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Wednesday, April 22, 2026

Can an employer prevent a Section 11(c) whistleblower from getting double damages in a settlement agreement and release of a related claim? Maybe. - Lexology

In a recent decision in the Eastern District of New York, Walsh v. Community Health Center of Richmond, Inc., et al., 21-CV-3094 (ARR)(TAM), the court held that OSHA has the right to pursue individual damages for a Complainant under Section 11(c) even though a prior federal action brought by the Complainant against her employer raising the same whistleblower allegations under New York Labor Law (“NYLL”) § 740, which protects employee-whistleblower, was dismissed with prejudice. The Complainant sued her employer directly in the prior federal lawsuit alleging, among other things, that her termination violated OSHA’s General Duty Clause. During the course of the litigation, the Complainant filed a voluntary stipulation dismissing her NYLL § 740 claims with prejudice. It should be noted that the court there recognized that Section 11(c) of OSHA does not have a private right of action.

Following that prior lawsuit, the Secretary of Labor commenced the instant action alleging the employer violated Section 11(c) and sought front pay, back pay, compensatory, and punitive damages to be paid to the Complainant along with injunctive relief. In denying the employer’s motion to dismiss the victim-specific relief for the Complainant, the court rejected the employer’s argument that res judicata and the doctrine of claim preclusion barred the Complainant from receiving any individual relief. In doing so, the court held that the Secretary of Labor and the Complainant are not in privity.

It...



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