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 Kentucky, as in other states, whistleblower laws are in place to protect employees who report illegal activities or misconduct from retaliation by their employers. These protections extend to various types of wrongdoing, including violations of state or federal laws, regulations, fraudulent billing of government entities, gross mismanagement, waste of funds, abuse of authority, and actions that pose a danger to public health or safety. At the federal level, the Whistleblower Protection Act of 1989 specifically safeguards federal government employees who disclose evidence of wrongdoing, ensuring they are not subject to reprisal. Additionally, under 15 U.S.C. §2087, employees involved with consumer products have protections when reporting legal violations related to consumer product safety. Whistleblowers are encouraged to provide supporting information for their claims and must be aware that false claims can lead to criminal prosecution. Kentucky state statutes complement these federal protections, ensuring that whistleblowers within the state have recourse if they face retaliation for their lawful reporting of misconduct.