State and federal statutes protect employees who report evidence of fraud or wrongdoing from retaliation. These employees who alert government authorities to wrongdoing are sometimes referred to as whistleblowers and the laws that protect them from retaliation are known as whistleblower laws.

For example, the Whistleblower Protection Act of 1989 is a federal statute that protects federal government employees who report possible wrongdoing from retaliation. See 5 U.S.C. §2302(b)(8). Whistleblowers are required to submit information and documents to support their claims, and may be subject to criminal prosecution for making a false claim.

And employees of manufacturers, private labelers, distributors, and retailers are protected from retaliation by their employers for disclosing activities related to the violation of the federal consumer product safety law. See 15 U.S.C. §2087.

Whistleblower laws vary from state to state and in the federal system—and with the nature of the wrongdoing or illegal activity reported—but generally involve the protected disclosure by an employee of:

• the violation of any state or federal law, rule, or regulation;

• fraudulent billing of a state or federal governmental entity for goods or services;

• gross mismanagement of a state or federal contract or grant;

• gross mismanagement;

• gross waste of funds;

• abuse of authority;

• substantial and specific danger to public health or safety.

In Illinois, whistleblowers are protected under both state and federal statutes when they report evidence of fraud or wrongdoing. The Illinois Whistleblower Act (740 ILCS 174/) prohibits employers from retaliating against employees who disclose information to a government or law enforcement agency when they have reasonable cause to believe that the information discloses a violation of a state or federal law, rule, or regulation. This protection extends to employees who refuse to participate in activities that would result in a violation of state or federal law. At the federal level, statutes like the Whistleblower Protection Act of 1989 protect federal employees who report wrongdoing, and specific laws like 15 U.S.C. §2087 protect employees in the consumer product industry from retaliation for reporting violations of consumer product safety laws. Whistleblowers are encouraged to provide supporting information and documents when making claims and must be aware that false claims can lead to criminal prosecution. The scope of whistleblower protections can vary depending on the nature of the reported illegal activity, but generally, they cover reporting violations of laws, fraudulent billing, mismanagement of contracts or grants, waste of funds, abuse of authority, and actions that pose a danger to public health or safety.