How Can an Employer Avoid

Whistle Blower Risks?

Whether big or small, every company has employees who form

groups and complain about the company. They generally

criticize their pay, working hours and safety standards. Some of

them go a little further and become whistleblowers creating

issues.

A whistleblower is an employee who complains to external

agencies that the company is doing something he believes is

wrong. As an employer, you should be aware of how you can

avoid whistleblower risks.

The purpose of this article is not to say that whistleblowing is

wrong. We think many of the whistleblower cases can be

avoided provided employers take care of certain things.

Why whistle blowers are a risk

Dealing with whistleblowers is risky because they often complain

to government agencies without first bringing the issue to the

cognizance of their employer.

Whether an employee is merely a complainer or really a

whistleblower, you have to be very careful in dealing with them as

the law protects them. The purpose of the Whistleblowers

Protection Act is to allow employees to report employer’s actions

that the employee thinks violate specific rules. There are many

federal and state laws such as the Occupational Safety and Health

Act, the False Claims Act, the Dodd-Frank Act, Sarbanes-Oxley

Act, etc. that provide protection to whistleblowers.

The law also protects the employee against retaliation from the

employer like disengaging the employee, denying benefits,

demoting, intimidating, blacklisting, disciplining, denying

overtime or promotion and reducing pay or hours.

Further, the employee who blows the whistle gets 15%-25% of

the amount as an award by the court of law according to the law

under False Claims Act.

What the employer needs to do

You may not be willing to believe that an unacceptable activity is

going on in your company, but showing your anger to the

whistleblower is likely to make it more problematic. Instead, be

sensible and consider the issue as an opportunity to review existing

systems and processes.

Ensure compliance

As an employer, the first thing that you need to do is assess the

workplace and ensure that it is per compliance standards. You

should follow the rules meticulously and ensure compliance. In

some states, it is mandatory for employers to display whistleblower

posters. Make sure to check the laws with a compliance services

provider.

Hold goodwill meetings

It's important to note that for optimal compliance of labor laws,

employees' cooperation is essential as well. Make sure to gain

goodwill of your employees by cultivating cordial relations with

them. Make rules at the workplace clear. Explain your position

firmly. This is likely to dissuade employees from becoming

potential whistleblowers.

Develop a compliant policy

Create a positive impression among employees that, as the

employer, you are not going to retaliate when an employee

complains about a certain process or activity. If you get a

complaint submitted by an employee, investigate the matter

thoroughly and take remedial measures without fail according to

rules of your company. This will help you gain the trust of

employees.

Take help of compliance services

The problem with whistleblowers is the exact definition of the

term is not clear. Some statutes have definitions that are very

narrow and others give a very broad definition. Therefore, it's

better to take help of compliance services to avoid risk.

Whatever is the outcome of the whistleblower case, you will

have to spend a lot of time, effort and money. By taking the

precautions as discussed, you can minimize whistleblower risks.

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