Whistleblowers play an important role in exposing unethical, illegal, or dangerous activities that governments, companies, and other organizations may want to keep hidden from public view. However, while there are laws in place to protect whistleblowers from retaliation, these laws do not provide absolute protection.
What protections do exist for whistleblowers?
In the United States, there are several key laws that provide protections for whistleblowers:
- The False Claims Act – Protects whistleblowers who report fraud against the government. Allows whistleblowers to file lawsuits on behalf of the government and receive a portion of any damages won.
- Dodd-Frank Wall Street Reform Act – Provides incentives and protections for whistleblowers who report securities fraud and other violations.
- Whistleblower Protection Act – Protects federal employees who disclose illegal or unethical activities.
- Sarbanes-Oxley Act – Protects employees at publicly traded companies who report securities fraud, wire fraud, bank fraud, or other violations.
- Occupational Safety and Health Act – Protects employees who report safety or health violations in the workplace.
In general, these laws aim to prohibit retaliation, protect whistleblowers’ identities, provide monetary incentives for whistleblowing, and establish legal remedies if retaliation does occur. Protections can include:
- Prohibiting termination or demotion
- Reinstatement of lost wages or benefits
- Compensation for attorney fees and other costs
However, there are still gaps in protection, as whistleblowers may still face:
Blacklisting
Even with anti-retaliation laws, whistleblowers may find it difficult to find new employment if they are labeled as a “problem employee.” Their former employer may refuse to provide a reference, or informally share negative information with others in the industry.
Reputational damage
Whistleblowers often face severe damage to their reputations, even if their charges are proven true. They may be labeled as disloyal, untrustworthy, or “snitches.” This reputational harm can negatively impact their careers for years.
Social or professional isolation
Colleagues, friends, and professional contacts may distance themselves from a whistleblower to avoid guilt by association. Whistleblowers may find themselves suddenly ignored or ostracized in their social and work circles.
Psychological stress
The act of whistleblowing and the ensuing retaliation can take a significant psychological toll. Stress, anxiety, depression, and other mental health issues are common among whistleblowers.
Financial loss
Despite protections, many whistleblowers endure substantial financial loss related to lost wages, benefits, pensions, and legal expenses. For example, a 2020 study found 40% of whistleblowers felt their financial compensation was inadequate.
Threats and harassment
Whistleblowers often face blatant threats or harassment, even though these actions are illegal. For example, threatening phone calls, online harassment, bullying, stalking, and physical assaults have been reported.
Lawsuits
Despite anti-retaliation laws, whistleblowers are sometimes sued for libel, defamation, or disclosing confidential information. Even if the suits fail, they take an emotional and financial toll.
Inadequate compensation
Some laws provide for a portion of recovered damages to be awarded to whistleblowers. However, compensation is often less than expected, takes years to receive, and may barely cover legal costs.
Limited legal resources
Whistleblower protection laws are only meaningful if whistleblowers have access to legal help to enforce those protections. But many whistleblowers lack the resources for extended legal battles against powerful employers.
Family stress and strife
The pressures of whistleblowing also affect family members, resulting in domestic stress, strife, divorce, and family division. Spouses and children can also face retaliation or harassment.
Media harassment
High profile whistleblowers often face intense media scrutiny and harassment. Their lives are examined under a microscope, with their backgrounds, credibility and mental health questioned.
Government harassment
Governments have many tools to legally harass whistleblowers, including tax audits, regulatory investigations, and excessive enforcement actions. For example, the IRS has been accused of unfairly targeting whistleblowers.
Criminal prosecution
Governments may charge whistleblowers with crimes for disclosing classified or confidential information. The charges are intended to discredit or silence whistleblowers. Recent examples include Edward Snowden, Chelsea Manning, and Julian Assange.
Conclusion
In summary, while protections exist on paper, the reality for whistleblowers is often quite difficult. Those who call out wrongdoing expose themselves to significant risks, including to their careers, reputations, finances, and even personal safety. While whistleblowing serves an important public function, those who pursue truth and justice continue to face harsh consequences from vested interests hoping to maintain the status quo. Stronger safeguards and support systems for whistleblowers are still needed to fully achieve the transparency and accountability they provide.