Whistleblower Protection Laws: The Federal Programs Explained

Choosing the right statute is the first decision

People often assume there is a single whistleblower law. There is not. Which framework applies depends on what the conduct was and where the money came from, and the choice affects your award, your anonymity, and your deadline.

Some conduct qualifies under more than one program. Securities fraud at a company that also bills Medicare can support both an SEC submission and a False Claims Act case. Filing in the wrong place, or in the wrong order, can cost you.

The programs at a glance

These are the federal reward programs. Each is covered in its own guide.

• False Claims Act: fraud against any federal program. 15 to 30 percent. Filed under seal in federal court.
• SEC whistleblower program: securities fraud, accounting fraud, FCPA. 10 to 30 percent above a 1 million dollar sanction. Full anonymity through counsel.
• CFTC whistleblower program: commodities, derivatives, and swaps. 10 to 30 percent above the same threshold.
• IRS whistleblower program: tax underpayment. 15 to 30 percent where amounts in dispute exceed 2 million dollars.
• FIRREA: fraud affecting federally insured financial institutions. Declarations up to 1.6 million dollars.
• Motor Vehicle Safety Whistleblower Act: motor vehicle defects and safety reporting violations. Up to 30 percent.
• AMLA: money laundering and sanctions violations. Up to 30 percent.

Protection is separate from reward

Every program listed above pays an award. Protection against retaliation comes from a partly different set of provisions, and it is worth knowing which one covers you.

False Claims Act section 3730(h) protects those acting in furtherance of a qui tam case. Sarbanes-Oxley section 806 covers employees of public companies. Dodd-Frank protects those who report to the SEC. The Whistleblower Protection Act covers federal executive branch employees. More than twenty industry-specific statutes are administered by OSHA with much shorter deadlines.

State law adds another layer

Many states have their own false claims acts covering state money, most importantly the state share of Medicaid. New Jersey has one. Pennsylvania does not, which means Pennsylvania Medicaid cases proceed under the federal statute for the federal share alone.

Our attorney Ross Wolfe has publicly advocated for Pennsylvania to adopt a state false claims act. For matters spanning both states, filing under the federal statute and the New Jersey False Claims Act together captures more of the loss.