Can I Sue My Employer for Retaliation Because I Was a Whistleblower?

Whistleblowers play a crucial role in holding governments and organizations accountable. Employees who report illegal activities, unethical behavior, workplace safety violations, or financial fraud often take significant personal risks. Fortunately, numerous federal and state laws protect whistleblowers from retaliation, including wrongful termination, demotion, or harassment.

Federal Whistleblower Protection Laws

Several federal laws provide whistleblower protections, including:

• Whistleblower Protection Act (WPA): Protects federal employees who report evidence of fraud, waste, abuse, or violations of laws within government agencies.
• Whistleblower Protection Enhancement Act (WPEA): Expands the WPA to provide stronger protections for federal employees who expose corruption or misconduct.
• Sarbanes-Oxley Act (SOX): Shields employees of publicly traded companies from retaliation when reporting corporate fraud, financial misconduct, or securities violations.

What Type of Activity is Protected Under Whistleblower Laws?

• Reporting violations of laws, regulations, or company policies
• Disclosing fraud, financial mismanagement, or abuse of authority
• Participating in whistleblower investigations or legal proceedings

Most whistleblower claims involve financial fraud, workplace safety violations, healthcare fraud, government contract fraud, and employment discrimination.

What Qualifies You as a Whistleblower?

Simply complaining about workplace issues does not automatically grant whistleblower protections. To qualify:

• You must reasonably believe that your employer is violating the law and report it internally to management or externally to a regulatory agency.
• You must face retaliation, such as wrongful termination, demotion, denial of benefits, workplace harassment, or threats that affect your future employment.

Illinois Whistleblower Protection – Stronger Employee Rights

Illinois law offers additional protections beyond federal statutes. The Illinois Whistleblower Act (“IWA”), 740 ILCS 174/1, was recently amended, effective January 1, 2025, to strengthen employee protections. Key updates include:

• Employees can report employer misconduct internally to a supervisor, principal officer, or board member—not just to government agencies.
• “Retaliatory action” now includes not only employment-related actions (termination, demotion, reduced hours) but also threats that could harm an employee’s future job prospects or immigration status.

Whistleblower Retaliation Damages in Illinois

Employees who face retaliation under Illinois law may receive:

• Job reinstatement
• Back pay and front pay with interest
• Attorneys’ fees and litigation costs
• Liquidated damages and civil penalties up to $10,000
• Injunctive relief to prevent further employer retaliation

Can You Sue Your Employer for Whistleblower Retaliation?

Yes. If your employer retaliates against you for reporting misconduct, you may have legal grounds to sue under both federal and Illinois whistleblower laws.

What Should You Do If You Experience Retaliation?

1. Keep thorough records. Document the dates, times, places, and details of the actions, along with any witnesses, evidence, or communication that support your claim. Retain copies of your employment contract, policies, handbook, performance reviews, pay stubs, and other documents that outline your work history and achievements. If the actions occurred by email or text, print a copy.
2. Report the discrimination. Notify a supervisor or human resources department about the discrimination and request immediate action. Follow your employer’s policies and procedures for reporting and resolving complaints and keep copies of any written or verbal responses you receive.
3. Seek legal advice. If your employer fails to address or resolve the discrimination, contact an attorney at 1818 for assistance in filing a formal charge of discrimination with the Equal Employment Opportunity Commission (EEOC) or the Illinois Department of Human Rights (IDHR).