Several different laws empower individuals to alert law enforcement about potential corporate wrongdoing. Some of them provide a financial incentive for people to blow the whistle. Businesses and executives can take several steps to successfully defend against whistleblower complaints and claims that have already begun, as well as several precautions to prevent one from ever being made.
1. Know Which Laws Protect Whistleblowers, and Which Ones Incentivize Them
Generally speaking, whistleblowers will be legally protected from retaliation through different whistleblower programs because they have reported corporate fraud, wrongdoing, or criminal activity to law enforcement or a regulatory agency. Those protections come from a variety of sources and depend on the nature of the conduct being reported.
For example, workers can file complaints with the Occupational Safety and Health Administration (OSHA) concerning unsafe or unhealthy workplace conditions that violate the Occupational Safety and Health (OSH) Act. Section 11(c) of the OSH forbids any act of retaliation or discrimination against someone who has filed such a complaint.
Laws that provide these protections serve as passive incentives for workers to blow the whistle on potentially wrongful corporate conduct.
However, some whistleblower laws go further. Instead of just protecting workers from retaliation after reporting what appears to be misconduct, some laws incentivize reporting by providing whistleblowers with a...
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