Speaking up about fraud, waste, or safety issues at work can put a target on your back. Illinois law gives you tools to fight back—common-law retaliatory discharge and the Illinois Whistleblower Act (IWA)—and a new appellate decision shows how powerful those tools can be.
In Kaytor v. Southern Illinois Hospital Services (Oct. 1, 2025), the Fifth District Appellate Court affirmed a Jackson County jury verdict for a long-time hospital employee who was fired after repeatedly reporting Medicare/Medicaid fraud and abuse. The jury awarded $291,251 in economic loss, $250,000 for emotional distress, and $3,000,000 in punitive damages—all upheld on appeal.
What You Have to Prove in an Illinois Retaliatory Discharge Case
To win a common-law retaliatory discharge case in Illinois, you must prove:
- you were an employee;
- you were fired; and
- the firing violated a clearly mandated public policy—for whistleblowers, that usually means you reported suspected illegality or public-safety risks. The ultimate issue the jury decides is your employer’s motive.
In Kaytor, the employer argued the jury should have been told that the protected conduct had to be the proximate cause of the firing. The court rejected that—confirming that Illinois Pattern Jury Instruction 250.02 uses “a proximate cause,” and that instruction is correct. The jury also received a defense instruction emphasizing the ultimate focus on employer motive.
What this means for you: you do not have to prove retaliation was the only reason. If your reporting was a real, motivating cause, you can meet the standard.
Why Kaytor Was Fired (and Why the Jury Didn’t Buy the Defense)
Kaytor’s amended complaint alleged he was fired because he reported Medicare and Medicaid fraud and abuse. At trial the defense claimed he was let go for “lack of leadership,” but the jury credited the retaliatory-motive evidence and found for Kaytor. The appellate court’s summary confirms the public-policy basis (reporting Medicare/Medicaid fraud) and the verdict.
What Damages Are Available—and How They’re Proven
Economic (lost wages/benefits)
Back pay covers what you would have earned but for the firing (salary and benefits), minus what you actually earned. In Kaytor, the jury awarded $291,251 in economic loss.
Emotional distress (no expert required)
Being fired for doing the right thing is devastating. Illinois law lets juries award emotional-distress damages in retaliatory discharge even without medical or expert testimony. The Fifth District reaffirmed that lay testimony and surrounding circumstances can be enough.
Punitive damages (punishing deterrence)
Punitive damages punish and deter—not compensate. The Kaytor court upheld a $3,000,000 punitive award after applying the U.S. Supreme Court’s Gore/State Farm guideposts (reprehensibility, ratio, and comparisons). With compensatories at $541,251, the ratio was about 5:1, which the court found within due-process limits on these facts.
The Illinois Whistleblower Act (IWA): Another Path to Protection
Alongside the common-law tort, the IWA independently forbids retaliation when an employee discloses or threatens to disclose to a public body or government/law enforcement, or (under recent amendments) to internal supervisors or certain affiliated organizations that make the employer aware, where the employee has a good-faith belief the conduct violates law or poses a specific danger to health or safety. It also protects employees who refuse to participate in illegal conduct. The statute authorizes make-whole relief, including reinstatement, back pay, and other remedies.
What to Do Right Now If You Think You’re Being Targeted
- Write it down. Keep a contemporaneous timeline of what you reported, to whom, and when; note every adverse action with dates.
- Preserve evidence. Save relevant emails/texts and policy documents (again, without violating legal or confidentiality duties).
- Report smart. If safe, make your reports in writing to compliance/HR and, when appropriate, to a public body or law enforcement (the IWA expressly protects those disclosures).
- Don’t go it alone. An employment lawyer can assess whether to pursue common-law retaliatory discharge, the IWA, or both, and can protect you from additional retaliation.
Kaytor is a clear signal: when an Illinois jury finds you were fired because you reported suspected illegality, courts will back the verdict—including emotional distress without expert testimony and substantial punitive damages to deter future retaliation. If you were terminated after raising concerns about fraud, safety, or other unlawful conduct, you have rights—and real remedies.
We’re Here to Help
At 1818, we’re dedicated to protecting employees from unlawful labor practices—including wage theft, forced overtime, retaliation, and misclassification.
If you’re being discriminated against, have been terminated because you were a whistleblower, or faced other employment issues, contact the Law Firm of 1818 today. We’ll fight to ensure your rights are protected, your time is valued, and your employer is held accountable.
