Dive Brief

• Healthcare and defense industry employers already face dozens of employment laws, but exposure to whistleblower claims under the federal False Claims Act (FCA) is the latest growing risk, according to a National Law Review article.
• The article reports rising recent FCA whistleblower legal actions against healthcare employers. Under the FCA, individual whistleblowers, also called "relators,” allege that an entity (often their own employer) has somehow "defrauded the federal government by either overcharging or misspending federal money." Defense contractors and other employers are also vulnerable.
• According to author Mark Neuberger, of Foley and Lardner LLP, the incentive for whistleblowers is that the government will share any funds it recovers, typically between 15-25%.

Dive Insight:

Neuberger writes that the FCA includes an "anti-retaliation provision," which shields a "relator" should an employer discipline or fire the person in retaliation for bringing an FCA suit. That also would mean double damages plus attorney fees in addition to reinstatement.

Neuberger's advice to affected employers is all employment actions should be under a microscope. It must be clear and demonstrable that compensation is at “fair market value,” and all employment and/or compensation arrangements must be in writing. Things such as gifts, meals or non-monetary compensation needs to be carefully monitored, he writes. As is the case with all employment law situations, management training and "meaningful avenues of internal reporting of potential violations, followed by prompt investigation, is the best preventive medicine."