Can I Report My Employer Anonymously?
Partly. A False Claims Act case is filed under seal, so your employer is not told while the government investigates, typically one to three years. Your name becomes known if the case proceeds. Securities and Exchange Commission and Internal Revenue Service programs allow you to stay anonymous throughout if an attorney files for you.
What the seal does
When a qui tam complaint is filed it goes to the court and to the Department of Justice under seal. The defendant is not served and is not notified. The seal runs at least 60 days and is extended, often repeatedly, while the government investigates.
During that time you continue working normally. Your employer does not know a case exists, which means there is nothing to retaliate against and no basis for anyone to connect an investigation to you.
When the seal lifts
Eventually the seal is lifted and the complaint is served. If the case settles before that point, which happens, your identity may never become public. If the case proceeds in litigation your name appears as the relator.
This is the honest limit of False Claims Act confidentiality. Anyone who tells you a qui tam case can be kept anonymous permanently is overselling it.
The programs that do allow full anonymity
The Securities and Exchange Commission, the Commodity Futures Trading Commission, and the Internal Revenue Service run award programs separate from the False Claims Act. If you submit through an attorney, you can remain anonymous to the agency and to the company, including at the point the award is paid.
Which framework fits depends on the conduct. Securities and accounting fraud generally goes to the SEC. Fraud against a federal healthcare or contracting program generally goes through the False Claims Act. Some conduct qualifies under more than one.
The protection that matters more than anonymity
Most people asking about anonymity are really asking whether they will lose their job. The statute answers that directly. Section 3730(h) protects an employee who is discharged, demoted, suspended, threatened, or harassed for lawful acts in furtherance of a case.
Remedies include reinstatement with seniority, two times back pay with interest, and compensation for special damages including attorney fees. In practice, retaliation claims are often the faster and larger recovery.
What to do before you report
A few decisions early on materially affect both your protection and the strength of the case.
- Do not take documents you are not authorized to access, and speak to counsel about what you may keep
- Do not discuss the matter with coworkers, which is the most common way a case gets exposed
- Write down dates, names, and specifics while your memory is current
- Understand that an NDA cannot lawfully stop you from reporting fraud to the government
- Speak to a whistleblower attorney before reporting internally, because internal reporting starts a clock and can expose you
Frequently asked questions
Can my employer find out I filed?
Not during the seal period. Once the seal lifts and the case proceeds, your identity as relator becomes known. If the matter resolves under seal, it may not.
My NDA says I cannot disclose company information. Does that stop me?
No. Confidentiality agreements cannot lawfully prevent you from reporting suspected violations of law to the government. Provisions attempting to do so are unenforceable, and the SEC has penalized employers for using them.
What if I have a security clearance?
Reporting fraud through lawful channels does not endanger a clearance. Handling classified material improperly does. If your information touches classified programs, tell your attorney at the first conversation so the disclosure is structured correctly.
Should I report internally first?
Sometimes, but not automatically. Internal reporting can strengthen your account and can also alert the company and expose you before you have protection. This is worth one conversation with counsel before you act.
The attorneys who handle these cases
Related reading
Talk to a whistleblower attorney before you report
A conversation costs nothing and is confidential. We will tell you honestly whether what you have describes a case, and what the first-to-file rule means for your timing.