A
whistleblower (
whistle-blower or
whistle blower)
[1] is a person who tells the public or someone in authority about alleged dishonest or illegal activities (
misconduct)
occurring in a government department or private company or
organization. The alleged misconduct may be classified in many ways; for
example, a violation of a
law, rule, regulation and/or a direct threat to
public interest, such as
fraud, health/safety violations, and
corruption.
Whistleblowers may make their allegations internally (for example, to
other people within the accused organization) or externally (to
regulators, law enforcement agencies, to the media or to groups
concerned with the issues).
One of the first laws that protected whistleblowers was the 1863 United States
False Claims Act (revised in 1986), which tried to combat fraud by suppliers of the United States government during the
Civil War.
The act encourages whistleblowers by promising them a percentage of the
money recovered or damages won by the government and protects them from
wrongful dismissal.
[2]
Whistleblowers frequently face
reprisal,
sometimes at the hands of the organization or group which they have
accused, sometimes from related organizations, and sometimes under law.
Questions about the legitimacy of whistle blowing, the moral
responsibility of whistle blowing, and the appraisal of the institutions
of whistle blowing are part of the field of
political ethics.
Origin of term
The term
whistle-blower comes from the
whistle a referee uses to indicate an illegal or foul play.
[3][4] US civic activist
Ralph Nader
coined the phrase in the early 1970s to avoid the negative connotations
found in other words such as "informers" and "snitches".
[5]
Definition
Most whistleblowers are
internal whistleblowers, who report
misconduct on a fellow employee or superior within their company. One of
the most interesting questions with respect to internal whistleblowers
is why and under what circumstances people will either act on the spot
to stop illegal and otherwise unacceptable behavior or report it.
[6]
There is some reason to believe that people are more likely to take
action with respect to unacceptable behavior, within an organization, if
there are
complaint systems that offer not just options dictated by the planning and control organization, but a
choice of options for absolute confidentiality.
[7]
External whistleblowers, however, report misconduct on outside
persons or entities. In these cases, depending on the information's
severity and nature, whistleblowers may report the misconduct to
lawyers, the
media,
law enforcement or
watchdog agencies, or other local, state, or federal agencies. In some cases, external whistleblowing is encouraged by offering monetary reward.
Under most US federal whistleblower statutes, in order to be
considered a whistleblower, the federal employee must have reason to
believe his or her employer has violated some law, rule or regulation;
testify or commence a legal proceeding on the legally protected matter;
or refuse to violate the law.
In cases where whistleblowing on a specified topic is protected by
statute, US courts have generally held that such whistleblowers are
protected from retaliation.
[8] However, a closely divided
US Supreme Court decision,
Garcetti v. Ceballos (2006) held that the
First Amendment free speech guarantees for government employees do not protect disclosures made within the scope of the employees' duties.
Common reactions
Ideas about whistleblowing vary widely. Whistleblowers are commonly seen as selfless
martyrs for public interest and organizational
accountability; others view them as "tattle tales" or "snitches," solely pursuing personal glory and fame. Some academics (such as
Thomas Alured Faunce)
feel that whistleblowers should at least be entitled to a rebuttable
presumption that they are attempting to apply ethical principles in the
face of obstacles and that whistleblowing would be more respected in
governance systems if it had a firmer academic basis in
virtue ethics.
[9][10]
It is probable that many people do not even consider blowing the
whistle, not only because of fear of retaliation, but also because of
fear of losing their relationships at work and outside work.
[11]
Because the majority of cases are very low-profile and receive little
or no media attention and because whistleblowers who do report
significant misconduct are usually put in some form of danger or
persecution, the idea of seeking fame and glory may be less commonly believed.
[citation needed]
Persecution of whistleblowers has become a serious issue in
many parts of the world. Although whistleblowers are often protected
under law from employer retaliation, there have been many cases where
punishment for whistleblowing has occurred, such as
termination,
suspension,
demotion,
wage garnishment, and/or harsh
mistreatment
by other employees. For example, in the United States, most
whistleblower protection laws provide for limited "make whole" remedies
or damages for employment losses if whistleblower retaliation is proven.
However, many whistleblowers report there exists a widespread "
shoot the messenger"
mentality by corporations or government agencies accused of misconduct
and in some cases whistleblowers have been subjected to criminal
prosecution in reprisal for reporting wrongdoing.
As a reaction to this many private organizations have formed whistleblower
legal defense funds or support groups to assist whistleblowers; two such examples are the
National Whistleblowers Center[12] in the
United States and
Public Concern at Work[13] in the
UK.
Depending on the circumstances, it is not uncommon for whistleblowers
to be ostracized by their co-workers, discriminated against by future
potential employers, or even fired from their organization. This
campaign directed at whistleblowers with the goal of eliminating them
from the organization is referred to as
mobbing. It is an extreme form of
workplace bullying wherein the group is set against the targeted individual.
Legal protection
Legal protection for whistleblowing varies from country to country
and may depend on any of the country of the original activity, where and
how secrets were revealed, and how they eventually became published or
publicized. Over a dozen countries have now adopted comprehensive
whistleblower protection laws which create mechanisms for reporting,
investigate reports, and provide legal protections to the people who
informed them. Over 50 countries have adopted more limited protections
as part of their anti-corruption, freedom of information, or employment
laws.
[14] For
purposes of the English Wikipedia, this section emphasizes the
English-speaking world and covers other regimes only insofar as they
represent exceptionally greater or lesser protections.
USA
Whistleblowing in the U.S. is affected by a complex patchwork of contradictory laws.
In the United States, legal protections vary according to the subject
matter of the whistleblowing, and sometimes the state in which the case
arises.
[15] In passing the 2002
Sarbanes–Oxley Act,
the Senate Judiciary Committee found that whistleblower protections
were dependent on the "patchwork and vagaries" of varying state
statutes.
[16]
Still, a wide variety of federal and state laws protect employees who
call attention to violations, help with enforcement proceedings, or
refuse to obey unlawful directions.
The first US law adopted specifically to protect whistleblowers was
the 1863 United States False Claims Act (revised in 1986), which tried
to combat fraud by suppliers of the United States government during the
Civil War. The act encourages whistleblowers by promising them a
percentage of the money recovered or damages won by the government and
protects them from wrongful dismissal.
[2]
Another US law that specifically protects whistleblowers is the
Lloyd – La Follette Act of 1912. It guaranteed the right of federal employees to furnish information to the
United States Congress. The first US environmental law to include an employee protection was the
Clean Water Act of 1972. Similar protections were included in subsequent federal environmental laws, including the
Safe Drinking Water Act (1974),
Resource Conservation and Recovery Act (1976),
Toxic Substances Control Act of 1976,
Energy Reorganization Act of 1974 (through 1978 amendment to protect nuclear whistleblowers),
Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA, or the Superfund Law) (1980), and the
Clean Air Act (1990). Similar employee protections enforced through OSHA are included in the
Surface Transportation Assistance Act (1982) to protect truck drivers, the Pipeline Safety Improvement Act (PSIA) of 2002, the
Wendell H. Ford Aviation Investment and Reform Act for the 21st Century ("AIR 21"), and the Sarbanes–Oxley Act, enacted on July 30, 2002 (for corporate fraud whistleblowers).
Investigation of retaliation against whistleblowers under 20 federal
statutes falls under the jurisdiction of the Office of the Whistleblower
Protection Program
[17] of the
United States Department of Labor's[18] Occupational Safety and Health Administration (OSHA).
[19]
New whistleblower statutes enacted by Congress which are to be enforced
by the Secretary of Labor are generally delegated by a Secretary's
Order
[20] to OSHA's
Office of the Whistleblower Protection Program (OWPP).
The patchwork of laws means that victims of retaliation need to be
alert to the laws at issue to determine the deadlines and means for
making proper complaints. Some deadlines are as short as 10 days (for
Arizona State Employees to file a "Prohibited Personnel Practice"
Complaint before the Arizona State Personnel Board; and Ohio public
employees to file appeals with the State Personnel Board of Review). It
is 30 days for environmental whistleblowers to make a written complaint
to the Occupational Safety and Health Administration (OSHA). Federal
employees complaining of discrimination, retaliation or other violations
of the civil rights laws have 45 days to make a written complaint to
their agency's equal employment opportunity (EEO) officer. Airline
workers and corporate fraud whistleblowers have 90 days to make their
complaint to OSHA. Nuclear whistleblowers and truck drivers have 180
days to make complaints to OSHA. Victims of retaliation against union
organizing and other concerted activities to improve working conditions
have six months to make complaints to the
National Labor Relations Board (NLRB). Private sector employees have either 180 or 300 days to make complaints to the federal
Equal Employment Opportunity Commission
(depending on whether their state has a "deferral" agency) for
discrimination claims on the basis of race, gender, age, national origin
or religion. Those who face retaliation for seeking minimum wages or
overtime have either two or three years to file a civil lawsuit,
depending on whether the court finds the violation was "willful."
Those who report a false claim against the federal government, and
suffer adverse employment actions as a result, may have up to six years
(depending on state law) to file a civil suit for remedies under the US
False Claims Act (FCA).
[21] Under a
qui tam
provision, the "original source" for the report may be entitled to a
percentage of what the government recovers from the offenders. However,
the "original source" must also be the first to file a federal civil
complaint for recovery of the federal funds fraudulently obtained, and
must avoid publicizing the claim of fraud until the
US Justice Department decides whether to prosecute the claim itself. Such
qui tam
lawsuits must be filed under seal, using special procedures to keep the
claim from becoming public until the federal government makes its
decision on direct prosecution.
Federal employees could benefit from the Whistleblower Protection Act,
[22] and the
No-FEAR Act
(which made individual agencies directly responsible for the economic
sanctions of unlawful retaliation). Federal protections are enhanced in
those few cases where the
Office of Special Counsel
will support the whistleblower's appeal to the Merit Systems Protection
Board (MSPB). The MSPB rejects the vast majority of whistleblower
appeals, however, as does the Federal Circuit Court of Appeals.
[23]
Efforts to strengthen the law have met with failure in recent years,
but minor reforms seem likely. See, e.g.,Whistleblower Protection
Enhancement Act of 2011, S. 743, H. Rep. 3289, 112th Cong. (2011).
Wall Street
A woman protesting the state of protections for whistleblowers of banking fraud at the
Occupy Wall Street rally, September 17, 2011
Securities whistleblowers are provided incentives and protection by the
Dodd–Frank Wall Street Reform and Consumer Protection Act (2010).
[24]
The Dodd-Frank Act offers whistleblowers significant incentives and
increases protection for whistleblowers in the SEC whistleblower
program. This legislation authorizes the SEC to reward those who provide
information concerning violations of the federal securities laws at
companies that are required to report to the SEC.
Further, the Dodd-Frank Act strengthens the whistleblower protection
provisions of the False Claims Act, and contains one of the strongest
confidentiality provisions for whistleblowers ever enacted. For the
first time, whistleblowers will be allowed to initially report fraud
anonymously by filing a claim through an attorney.
Additionally, the law prohibits employers from retaliating against
whistleblowers. Employers may not fire, demote, suspend, threaten,
harass, or discriminate against a whistleblower. The Dodd-Frank Act
expands the reach of whistleblower protections provided under the
Sarbanes-Oxley Act of 2002 to include employees of public companies as
well as employees of its private subsidiaries and affiliates.
Whistleblowers who suffer from employment retaliation may sue for
reinstatement, back pay, and any other damages incurred.
US military
The Military Whistleblower Protection Act
[25]
protects the right of members of the armed services to communicate with
any member of Congress (even if copies of the communication are sent to
others).
US law enforcement
Frank Serpico and Michael Dowd were two better known whistleblowers in the
NYPD during the respective early 1970s (
Knapp Commission),Michael Dowd in the early/mid 1990s (
Mollen Commission) and
Theodore Briseno in the
LAPD in the early 1990s during his involvement in
Rodney King's
beating. Serpico was shot in 1971 during a drug raid that his
colleagues failed to cover him on. Serpico survived, although partially
deaf, testified to the Knapp Commission later that year and retired in
1972 on a
disability pension, living abroad until his quiet return to the U.S. in 1980, when he moved
upstate
into an old fashioned cabin. Michael Dowd was arrested in 1992 for his
part in assaulting citizens and other corruption, testified about his
and his colleagues activities to the Mollen Commission in 1993, was
convicted in 1994 and sentenced to 14 years but paroled in 2004 after
serving ten. Ted Briseno was fired from the LAPD in 1994 despite both
state and federal acquittals after informing on his fellow officers in
violation of their unwritten
Blue Code of Silence and is living somewhere in
Illinois.
Tax fraud
The
Internal Revenue service
rewards whistleblowers with a percentage of the tax money and penalties
recovered with the information provided. In September 2012,
Brad Birkenfeld received a $104 million prize for revealing how the wealthy use Swiss Banks to avoid taxes.
[26]
UK
In the
United Kingdom, the
Public Interest Disclosure Act 1998
provides a framework of legal protection for individuals who disclose
information so as to expose malpractice and matters of similar concern.
[27]
Australia
There are also laws in a number of states.
[28]
The former NSW Police Commissioner Tony Lauer summed up official
government and police attitudes as: "Nobody in Australia much likes
whistleblowers, particularly in an organisation like the police or the
government." Mr Lauer's comments are clearly at odds with public support
for
WikiLeaks.
Whistleblowers Australia
is an association for those who have exposed corruption or any form of
malpractice, especially if they were then hindered or abused.
[29]
Canada
Canadian protection for whistleblowers is notoriously poor by English-speaking countries' standards.
[weasel words] Until recently, there was no formal protection for those who spoke up from a position of knowledge inside government
[citation needed], with even senior civil servants (
Shiv Chopra being one notable case) being fired or constructively dismissed for speaking up about internal abuses.
In the private sector, the situation was even worse as Canada retained the unreformed common law of
libel without the exceptions for public issues or public interest that were added in all other English-speaking countries.
[citation needed] This made
political libel
cases unfortunately common, with one infamous case even filed by the
Prime Minister himself versus Official Opposition for alleging that the
Prime Minister, when in Opposition, had bribed MP
Chuck Cadman.
[citation needed]
Historically, many Canadian private sector business scandals had come
to light only through the intervention of the US SEC or other
regulators (
Garth Drabinsky,
Conrad Black,
Steven Bingham
being three notable examples), due in part to the lack of whistleblower
protections, plaintiff-friendly libel laws and a lack of investigative
journalism due to these.
[citation needed]
Canadian government
Canada's parliament has instituted the
Public Sector Integrity Office (Canada),
a parliamentary office for the protection for whistleblowers who speak
up against abuses in government. However, that office was itself cast
into some doubt when the first Integrity Commissioner,
Christiane Ouimet, was heavily criticized in the
auditor general's report in December 2010.
[30][31] Cabinet minister
Stockwell Day defended the office
[32] but independent groups urged the re-opening of already closed files.
[33][34]
Jamaica
In
Jamaica, the Protected Disclosures Act, 2011
[35]
received assent in March 2011. It creates a comprehensive system for
the protection of whistleblowers in the public and private sector. It is
based on the UK's Public Interest Disclosure Act.
India
The
Government of India
has been considering adopting a whistleblower protection law for
several years. In 2003, the Law Commission of India recommended the
adoption of the Public Interest Disclosure (Protection of Informers)
Act, 2002.
[36]
In August 2010, the Public Interest Disclosure and Protection of
Persons Making the Disclosures Bill, 2010 was introduced into the
Lok Sabha, lower house of the
Parliament of India.
[37]
The Bill was approved by the cabinet in June, 2011. The Public Interest
Disclosure and Protection of Persons Making the Disclosures Bill, 2010
was renamed as The Whistleblowers' Protection Bill, 2011 by the Standing
Committee on Personnel, Public Grievances, Law and Justice.
[38] The Whistleblowers' Protection Bill, 2011 was passed by the Lok Sabha on 28 December 2011.
[39] The Bill is however currently pending in the upper house of Parliament,
Rajya Sabha for discussion and further passage. The Bill was introduced in Rajya Sabha on 29 March 2012 by
V. Narayanasamy, Minister of State for Parliamentary Affairs.
Ireland
The government of
Ireland
committed to adopting a comprehensive whistleblower protection law in
January 2012. The bill will reportedly cover both the public and private
sectors.
[40]
Other countries
There are also comprehensive laws in
New Zealand and
South Africa. A number of other countries have recently adopted comprehensive whistleblower laws including
Ghana,
South Korea, and
Uganda. They are also being considered in
Kenya and
Rwanda. The
European Court of Human Rights ruled in 2008 that whistleblowing was protected as freedom of expression.
[41]
Legal acts
|
The examples and perspective in this article deal primarily with the United States and do not represent a worldwide view of the subject. Please improve this article and discuss the issue on the talk page. (August 2010) |
Ceballos case and the Whistleblower Protection Act of 2007
The US Supreme Court dealt what many considered a major blow to
government whistleblowers when, in the case of Garcetti v. Ceballos,
04-5, 547 US 410,
[42] it ruled that
government employees
did not have protection from retaliation in performance evaluations by
their employers under the First Amendment of the Constitution if the
alleged speech was produced as part of his/her duties.
[43]
Ceballos did not dispute that his memo was made as part of his official
duties. Whistleblowers who want to pursue a federal case under the
First Amendment must now always claim the memos and writings made are
part not only of the official duty but of a citizen's opinion and
discourse of public relevance. This can be done by alleging that the
cause for retaliation is not the text of the memo but the ideas
surrounding it. In the case of Ceballos he could have argued that his
protected speech was his concept of strict adherence to the rule of law.
The free speech protections of the First Amendment have long been
used to shield whistleblowers from retaliation by whistleblower
attorneys. In response to the Supreme Court decision, the
House of Representatives passed H.R. 985, the
Whistleblower Protection Act of 2007. President
George W. Bush, citing
national security concerns, promised to
veto
the bill should it be enacted into law by Congress. The Senate's
version of the Whistleblower Protection Act (S. 274), which has
significant bipartisan support, was approved by the
Senate Committee on Homeland Security and Governmental Affairs on June 13, 2007. However, it has yet to reach a vote by Senate as a hold has been placed on the bill by Senator
Tom Coburn (R-OK).
[44] According to the
National Whistleblower Center, Coburn's hold on S. 274 has been done to further President Bush's agenda.
[45]
In December 2010 the Senate passed enhanced protections for
government employees and contractors who report cases of waste, fraud
and abuse.
[46]
California False Claims Act
The
California
False Claims Act protects whistleblowers from retaliation from their
employer under a section entitled: "Section 12653. Employer interference
with employee disclosures."
[47]
Under this section, employers may not make rules that prevent an
employee from disclosing information to the government in furtherance of
a false claims action, an employer may not discharge, demote, suspend,
threaten, harass, deny promotion to, or in any other manner discriminate
against, an employee in the terms and conditions of employment because
he or she has disclosed information to the government.
Conscientious Employee Protection Act (CEPA)
CEPA,
New Jersey's
whistleblower law, prohibits an employer from taking any retaliatory
action against an employee because the employee does any of the
following:
- Discloses, or threatens to disclose, to a supervisor or to a public
body an activity, policy, or practice of the employer or another
employer, with whom there is a business relationship, that the employee
reasonably believes is in violation of a law, or a rule or regulation
issued under the law, or, in the case of an employee who is a licensed
or certified health care professional, reasonably believes constitutes
improper quality of patient care;
- Provides information to, or testifies before, any public body
conducting an investigation, hearing or inquiry into any violation of
law, or a rule or regulation issued under the law by the employer or
another employer, with whom there is a business relationship, or, in the
case of an employee who is a licensed or certified health care
professional, provides information to, or testifies before, any public
body conducting an investigation, hearing or inquiry into quality of
patient care; or
- Objects to, or refuses to participate in, any activity, policy or
practice which the employee reasonably believes: is in violation of a
law, or a rule or regulation issued under the law, or, if the employee
is a licensed or certified health care professional, constitutes
improper quality of patient care; is fraudulent or criminal; or is
incompatible with a clear mandate of public policy concerning the public
health, safety or welfare or protection of the environment.[48]
"Concerning protection for health care workers who report patient safety information" in Colorado
"Patient safety is of paramount importance in the delivery of health care to
Colorado
citizens. A patient is at his or her safest when a health care worker
has the right to speak out on the patient's behalf without fear of
reprisal or retaliation. Health care providers recognize that, in order
to deliver the highest quality health care, it is imperative that all
health care workers have the right to report patient safety concerns and
to advocate for a patient's well being without the risk of disciplinary
action or loss of employment."
[49]
Medical residents and extending whistleblower protection to enforce safety, health, and maximum work hour standards
Other proposals have been made to extend federal whistleblower
protection to medical residents working at health care facilities,
hospitals, and health care providers, as an internal means to ensure
that certain patient hospital and health standards are being
effectuated, including enforcing maximum hour guidelines for medical
residents
[50]
Best International Practices For Organizations
All organizations, whether public, private, or non-profit (including
governmental) should, as a best practice, adopt a robust whistleblower
system to induce its employees to internally report illegal or
excessively risky activity directly to its board of directors or
trustees. Without a robust whistleblower system, directors/trustees of
the organization may fail in their oversight responsibilities. A robust
whistleblower system encourages internal reporting of misconduct so as
to permit it to be corrected.It is particularly important in countries
(such as the United States) which provide significant financial rewards
to whistleblowers who externally report illegal behavior to government
entities.
There have been numerous examples of boards of directors/trustees who
have been uninformed as to problems in the organization, even though
lower level employees knew about these problems. These boards were
misled because they relied primarily on top management and the auditors
for their information.
See also
-----------