A: Whistleblowers should be wary of company hotlines. While hotlines often promise confidentiality or anonymity, companies may still be able to identify the employee based on the complaint, and employees who report their concerns internally are often not protected from retaliation. In the past, employers have asserted that employees using internal channels are not protected. In fact, companies have successfully argued in court that they can fire at-will employees for reporting to their company hotline. Whistleblowers should remember that hotlines exist to benefit the company, rather than the individual reporting misconduct.
In February 2018, in Digital Realty Trust v. Somers, the Supreme Court held that whistleblowers who report potential securities fraud first to supervisors or internal channels are not protected from retaliation. To be protected from retaliation under the Dodd Frank Act, whistleblowers reporting securities fraud must report first to the Securities and Exchange Commission. Although this ruling only applied to the Dodd-Frank Act, the precedent could be applied to other laws that do not specifically protect internal reporting. The National Whistleblower Center is currently working to persuade Congress to reverse the Digital Realty decision to ensure that whistleblowers using company hotlines and other internal channels are protected against retaliation.