What Is a Whistleblower?
Let me explain what a whistleblower is: it's anyone who has insider knowledge of illegal, illicit, or fraudulent activities in an organization and reports it. You could be an employee, supplier, contractor, client, or just someone who learns about dubious business practices. Know that whistleblowers like you are protected from retaliation under programs from the Occupational Safety and Health Administration (OSHA), the Sarbanes-Oxley Act, and the Securities and Exchange Commission (SEC). If you're a federal employee, the Whistleblower Protection Act of 1989 covers you.
Key Takeaways
You should remember that whistleblowers report illegal, unsafe, or fraudulent activities in private or public organizations. They get protection from retaliation through laws enforced by OSHA and the SEC. The term itself comes from the 19th century, and interestingly, sports referees were once called whistleblowers too.
Whistleblower Explained
Many organizations handle whistleblowing, but some focus on specific areas. For instance, OSHA deals more with environmental and safety issues, while the SEC handles securities law violations. These groups often offer rewards for valuable information, accept anonymous tips, and provide different ways to submit details.
As a whistleblower, you might share information with company officials or a larger regulatory body. If the fraud involves top executives, it's best to go straight to a regulator.
Origin of the Term
The term 'whistleblower' goes back to the 19th century. Ralph Nader gets credit for popularizing its modern use in the 1970s to dodge the negative vibes of words like 'informer.' It combines 'whistle' for alerting attention and 'blower' for the person doing it.
Less commonly, sports referees were known as whistleblowers because they signaled illegal plays to everyone involved. In the 1960s, journalists and activists like Ralph Nader used the term a lot, shifting how people see it today.
Notable Whistleblowers
One standout whistleblower is W. Mark Felt, aka 'Deep Throat,' who revealed President Richard Nixon's role in the Watergate scandal's illegal activities. Another is Sherron Watkins, an ex-Enron employee, who exposed the company's fake accounting, leading to Enron's collapse and the creation of the Sarbanes-Oxley Act.
Whistleblower Protection
If your information proves true, you're protected from retaliation as a whistleblower. This means the accused organization can't take harmful actions against you, like demoting, firing, reprimanding, or other punishments. They also can't sue you to recover losses from investigations or penalties.
In some cases, extra protection applies if there are threats of physical violence to you, your associates, or your family.
Whistleblower Rewards
You might get a reward for reporting illicit activities, often a percentage of the money recovered by the government or agency thanks to your info. There could be a minimum recovery amount required, and your information has to be unique and not previously reported.
Many companies have ways to report wasteful practices, which might not be illegal. So, if you report those, you might not qualify as a whistleblower or get protection, but organizations often encourage such input to improve efficiency and might give you some recognition or small reward.
However, if it's gross waste or involves big money, especially in government, reporting it can make you a whistleblower.
