Texas Supreme Court justices on Tuesday questioned what constitutes a good-faith report under the state’s Whistleblower Act, in a case of two former government employees who accused a state health agency of breaking the law.

Attorneys for the Texas Health and Human Services Commission contend that the plaintiffs, two former HHSC managers, didn’t submit a good-faith report because they failed to directly accuse that government entity of wrongdoing.

“Their primary claim has always been that they were fired for repeating a report made for the first time years earlier that a contractor had violated a particular Medicaid regulation, but the ...

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