Coal Whistleblower FAQ

A: There is a large framework of U.S. laws that address many of the likely frauds in the coal industry.

The federal False Claims Act and state False Claims Acts allows whistleblowers to report fraud in government programs or contracts or fraud that prevents the government from collecting what it is owed, such as royalty payments. The Dodd-Frank Act allows whistleblowers to report securities and commodities fraud, the Foreign Corrupt Practices Act allows whistleblowers to report bribery or corruption, and the IRS Whistleblower Law allows whistleblowers to report tax fraud.

The U.S. Federal Mine Safety and Health Act also contains one of the first federal whistleblower protection provisions, and many environmental laws also have special provisions related to corporate whistleblowers. These include the Endangered Species, Clean Air, Toxic Substances, Clean Water, Atomic Energy, Solid Waste, Safe Drinking Water, and Superfund Acts.

A: Whistleblowers do not necessarily need to be employed at the company they are filing a complaint about. Many whistleblower laws only require that an individual or entity have original information about fraud. This can include both insider (nonpublic) information and original analysis of public information. Under some whistleblower laws, including the False Claims Act, non-governmental organizations can also qualify whistleblowers.

A: Yes. Under multiple whistleblower laws, such as the Dodd-Frank Act and the Foreign Corrupt Practices Act, eligibility and rewards do not depend on U.S. citizenship.

A: Yes. Many U.S. whistleblower laws have global reach. For example, the Dodd-Frank Act applies to all publicly-traded companies, regardless of their country of incorporation or operation and includes that company’s subsidiaries. The scope of the Foreign Corrupt Practices Act also includes foreign public companies listed on stock exchanges in the United States or companies that are required to file periodic reports with the SEC and their subsidiaries and personnel, as well as foreign entities and agents.

A: Yes. For employees at U.S. companies, the employee-protection provision of the Federal Mine Safety and Health Act protects miners, their representatives, and applicants for employment from retaliation for engaging in safety and/or health-related activities or refusing to engage in unsafe acts.

Through the False Claims Act, whistleblowers can also report companies who mislead the government about their emergency preparedness. The Dodd-Frank Act allows whistleblowers to report publicly-listed companies who mislead investors about health and safety practices, policies, and results or to report companies who mislead investors about risks that could affect share value, such as the risk of dam failure or the extent of resulting environmental liabilities.

A: Virtually all whistleblower laws prohibit employers from retaliating against employees for reporting in good faith to an appropriate government agency. Whistleblowers can also protect themselves from retaliation by reporting confidentially or anonymously. Under the Dodd-Frank Act and the Foreign Corrupt Practices Act, whistleblowers can request that their identity be kept confidential or file their complaint anonymously. The IRS is also required to protect the confidentiality of whistleblowers to the fullest extent permitted under law. Whistleblowers should consult with an attorney about how to secure protections against retaliation.

A: Yes. Several major laws provide awards for whistleblowers whose original information or analysis leads to a successful prosecution. Both the False Claims Act and IRS whistleblower law require payment to whistleblowers of between 15 and 30 percent of the government’s monetary sanctions collected over $1 million if they assist with prosecution of fraud. The Dodd-Frank Act and the Foreign Corrupt Practices Act require payment to whistleblowers of between 10 percent and 30 percent of monetary sanctions. Whistleblowers should consult with an attorney about how to obtain an award.

A: In many cases, employees are only protected from retaliation if they report to the government first, and companies have successfully argued that they can fire at-will employees for reporting to a company hotline. You should not make any disclosures to your company’s hotline or company compliance office until after you consult a whistleblower attorney.

A: Non-disclosure or non-disparagement agreements cannot lawfully prohibit individuals, including employees or former employees, from reporting unlawful conduct to law enforcement. For more information, please visit our non-disclosure agreements and whistleblowers page.

If you need help finding an attorney, visit Resources for Locating an Attorney.

The New Whistleblower’s Handbook: A Step-by-Step Guide to Doing What’s Right and Protecting Yourself (Lyons Press, 2017) is the first-ever consumer’s guide to whistleblowing. It contains clear and comprehensive rules that fully explain the how to effectively blow the whistle. It is very important that you review this resource in order to determine what laws may protect you and whether you need to take immediate action to protect your rights.