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 York, whistleblowers are protected under both state and federal statutes when they report evidence of fraud or wrongdoing. The Whistleblower Protection Act of 1989 is a key federal law that safeguards federal employees who disclose information about potential violations from retaliation. Under this act, whistleblowers must provide evidence to support their claims and can face legal consequences for false allegations. Additionally, employees in the consumer product industry are shielded by federal law (15 U.S.C. §2087) from employer retaliation when they report violations of consumer product safety laws. New York State also has its own set of laws that protect public and private employees who report illegal activities, including the New York State Labor Law Section 740, which prohibits retaliation against employees who disclose or threaten to disclose activities that are in violation of law, pose a threat to public health, or constitute healthcare fraud. These protections cover a range of disclosures, such as violations of laws, fraudulent billing, gross mismanagement, waste of funds, abuse of authority, and dangers to public health or safety. It's important for employees to understand their rights under these laws and to consult with an attorney if they believe they are facing retaliation for whistleblowing activities.