The False Claims Act encourages whistleblowers to come forward when they suspect their employer is committing fraud. This post provides a general overview of the False Claims Act’s anti-retaliation provision, which protects whistleblowers from being retaliated against when they do so.
Basics of the False Claims Act’s Anti-Retaliation Protections
The anti-retaliation provision of the False Claims Act—31 U.S.C. §3730(h)—provides relief to whistleblowers who are retaliated against because they took action in furtherance of a False Claim Act action or undertook efforts to stop a False Claims Act violation. The provision applies to all types of retaliation, including termination, demotion, suspension, harassment, threats, or any other discrimination in the terms and conditions of employment. And the protections apply regardless of the type of employment relationship at play—all employees, contractors, and other agents of the employer are covered.
A whistleblower may assert a retaliation claim as a standalone cause of action. But in practice, whistleblowers often assert retaliation claims along with substantive fraud claims under the False Claims Act. A whistleblower may bring a retaliation claim in federal court and has up to three years after the date of the retaliation to file suit. Retaliation claims are subject to the pleading standard of Federal Rule of Civil Procedure 8(a), as opposed to Rule 9(b)’s heightened pleading standard for substantive False Claims Act claims.
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Dermatology services provider ADCS Clinics LLC and others settled a False Claims Act suit alleging they billed federal health-care programs for medically unnecessary exams and directed providers t...