False Claims Act Retaliation & Your Rights

Reporting workplace fraud can feel intimidating, but legal protections are in place to shield employees from retaliation. In some cases, unethical employers attempting to protect themselves may retaliate against whistleblowers by firing them, demoting them, or taking other punitive actions in response to their efforts to expose misconduct.

If the reported misconduct involves a fraudulent payment claim submitted to the federal government, it likely falls under the scope of the False Claims Act Retaliation.

The False Claims Act and Your Rights as an Employee

The False Claims Act aims to prevent fraud against the federal government by targeting businesses and individuals who submit false or deceptive claims for payment. It imposes strict civil penalties on those who knowingly engage in fraudulent activities, ensuring accountability and protecting public funds.

The definition of the False Claims Act includes provisions that allow the government to pursue treble damages and monetary penalties against violators. The law permits the Department of Justice to seek treble damages and impose financial penalties adjusted for inflation.

Under the federal False Claims Act, a citizen may act on behalf of the government by filing a qui tam lawsuit against those who defraud it. If the lawsuit succeeds, the whistleblower may receive a portion of the recovered funds as a reward for their efforts.

When Was the False Claims Act Enacted?

The False Claims Act has a long history in the United States, dating back to its enactment in 1863. It was introduced to combat fraud by corrupt defense contractors who submitted false claims for payment. At the time, those found guilty were required to pay double the damages incurred by the government, along with a $2,000 penalty.

In 1986, Congress strengthened the FCA by introducing incentives to encourage whistleblowers to step forward. That year, the qui tam provisions were added, paving the way for thousands of lawsuits. These cases have since resulted in substantial monetary settlements and judgments, enhancing the law’s impact.

The Department of Justice (DOJ) continues to utilize the False Claims Act (FCA) as a vital instrument in combating fraud. In the fiscal year ending September 30, 2024, the DOJ secured over $2.9 billion in settlements and judgments related to FCA cases. Notably, whistleblowers filed 979 qui tam lawsuits during this period—the highest number recorded in a fiscal year—underscoring their pivotal role in unveiling fraudulent activities.

Are Whistleblowers Protected Under the False Claims Act?

Yes, the FCA offers strong protections for whistleblowers and defines whistleblowers broadly. Under both statutory and case law, individuals such as employees, contractors, partners, and other agents of a company are safeguarded when reporting misconduct. This expansive protection highlights the federal government’s commitment to encouraging individuals to expose false claims, ensuring accountability and integrity in its dealings.

When whistleblowers come forward, employers may retaliate to hide misconduct and manage potential fallout. Retaliation can take many forms, including denial of promotions, wrongful termination, or other adverse employment actions. Without federal protections, whistleblowers would have little incentive to expose fraudulent claims or unethical practices. 

Liability for False Claims Act violations can be applied to individuals and companies that knowingly submit false claims, cause fraudulent claims, or conspire to defraud the federal government. The False Claims Act holds violators accountable through substantial financial penalties and potential legal consequences, reinforcing the importance of whistleblower protections in preventing fraud.

Imagine a healthcare worker at a hospital or clinic noticing their facility performing redundant tests. They decide to report this to a supervisor. However, the employee could face serious repercussions if the supervisor is complicit in a fraudulent billing scheme. The supervisor might retaliate by reassigning them to less desirable tasks, gradually removing them from the schedule, or overlooking them for promotions.

Whistleblowers play a crucial role in exposing employer violations under the False Claims Act (FCA) and need protection and motivation to come forward. Thankfully, the FCA provides these safeguards. An experienced Wenzel Fenton Cabassa FCA retaliation attorney can assist whistleblowers in seeking damages for retaliation and represent them in qui tam lawsuits, ensuring their rights are upheld and their voices are heard.

False Claims Act Retaliation Provision

The FCA safeguards whistleblowers from retaliation when they report, investigate, or work to prevent fraud against the United States government. Acts of retaliation against whistleblowers can take many forms, including but not limited to the following:

• Termination soon after reporting fraud may help prove retaliation.
• A demotion that follows shortly after a complaint—and includes lower pay or status—may indicate retaliation.
• Suspension for unreasonable or unstated reasons
• Cutting an employee’s hours after a complaint can signal retaliation

When filing a lawsuit against an employer for such actions, the FCA permits individuals to pursue compensation for the following types of damages:

• Back pay plus interest and liquidated damages
• Compensation for litigation costs and attorneys’ fees

To succeed in an FCA claim for damages, there are several conditions that a plaintiff must fulfill. The mere claim of loss is not enough. According to the statute, whistleblowers seeking compensation are required to prove three conditions:

• The whistleblower engaged in activity that was protected under the FCA
• The employer was aware of the whistleblower engaging in protected action
• The employer retaliated against the whistleblower because of said activity

The FCA protects actions to uncover or stop fraudulent activities against the federal government. However, if the fraud does not target the federal government, these protections do not apply.

Specific types of protected actions that whistleblowers take might include:

• Filing a qui tam lawsuit
• Opposing or reporting bid-rigging
• Reporting the failure to follow good manufacturing practices
• Opposing or reporting kickback payments
• Opposing or writing defective products being sold to the US government
• Opposing or reporting double-billing

To file a claim, the plaintiff must demonstrate when and how they notified their employer, providing evidence to substantiate the fraudulent activity. Interestingly, it may not be necessary to explicitly use terms like “fraud” or “illegal” in their notification.

To establish retaliation, the whistleblower must show that the employer took adverse action specifically because they engaged in a protected activity. In other words, there must be a clear connection between the whistleblower’s protected actions and the employer’s retaliatory behavior. However, proving this link can often be challenging.

Whistleblowers have two legal avenues when they reasonably suspect an employer is defrauding the U.S. government. First, they can file a lawsuit to address the damages they suffered from retaliation for engaging in protected whistleblowing activities. Second, they can pursue a qui tam lawsuit on behalf of the federal government, seeking accountability for the alleged fraud.

When you contact an FCA attorney, they will evaluate the details of your case and determine the best course of action. Retaliation lawsuits and qui tam cases can lead to substantial settlement awards or verdicts, though results may vary depending on your particular facts and legal circumstances.

Retaliation lawsuits allow whistleblowers to pursue damages for adverse actions they may have experienced. In qui tam cases, whistleblowers are entitled to a percentage of the funds recovered on behalf of the federal government. The exact rate depends on whether the U.S. government intervenes in the qui tam action.

Whistleblowers receive a more significant award percentage if their case moves forward without government involvement. Depending on the specifics, payouts typically range from 15% to 30%.

Courts determine a whistleblower’s share based on the total amount recovered, not the amount the government initially lost. Since the government can seek up to three times its losses, whistleblowers often stand to receive significant compensation for filing claims on behalf of the federal government. Results may vary depending on your particular facts and legal circumstances.

Whistleblowers who participated in the fraud may still file a qui tam lawsuit under the False Claims Act. Still, their involvement can affect the outcome, particularly their eligibility for a financial reward. Additionally, these claims are barred if the government or another party is already pursuing qui tam legal action regarding the same fraudulent conduct.

If you suspect your employer is defrauding the U.S. government, acting quickly is essential to preserve your rights. Contact a Wenzel Fenton Cabassa lawyer to explore your options and safeguard your case.

Key Elements of a Successful FCA Retaliation Case

Several key elements must be fulfilled to bring a False Claims Act (FCA) retaliation case. These elements include:

1. Engaging in protected activity: The first element of an FCA retaliation case is demonstrating that the whistleblower is involved in an activity protected under the FCA. This can include filing a qui tam lawsuit or reporting fraudulent activities against the federal government.
2. Employer awareness: The second element requires showing that the employer was aware of the whistleblower engaging in protected activity. If an employer takes retaliatory action but is unaware of the employee’s whistleblowing activities, there may not be a viable FCA case, though there are exceptions.
3. Retaliation: The final key element is proving that the employer retaliated against the whistleblower because of their protected activity. This can be challenging and requires substantial evidence to show a direct connection between the protected activity and the retaliation.

In addition to these key elements, it is also essential for whistleblowers to act quickly when they suspect fraud against the government and to seek legal counsel from an experienced Wenzel Fenton Cabassa FCA attorney. Doing so can help preserve their claims and increase their chances of success in seeking damages or receiving some recovered funds in qui tam cases. However, results may vary depending on your particular facts and legal circumstances.

Filing a False Claims Act Retaliation Claim

False Claims Act (FCA) retaliation claims involve specific legal procedures that vary by jurisdiction. These claims typically include preparing a detailed complaint, notifying the appropriate agencies (especially in qui tam cases), and presenting evidence of the fraud and the resulting retaliation.

Because of the complexity and legal sensitivity involved, it’s critical to work with an experienced Wenzel Fenton Cabassa FCA attorney who can protect your rights and help guide you through the process. At Wenzel Fenton Cabassa, P.A., we support whistleblowers every step of the way, from investigating the claim to pursuing justice in court.

Damages Available in False Claims Act Retaliation Cases

If a False Claims Act retaliation case succeeds, the plaintiff may be entitled to various damages. These can include:

• Back pay: This includes lost wages and benefits that the whistleblower would have earned had they not been retaliated against.
• Front pay: If the whistleblower cannot return to their previous position due to continued retaliation or hostility from their employer, they may be awarded front pay for future lost earnings.
• Compensatory damages: These may cover emotional distress, harm to reputation, and other non-economic losses resulting from the retaliation.
• Attorney’s fees and court costs: In most cases, the prevailing party in an FCA retaliation case is entitled to have their attorney’s fees and court costs paid for by the losing party.
• Damages under qui tam lawsuits: Whistleblowers who pursue a qui tam lawsuit on behalf of the federal government may also be entitled to a percentage of the funds recovered in the case.

Understanding the key elements of an FCA retaliation case, following proper procedures, and seeking experienced legal counsel are crucial for success. Whistleblowers play an essential role in protecting taxpayer dollars and holding fraudulent employers accountable, and taking action against retaliation is critical to maintaining this vital system. As always, results may vary depending on your particular facts and legal circumstances.

False Claims Act Retaliation: Statute of Limitations

One of the key components of the False Claims Act (FCA) is its statute of limitations, which sets strict deadlines for filing legal actions. These timeframes apply to the government and qui tam whistleblowers seeking to address fraudulent activity.

Under the FCA, lawsuits must generally be filed within six years of the fraudulent act. However, if the fraud is discovered later, the timeframe is shortened to three years from the date when the fraud was or reasonably should have been uncovered by a U.S. official responsible for addressing such claims. Regardless of the circumstances, no lawsuit can be filed more than ten years after the fraudulent act occurred.

This limited window underscores the importance of acting swiftly when uncovering FCA violations. Whistleblowers who delay beyond the statute of limitations lose their right to file a claim and forfeit any potential monetary rewards or damages tied to the case. Acting promptly is crucial to ensure justice is pursued effectively.

Importance of a False Claims Act Retaliation Attorney

If you have experienced retaliation under the False Claims Act (FCA) or the Florida fraud statute, it’s crucial to have an experienced attorney by your side, one with a proven track record in handling such cases. The FCA is a highly complex law with strict procedural and substantive requirements that leave little room for error. By working with a skilled Wenzel Fenton Cabassa retaliation attorney, you’ll have a trusted advocate to help you navigate the process. While no case is simple, you can have confidence that your concerns will be treated with care and attention, and that you’ll have the guidance needed to pursue the best possible outcome. 

If your FCA lawsuit is against an employer, you can count on the defense having skilled attorneys ready to challenge your case. You deserve aggressive, dedicated representation. With a valid whistleblower claim, your attorney will dedicate themselves to building a compelling case. This involves gathering robust evidence, negotiating with the defense, and, if needed, advocating for you in court.

At Wenzel Fenton Cabassa, P.A., we stand up for employee rights and guide clients through complex workplace challenges with respect, discretion, and determination. Regarding FCA retaliation cases, our deep understanding of how violations occur and our extensive experience advocating for whistleblowers have solidified our reputation as skilled and compassionate employment attorneys.

If you’ve faced retaliation, contact our office today for a free case evaluation. We’ll discuss how we can help you seek justice and explore the possibility of representing you in a qui tam lawsuit. Take the first step toward protecting your rights. Contact us today.