Whistleblower complaints are increasing across both the public and private sectors, driven partly by enhanced enforcement activity and financial incentives for individuals who report wrongdoing. Employers should take note of this trend and ensure their policies and practices are aligned with evolving legal risks.
In the public sector, whistleblower activity has surged under statutes such as the False Claims Act. This increase has been attributed to enhanced enforcement, as well as financial incentives for whistleblowers. For example, the Dodd Frank Wall Street Reform and Consumer Protection Act authorizes awards of 10–30 percent of monetary sanctions imposed by the Securities and Exchange Commission (SEC) or the Commodity Futures Trading Commission (CFTC), provided the enforcement action results in penalties or recoveries of at least $1 million. On January 29, 2026, the United States Department of Justice issued a $1 million dollar payment under its first-ever antitrust whistleblower award to an individual for a report that exposed a bid rigging and fraud scheme involving an online vehicle auction platform.
Not every complaint or report is considered whistleblowing. Whistleblowing generally arises when an employee reports suspected illegal or unethical conduct—either internally to management or externally to government authorities—and subsequently experiences an adverse employment action as a result of that report. Although whistleblowing plays a critical role in...
This article is commentary on matters of public concern. It is not legal advice. Consult licensed counsel about specific situations. This is Wrong. This is Illegal The President of the United Stat...