State and federal statutes protect employees who report evidence of fraud or wrongdoing from retaliation. These employees who alert government authorities to wrongdoing are sometimes referred to as whistleblowers and the laws that protect them from retaliation are known as whistleblower laws.

For example, the Whistleblower Protection Act of 1989 is a federal statute that protects federal government employees who report possible wrongdoing from retaliation. See 5 U.S.C. §2302(b)(8). Whistleblowers are required to submit information and documents to support their claims, and may be subject to criminal prosecution for making a false claim.

And employees of manufacturers, private labelers, distributors, and retailers are protected from retaliation by their employers for disclosing activities related to the violation of the federal consumer product safety law. See 15 U.S.C. §2087.

Whistleblower laws vary from state to state and in the federal system—and with the nature of the wrongdoing or illegal activity reported—but generally involve the protected disclosure by an employee of:

• the violation of any state or federal law, rule, or regulation;

• fraudulent billing of a state or federal governmental entity for goods or services;

• gross mismanagement of a state or federal contract or grant;

• gross mismanagement;

• gross waste of funds;

• abuse of authority;

• substantial and specific danger to public health or safety.

In Texas, whistleblowers are protected under both state and federal statutes. State protections are outlined in the Texas Whistleblower Act, which safeguards public employees who report legal violations or malfeasance by their employer to an appropriate law enforcement authority. This act is found in Texas Government Code, Chapter 554. It prohibits retaliation against employees who in good faith report a violation of law by their employer to an appropriate law enforcement authority. At the federal level, statutes like the Whistleblower Protection Act of 1989 protect federal employees who report wrongdoing, and specific laws like 15 U.S.C. §2087 protect employees in the consumer product industry from retaliation for reporting legal violations. Whistleblower laws generally cover reporting of state or federal legal violations, fraudulent billing, gross mismanagement, waste of funds, abuse of authority, or threats to public health or safety. Whistleblowers are encouraged to provide evidence to support their claims and must be cautious as false claims can lead to criminal prosecution.