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 New Jersey, whistleblowers are protected under both state and federal statutes. The New Jersey Conscientious Employee Protection Act (CEPA), often referred to as the 'Whistleblower Act,' is one of the most comprehensive whistleblower statutes in the United States. It prohibits employer retaliation against employees who report, or threaten to report, activities that they reasonably believe are illegal or in violation of public policy. This includes disclosing or objecting to practices that the employee believes to be fraudulent, criminal, or harmful to the public health and safety. At the federal level, statutes like the Whistleblower Protection Act of 1989 protect federal employees who report wrongdoing, and other laws such as those under 15 U.S.C. §2087 protect employees in specific sectors, like consumer product safety, from employer retaliation. Whistleblowers are encouraged to provide evidence to support their claims and must be cautious as they can face criminal prosecution for making false claims. The protections afforded to whistleblowers are designed to encourage the reporting of misconduct while safeguarding the individuals who come forward from adverse actions.