Do Whistleblowers Have to Be Employees? Here’s What You Need to Know

A whistleblower exposes insider knowledge about illegal, illicit, or fraudulent activities within an organization. For instance, if you raise the alarm after discovering that your boss has been embezzling company funds, you would be considered a whistleblower and could benefit from protection against retaliation. This article will answer a key question about whistleblowing: Who exactly can be a whistleblower?

Legal Rights and Protections Available to Whistleblowers 

“The specific rights and protections available to whistleblowers depend on the type of wrongdoing they are reporting and the relevant laws governing the industry or sector,” says South Carolina whistleblower attorney Bill Nettles of The Law Office of Bill Nettles.

A few examples include:

• The Whistleblower Protection Act (WPA) of 1989: Protects federal employees who report waste, fraud, or abuse within government agencies. 
• Sarbanes-Oxley Act (SOX) of 2002 Protects workers of publicly traded companies who report corporate fraud within these companies. 
• Dodd-Frank Wall Street Reform and Consumer Protection Act (2010): Offers protections and financial incentives to people who report securities law violations to the SEC.
• Occupational Safety and Health Act (OSHA): Protect workers who report workplace safety violations. 

You may have realized that most legal provisions that offer protection to whistleblowers mainly refer to employees. So, does this mean that only employees can be whistleblowers? Not quite so. Keep reading to find out.

Who, Other than an Employee, Can Be a Whistleblower?

It is true that the laws initially focused on protecting employees within an organization. However, the scope has since broadened to include other individuals, as you’ll see below:

• Contractors, consultants, and vendors: Under the Dodd-Frank Act, anyone, including contractors, consultants, and vendors, can be considered a whistleblower when they report securities law violations to the watchdog. 
• Shareholders and investors: The Sarbanes-Oxley Act and the Dodd-Frank Act allow individuals who are not employees but hold a stake in the organization to report insider trading, securities fraud, and other corporate misconduct. 
• Former employees: In many cases, former employees who become aware of or witness wrongdoing can still be considered whistleblowers. 
• It is possible for individuals in the public domain to be recognized as whistleblowers without any ties to the company. The False Claims Act, for instance, allows members of the public who are aware of fraud against the government to file lawsuits on behalf of the government. 

So, to answer your question, anyone can be a whistleblower. The protections offered to those who report misconduct extend not only to individuals with a relationship with the company but also to members of the public with such information.

Steps to Take as a Non-employee Whistleblower

Suppose you become aware of misconduct within a company that you are not a part of. Here is what you should do:

Document the Evidence

Gather and securely store any relevant information, documents, or communications supporting your claim. It’s important to be careful to avoid potential retaliation should you be discovered.

Understand the Law

Several whistleblower laws offer protection to whistleblowers across different industry settings. They include the Whistleblower Protection Act, the Sarbanes Oxley Act, and the Dodd-Frank Act, among others.

Assess the Risks

Before taking it any further, reassess the risks of your decisions going forward, such as possible repercussions, retaliations, legal risks, and professional consequences. A full grasp of the situation can help you prepare for the next steps. 

Get Legal Advice

Next, talk to an attorney who specializes in whistleblower law. They will assist you in comprehending the particular law safeguarding you against retaliation. Additionally, a lawyer can take you through the next steps, including ensuring the complaint is filed correctly and protecting your identity and rights.

File a Report Through the Appropriate Channels

With your lawyer’s guidance, follow through with the process of reporting the misconduct. Depending on the specific violation, you may have to file internally or contact government agencies like the SEC or OSHA. 

Conclusion 

To sum it up, anyone can report organizational misconduct and enjoy protection from retaliation, not just employees. It’s important to consult an attorney to understand the law and file the complaint correctly.