This Year; Small Businesses May Pay More](https://blog.axcethr.com/hubfs/Stock%20images/Young%20design%20team%20having%20a%20meeting%20together%20in%20creative%20office.jpeg)](https://blog.axcethr.com/dol-to-announce-overtime-rule-changes-this-year-small-businesses-may-pay-more) #### [![Salary History Bans: Are They in the Near Future for Kansas City Private Employers?](https://blog.axcethr.com/hubfs/Stock%20images/Business%20people%20waiting%20to%20be%20called%20into%20interview%20at%20the%20office.jpeg) Salary History Bans: Are They in the Near Future for Kansas City Private Employers?](https://blog.axcethr.com/salary-history-bans-are-they-in-the-near-future-for-kansas-city-private-employers) ## Let us know what you think... ![AxcetHR Blog](https://blog.axcethr.com/hubfs/AxcetHR2021%20Blog/axcethr_logo_white%20(1).png) - [Why Axcet](https://www.axcethr.com/why-axcet/) - [What We Stand For](https://www.axcethr.com/about-us/what-we-stand-for/) - [Expertise](https://www.axcethr.com/expertise/) - [Employee Benefits](https://www.axcethr.com/services/employee-benefits/) - [Human Resources](https://www.axcethr.com/services/human-resources/) - [Payroll Services](https://www.axcethr.com/services/payroll-and-tax-administration-services/) - [Risk Management](https://www.axcethr.com/services/workers-comp-and-employee-safety-risk-management/) - [Meet the Team](https://www.axcethr.com/about-us/meet-the-team/) - [Subscribe to Latest Resources](https://www.axcethr.com/subscribe-to-the-latest-resources/) - [Resource Library](https://www.axcethr.com/expertise/resource-library/) - [\[ Client Portal \]](https://www.axcethr.com/client-services/) - - - - - Search for: Copyright © 2023 Axcet HR Solutions – Kansas City's PEO Since 1988 | [Privacy Policy](https://www.axcethr.com/privacy-policy/) | [Terms and Conditions](https://www.axcethr.com/terms-conditions/) | [**Join our Team – Careers »**](https://axcethrsolutions.prismhr-hire.com/) 10975 Grandview Drive Suite 200, Corporate Woods Building 27, Overland Park, KS 66210 | Call us: 913-383-2999 *The IRS does not endorse any particular For more information on [certified professional employer organizations](https://www.axcethr.com/why-axcet/certified-peo/), go to [www.irs.gov](https://www.irs.gov).* Remove cookies ![](https://dc.ads.linkedin.com/collect/?pid=43031&fmt=gif) ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Steve Donovan", "url" : "https://blog.axcethr.com/author/steve-donovan" }, "dateModified" : "2026-08-23T23:24:05.909Z", "datePublished" : "2019-02-27T19:24:38.000Z", "headline" : "What Employers Need to Know About Whistleblowers and Retaliation Claims", "image" : [ "https://blog.axcethr.com/hubfs/Stock%20images/Pensive%20businesswoman%20looking%20at%20a%20paper%20while%20working%20on%20her%20laptop%20at%20her%20desk.jpeg" ], "mainEntityOfPage" : { "@id" : "https://blog.axcethr.com/what-employers-need-to-know-about-whistleblowers-and-retaliation-claims", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://blog.axcethr.com/hubfs/_logo_axcethr_primary.png" }, "name" : "Axcet HR Solutions" } } ``` ```json { "@context" : "https://schema.org", "@id" : "https://www.axcethr.com/#organization", "@type" : "Organization", "address" : { "@type" : "PostalAddress", "addressCountry" : "US", "addressLocality" : "Kansas City", "addressRegion" : "MO" }, "aggregateRating" : { "@type" : "AggregateRating", "bestRating" : "5", "ratingValue" : "5", "reviewCount" : "100" }, "areaServed" : { "@type" : "Country", "name" : "United States" }, "award" : [ "IRS Certified Professional Employer Organization (CPEO)", "Award-Winning HR Solutions Provider", "SHRM Certified HR Professionals", "HRCI Certified HR Professionals" ], "contactPoint" : { "@type" : "ContactPoint", "areaServed" : "US", "availableLanguage" : "English", "contactType" : "Customer Service" }, "description" : "Award-winning Professional Employer Organization (PEO) providing comprehensive HR solutions, payroll services, employee benefits, and risk management to small and mid-sized businesses. 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Last summer, the SEC proposed new rules. While a whistleblower’s award under the new rules still would fall between 10 and 30 percent of the funds collected, the Commission would be permitted to cap any award that otherwise would pay the whistleblower more than $30 million. At the same time, the SEC would reserve the right to “adjust upwards any awards that would potentially be below $2 million to a single whistleblower.” The SEC also is considering redefining the term “whistleblower” to align with the U.S. Supreme Court’s opinion that legal protections do not cover employees who report suspected securities law violations to employers, but not to the SEC. Background The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, more commonly known as the Dodd-Frank Act, authorized the SEC to disburse awards as incentives for employees to expose employers’ illegal misconduct. It also forbade employers from retaliating against these so-called “whistleblowers.” Whistleblowers have enjoyed protections under the law since the days of President Lincoln, who signed the anti-fraud False Claims Act into law in 1862. And the U.S. Department of Labor reports that, since the passage of the Occupational Safety and Health Act in 1970, Congress has expanded OSHA’s whistleblower authority to protect workers from retaliation under 22 federal laws. Essentially, these laws prohibit an employer from taking ‘adverse action’ against workers who report injuries, safety concerns, unlawful discrimination, harassment in the workplace, fraud, and other protected activity. The DOL says any of the following employer actions toward whistle-blowing employees would be considered retaliatory if they were taken in response to the employee’s tips or complaints: Firing or laying off Blacklisting Demoting Denying overtime or promotion Disciplining Denying benefits Failing to hire or rehire Intimidating or harassing Making threats Reassigning the employee to a role that affects his or her prospects for promotion Reducing pay or hours Workplace retaliation claims have nearly tripled over the last 10 years. Besides now being among the most frequent claims employees make against employers, these cases are notoriously difficult to defend in court. Employees who win their lawsuits against employers may be awarded lost pay, pain and suffering, punitive damages and attorneys’ fees and costs – all of which can add up to huge financial exposure for a small or medium-sized business. For the sake of their employees and their businesses, employers should do all they can to create a non-retaliatory workplace culture. Avoiding Retaliation Claims Once an employee makes a complaint – even if the complaint is without merit – he or she is in a protected category, especially when concerns involve workplace harassment or other employee relations issues that require careful handling. The most obvious way to mitigate the risk of retaliation lawsuits is, simply, not to retaliate. Treat employees who have complained the same way you treat any other employee. To encourage non-retaliation and foster a culture of compliance, follow these best practices: 1. Establish an ethics policy that: Clearly states the company’s intention to comply with all legal obligations, including anti-retaliation and whistleblower protection laws Encourages employees to report misconduct Includes a complaint reporting procedure – preferably one that allows employees to remain anonymous Promises complaints will be thoroughly investigated Assures employees whose identities are known that the company will not retaliate against anyone who complains in good faith Train employees regularly on applicable laws. Provide additional information to managers about how to recognize the difference between a legitimate and a frivolous complaint and appropriately respond to whistleblower activity. Document all employee performance and conduct problems that would justify future disciplinary actions or termination. This documentation becomes even more important if the employee in question has been or later becomes a whistleblower who could try to claim employer retaliation. Promptly document and investigate any employee complaint, making it clear you’re taking the complaint seriously. As the investigation progresses, record the steps taken to resolve the complaint and the follow-up actions that have been or will be taken. When you clearly communicate to employees that neither illegal activity nor actions against whistleblowers will be tolerated, you reduce the legal risks and financial exposure that retaliation claims may pose. Protect Your Business by Prioritizing Compliance and Fairness Whistleblower and retaliation claims can be costly—not just financially, but in terms of workplace culture and employee trust. Taking proactive steps to create a transparent, compliant, and supportive environment helps safeguard your company while fostering employee confidence. Need expert guidance? Axcet’s HR compliance professionals can help you implement policies and practices that reduce risk and support a healthy workplace. Learn more about our HR compliance services.", "author" : { "@id" : "https://blog.axcethr.com/author/steve-donovan#author", "@type" : "Person", "name" : "Steve Donovan", "url" : "https://blog.axcethr.com/author/steve-donovan" }, "dateCreated" : "2019-02-27", "dateModified" : "2026-08-23", "datePublished" : "2019-02-27", "description" : "Under the Securities and Exchange Commission’s current whistleblower program, a whistleblower who shares information that leads to an SEC enforcement action is awarded between 10 and 30 percent of the money the SEC recovers. Last summer, the SEC proposed new rules. 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