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Whistleblower & Qui Tam

Whistleblower contract dispute attorney michigan

Employment Law

Whistleblower & Qui Tam

Whistleblowers’ Protection Act

Michigan’s Whistleblowers’ Protection Act (WPA) protects employees who report, or are about to report, a violation or suspected violation of local, state, or federal law to a public body. The WPA also protects employees who participate in related investigations of their employer.

The purpose of the WPA is to protect employees from adverse employment actions when the employee blows the whistle on his or her employer to a public body for a violation or suspected violation of the law. The WPA defines employer as a person who has one or more employees. The term includes an agent of an employer and the state or a political subdivision of the state.

It is important to note that the definition of public body includes state, county, city, township, and other government entities or employers, including law enforcement agencies, but does not specifically include federal agencies. Federal agencies are considered a public body under the “law enforcement agency” section of the WPA’s definition of public body. Thus, reports to federal agencies are not reports to public bodies, and thus not protected under the WPA, unless the federal entity is a law enforcement agency. The federal Department of Energy has been held to be a law enforcement agency under the WPA, because it has powers to conduct civil and criminal investigations relating to its operations. Similarly, the Office of Federal Contracts Compliance Programs is considered a public body under the WPA.

To establish a case under the WPA, a plaintiff must show that (1) he or she was engaged in protected activity, as defined by the act; (2) he or she was discharged, threatened, or discriminated against; and (3) a causal connection existed between the protected activity and the discharge. A causal connection can be proven with implied or direct evidence. Similar to employment discrimination, the employer then must produce a legitimate business reason for the aggrieved employment action, and the employee has a burden to disprove the employer’s alleged business reason as pretext. Employers often defend these matters claiming not to know or believe that the employee was engaged in protected activity. Circumstances of the employment action taken against the employee often imply that the employer knew of the protected activity.

The WPA offers extensive damages to the plaintiff, which includes reinstatement of the employee, the payment of back wages, full reinstatement of fringe benefits and seniority rights, actual damages, or any combination of these remedies. In addition, emotional distress damages are available to a plaintiff. Also, the WPA allows a successful plaintiff to be awarded the costs of litigation, which include attorney fees and witness fees.

Perhaps most notable about the WPA is its extremely short time period for an employee to bring an action under the WPA. Such a claim must be brought within 90 days after the occurrence of the alleged violation of the WPA.

Qui Tam Claims

Qui tam claims are quite similar to WPA claims, but they do not necessarily require that the whistleblower report the alleged wrongdoing to a public agency, and they do require that he or she prosecute the matter. Qui tam comes from a Latin phrase, “qui tam pro domino rege quam pro se ipso in hac parte sequitur.” The rough translation of this phrase is “he who brings an action for the king as well as for himself.” A qui tam lawsuit is brought by a whistleblower under the False Claims Act. If successful in assisting the government in recovering losses, the whistleblower is rewarded for their assistance.

Qui tam lawsuits cover a wide array of fraud and abuse including:

  • Medicare fraud
  • Medicaid fraud
  • Defense contractor fraud
  • Prevailing wage (Davis Bacon and related acts) violations, including failure to pay overtime
  • Best Price cases — price manipulation; claims for overcharging government entities
  • Charging the government for work that was not completed properly or which was completed using substandard parts

The federal False Claims Act is a law that imposes liability on persons and companies (typically federal contractors) who defraud governmental programs. It is the government’s primary litigation tool in combating fraud against the government.

Utilizing the False Claims Act, any private citizen has the right to sue a business or an individual that is defrauding the government. The suit is brought in the name of the government, and the whistleblower is called the “relator.” Whistleblowers may also have their own claim, typically for retaliation.

Filing a qui tam lawsuit has its protections — and its rewards. Due to potential personal and professional risks, whistleblowers, under the False Claims Act, have job protection. The False Claims Act has an anti-retaliation provision for whistleblowers who are either considering filing a claim or for those who do decide to file a claim. This can include retaliation such as demotion, being fired, sidelined, being blackballed, or similar measures. It also allows the whistleblower to seek compensation if or when job retaliation does occur.

If you file a qui tam claim, you can be eligible to receive a percentage of the total amount of money recouped from the fraudulent practices. Whistleblowers who file under the act receive a reward for bringing the action in the range of 15-25 percent of those recovered funds. There are various factors that can affect the amount of reward that a qui tam whistleblower will receive.

If a defendant is found liable under the False Claims Act, they may be required to pay up to three times the losses that the government endured — plus penalties for each false claim.

Additional measures are in place for privacy protection of anyone who files a qui tam complaint. Under the False Claims Act, once you secure a qui tam lawyer and a claim is filed, the case is sealed for 60 days. What this means is that no one but the government (and you and your qui tam lawyer) knows about the case. It is kept secret from the party that is accused of fraud. This gives the government the appropriate amount of time to investigate and decide if it wants to join (intervene) in the case.

If you suspect your employer or another person or company is in violation of the Whistleblower Protection Act or False Claims Act please contact The Schipper Law Group as soon as possible by filling out the form here or by calling us at (248) 729‑2414. Our Whistleblower Protection Act or False Claims Act (Qui Tam) attorneys will explain all of your rights, explore every option, and provide you with aggressive representation when needed. We have a proven track record of achieving successful outcomes inside and outside of the courtroom.

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