There are multiple ways for people to become workplace whistleblowers. Often, whistleblowing begins as an internal process. People notify someone above them in the company’s chain of command about concerning practices they notice within the organization.
Other times, whistleblowers decide to report matters related to safety violations or illegal activities to regulatory agencies. If the company does not respond well to internal reports or fails to cease inappropriate conduct, notifying the appropriate government entity can be a form of whistleblowing.
Occasionally, employees acting as whistleblowers decide to file a qui tam lawsuit. Such lawsuits involved the worker acting as a relator on behalf of the federal government. What employees can potentially file qui tam lawsuits against their employers?
Government billing is essential for qui tam litigation
Qui tam lawsuits are not available in every whistle blowing scenario. Instead, they are typically only an option in cases where the False Claims Act applies. The False Claims Act is a federal statute regulating private businesses billing claims against the government. It authorizes qui tam lawsuits as a way of addressing illegal billing practices.
In many cases, those pursuing qui tam lawsuits work in the health care sector. Their employers receive compensation through Medicare or Medicaid insurance programs. Employees with non-public information about company conduct can blow the whistle by filing a lawsuit alerting the government to the misconduct of their employers.
Other industries that may give rise to qui tam lawsuits include railroad businesses, defense businesses educational institutions and even construction companies completing government projects. Frequently, workers in accounting or management are the ones who have viable evidence of inappropriate company practices.
If a business has engaged in fraudulent billing, workers with information about that misconduct can take legal action. A successful qui tam lawsuit can result in financial compensation for the employee. They receive a portion of the funds recovered by the government. They can also protect themselves from prosecution if the government brings charges against those involved in inappropriate billing practices within the organization.
Understanding the basics of qui tam lawsuits and the protections extended to whistleblowers can help workers decide if acting as a relator is their best option. Those who intend to file qui tam lawsuits may need support as they document company practices and begin the complex process of initiating a lawsuit.