## Whistleblower protection in South Carolina Whistleblowers — employees who report illegal or unsafe conduct — are protected by an overlapping web of federal and state laws. Some statutes also offer **financial rewards** to whistleblowers who help recover government funds. ## Major federal whistleblower statutes **1. False Claims Act (FCA, 31 U.S.C. § 3729).** "Qui tam" lawsuits where private citizens sue on behalf of government to recover fraud against federal programs (Medicare, Medicaid, defense contracting, etc.). Whistleblowers receive 15-30% of recovery + attorney's fees. **2. Sarbanes-Oxley (SOX) § 806.** Protects employees of public companies who report securities fraud / SEC violations / fraud against shareholders. Federal cause of action with reinstatement, back pay, special damages. **3. Dodd-Frank.** Protects whistleblowers reporting securities violations to the SEC. Awards: 10-30% of monetary sanctions over $1M when whistleblower's tip leads to enforcement. **4. IRS Whistleblower Program.** Awards 15-30% of recovery for tips on tax fraud over $2M. **5. OSHA Whistleblower Protection.** Section 11(c) of OSH Act + 20+ industry-specific statutes (truck drivers, airline workers, healthcare, environmental, etc.). **6. Whistleblower Protection Act (WPA).** Federal employees reporting waste, fraud, abuse. **7. Anti-Money Laundering Whistleblower Program.** AMLA awards 10-30% to whistleblowers reporting money laundering / sanctions violations. **8. Anti-Kickback Statute / Stark Law.** Healthcare-specific protections. ## State-level whistleblower protections Most states have: - **Public-employee whistleblower acts** — protect government workers reporting agency misconduct - **Private-sector whistleblower laws** — protect reports of legal violations - **Public-policy exception** — common-law protection against firing for refusing to break the law - **State False Claims Acts** — qui tam actions for state-program fraud (about 30 states) Strong-protection states: NJ (CEPA), CA (Lab. Code § 1102.5), NY (§ 740, broadened 2022), MN, CT, MI. ## What's a protected report Generally protected: - Reporting illegal activity to regulators - Refusing to participate in illegal acts - Reporting fraud against government - Reporting securities violations - Reporting tax fraud - Reporting safety violations (OSHA) - Reporting healthcare fraud - Reporting environmental violations - Cooperating with investigations Protected reports can be made to: - Government agencies (always protected) - Internal company reporting channels (protected in most laws) - Law enforcement - Court testimony / depositions - Some states protect reports to media ## What's NOT protected - Personal grievances / workplace disputes - Reports of conduct you knew was legal - False / bad-faith reports - Reports made AFTER misconduct you participated in - Disclosing trade secrets (without statutory protection) ## What protection looks like Most whistleblower laws prohibit: - Termination - Demotion - Pay cut / reduced hours - Negative performance reviews - Hostile environment - Reassignment to undesirable position - Blackballing in industry ## Damages typically available - **Reinstatement** - **Back pay** + interest - **Front pay** if reinstatement impractical - **Compensatory damages** — emotional distress, reputation - **Attorney's fees and costs** - **Liquidated damages** (some statutes — 2x back pay) - **Reward percentage** (qui tam, SEC, IRS, AMLA) ## Common timing pitfalls Statutes of limitations vary wildly: - **SOX § 806:** 180 days from retaliation - **Dodd-Frank:** 6-10 years - **FCA qui tam:** 6 years - **OSHA § 11(c):** 30 days (very short) - **State laws:** 2-3 years typical, but some shorter Filing deadline depends on which statute(s) apply. Often must file with multiple agencies in parallel. ## Practical strategy 1. **Document everything** before reporting — internal complaints, emails, witnesses 2. **Use internal reporting channels first** when statute requires (some do, like SOX) 3. **Consult a whistleblower attorney** before reporting externally 4. **Preserve records** carefully — but don't violate company policy or take trade secrets 5. **Don't sign separation agreements** without legal review 6. **Report to regulators** (SEC, IRS, OSHA, DOJ) for FINANCIAL rewards in eligible programs ## Qui tam cases **False Claims Act qui tam** lawsuits are the most lucrative whistleblower vehicle: 1. **Whistleblower ("relator") files complaint** under seal in federal court 2. **Government investigates** for at least 60 days (often years) 3. **Government decides** whether to intervene 4. **If government intervenes:** government takes over; whistleblower gets 15-25% 5. **If government declines:** whistleblower can pursue alone; gets 25-30% if successful 6. **Settlement / judgment** — recovery split between government and relator First-to-file rule: only the FIRST whistleblower to file on a fraud scheme can recover. Time matters. ## What you should do If you have evidence of illegal corporate or government conduct, talk to a whistleblower attorney BEFORE you report. Most South Carolina whistleblower attorneys offer free initial consultations and work entirely on contingency. The right strategy can mean the difference between losing your job AND getting nothing vs winning protection AND a multi-million-dollar reward. Don't go it alone. --- *This guide is general information about federal and South Carolina whistleblower law as of early 2026 and is not legal advice. Whistleblower law is highly technical with strict deadlines and procedural requirements. Talk to a licensed whistleblower attorney about your specific situation.*