What are OSHA Whistleblower Rewards?
OSHA whistleblower rewards are payments made to whistleblowers under certain statutes for information that leads to the prosecution of a company in violation of the statute. In no circumstances is OSHA responsible for the payment of a reward, and OSHA’s involvement in such cases is usually limited to addressing retaliation against the whistleblower.
The term OSHA whistleblower rewards is a misnomer inasmuch as it implies the Occupational Safety and Health Administration (OSHA) pays whistleblowers for reporting violations of the Occupational Safety and Health Act (OSH Act). This is not the case. The only benefit to employees of reporting an OSH Act violation is to have a safer and healthier environment to work in.
In the event an employer retaliates against an employee for an activity protected by §1977 of the OSH Act, the employee can make a whistleblower complaint to OSHA. The employee has to file the whistleblower complaint within 30 days of the retaliatory event if the complaint is being filed with federal OSHA. The time limit for whistleblower complaints under State OSHA Plans varies up to one year.
On receipt of the whistleblower complaint, OSHA will investigate the complaint and – if it is justified – will attempt to assist the parties in reaching a voluntary settlement of the compliant. If it is not possible to resolve the complaint by negotiation, OSHA – via the Department of Labor – will sue the employer in the federal district court to obtain “relief” for the employee (rather than a “reward”).
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OSHA whistleblower “relief” is intended to correct any retaliatory wrongs committed against the employee. If, for example, an employee has been fired for reporting a violation of the OSH Act, the relief may consist of reinstatement, the recovery of lost pay, and/or a lump sum. If the employer refuses to reinstate the employee or pay the “relief”, OSHA can take further civil action against the employer.
Why are OSHA Whistleblower Rewards Misunderstood?
The reason why OSHA whistleblower rewards are misunderstood is that OSHA administers whistleblower protection programs for more than twenty statutes in addition to the OSH Act. Some of these statutes do pay rewards for information that leads to the prosecution of a company in violation of the statute. For example:
- If an employee reports a violation of the Sarbanes-Oxley Act to the Securities Exchange Commission, they may qualify for a reward of between 10 % and 30% of any final settlement.
- If the employee is subsequently retaliated against by their employer, they can file a whistleblower complaint with OSHA to obtain relief to correct any retaliatory wrongs.
The full list of whistleblower protection programs administered by OSHA can be found on the whistleblowers.gov “Complaints Page”. There is also a useful “Retaliation by Subject” guide on the same website that provides links to the relevant legislation in each statute, explains who is covered by each statute, and defines what each statute considers a protected activity. These are not always the same activities as defined by the OSH Act.
It is important to be aware that not all whistleblower protection programs are administered by OSHA. If, for example, an employer retaliates against an employee for reporting a violation of the False Claims Act, the whistleblower complaint has to be made to the same agency as investigated the False Claim allegation. In this case, it would either be the Department of Justice or HHS’ Office of Inspector General.
Organizations in the healthcare industry who have concerns they may not be complying with all applicable OSHA standards – and may be exposing themselves to reports of OSH Act violations – are advised to download and review our OSHA compliance checklist. Due to the crossovers between OSHA regulations, HIPAA regulations, and CMS Medicare regulations, it is also recommended to seek advice from a healthcare compliance professional.
