Federal Whistleblowers Often Face Risks of Employer Retaliation, Report Finds

A report from the U.S. Government Accountability Office (GAO) recently reviewed the diverse methods federal agencies employ to safeguard individuals who report potential waste, fraud, and abuse. The GAO’s findings indicate that while whistleblower tips are crucial for identifying misconduct, employees often face risks of employer retaliation and concerns about restrictive employment agreements that could deter them from coming forward.

The GAO report details that federal agencies utilize a range of mechanisms to both protect those who report wrongdoing and incentivize them to do so. These protections can include maintaining the confidentiality of individuals who provide information and, in some instances, offering monetary awards for disclosures that lead to financial recoveries. The agency also noted that some organizations’ non-disclosure agreements can be legally challenged if they contain language that hinders employees from reporting concerns to the government.

Examining specific federal agencies, the GAO found differing approaches to whistleblower protection and engagement. The Internal Revenue Service (IRS) and the Securities and Exchange Commission (SEC) both offer award programs for disclosures, with the IRS specifically providing confidentiality to those who come forward. The SEC also actively investigates instances of retaliation against whistleblowers. The Occupational Safety and Health Administration (OSHA) investigates retaliation and provides relief to victims, including reinstatement and financial compensation, and also offers confidentiality to certain non-complainant witnesses. The Federal Trade Commission (FTC) primarily provides confidentiality, though officials indicated that severe cases of retaliation could violate laws enforced by the agency.

Agency officials reported facing challenges in managing the volume of disclosures received from the public. These challenges can include the potential for a discloser’s identity to be revealed during subsequent investigative processes, although agencies generally discuss these risks with individuals before proceeding. Despite these hurdles, the benefits of these disclosures are significant. The GAO noted that enforcement actions by the FTC, SEC, and IRS, fueled by information from the public, have resulted in billions of dollars being collected and returned to the U.S. Treasury since 2019. Similarly, OSHA’s successful handling of retaliation cases has led to employees regaining their positions and receiving back pay, attorney fees, and compensatory damages.

The GAO’s study was prompted by concerns that private sector employment practices could negatively affect employees’ willingness to report illegal activities. The report aimed to investigate how non-disclosure agreements impact disclosures to federal agencies, examine the incentives and disincentives for employees reporting potential wrongdoing, and describe the mechanisms in place to enforce whistleblower protections. The GAO selected agencies for review based on their roles in providing protections against retaliation, taking action against restrictive non-disclosure agreements, or offering monetary rewards for disclosures. The analysis included a review of agency documents and testimony from four federal agencies and six organizations with direct experience in managing and receiving disclosures.

Article by Mel Anara, based upon information from the U.S. Government Accountability Office

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