Can a Terminated Employee Become a Whistleblower?

The connection between termination and whistleblowing often raises questions for employees who wish to report misconduct after leaving a job. Reporting illegal activity is important, but you need to understand your rights and potential protections under the law.

Can Former Employees Be Whistleblowers?

Yes. Being terminated does not automatically disqualify you from whistleblower protections. Many successful whistleblower cases involve former employees who reported misconduct after leaving their jobs. Federal and state laws extend protections to employees even after employment ends, provided certain conditions are met.

Legal Protections for Former Employees

Several federal statutes protect former employees who report illegal activity:

• False Claims Act (FCA):Allows former employees to file qui tam lawsuits, where private individuals sue on behalf of the U.S. government to recover funds lost to fraud.
• Sarbanes-Oxley Act (SOX):Protects former employees who report securities violations or accounting fraud.
• Industry-specific laws: Healthcare, finance, and other sectors have statutes protecting whistleblowers, including former employees.

Retaliation and Termination

If your termination was in response to your reporting—or intention to report—illegal activity, this could constitute unlawful retaliation. Courts examine factors such as:

• Timing of termination relative to your disclosure or intent
• Statements made by the employer
• Patterns of behavior suggesting retaliation

Evidence That Strengthens a Case

Former employees often have access to information critical for building a whistleblower case. Useful evidence includes:

• Emails and internal reports
• Financial records
• Witness statements
• Documentation of communications with supervisors or compliance departments

Deadlines for Filing Claims

Whistleblower statutes have different filing deadlines:

• False Claims Act: Claims must generally be filed within six years of the violation, or within three years of when the government officially knew (or should have known) about the violation.
• Other statutes may have shorter or longer time limits depending on the industry and type of misconduct.

Investigation Process

After filing a whistleblower complaint, government agencies (such as the Department of Justice or the Securities and Exchange Commission) typically:

1. Review the allegations to assess merit
2. Request supporting documentation
3. Interview the whistleblower and witnesses
4. Decide whether to pursue enforcement or litigation

During this process, former employees may need to provide extensive records, participate in interviews, and potentially testify in court.

Financial Rewards for Whistleblowers

Certain statutes provide monetary incentives for whistleblowers:

• Under the False Claims Act, whistleblowers may receive 15–30% of the recovery obtained by the government in successful qui tam lawsuits.
• In cases involving large-scale fraud, these awards can reach millions of dollars, providing substantial financial benefit for those who come forward with valid claims.

Contact Our Cherry Hill Whistleblower Lawyers at The Gold Law Firm P.C.

Whether you are currently employed or were terminated, our experienced Cherry Hill whistleblower lawyers at The Gold Law Firm P.C. can guide you through your rights and help you pursue justice. Call 215-569-1999 or complete our online form to schedule a free consultation. Located in Philadelphia and Pennsauken, NJ, we serve clients in Southeastern Pennsylvania and South Jersey, including Cherry Hill, Haddonfield, Marlton, Moorestown, and Mount Laurel.