North Carolina Whistleblower Law Explained

North Carolina has a robust whistleblower law in place to protect employees who report wrongdoing or unethical behavior in the workplace. This law is found in the North Carolina General Statutes, Chapter 143, Article 22.

The North Carolina Whistleblower Law prohibits retaliation against employees who report wrongdoing, including termination, demotion, or reduction in pay. This protection applies to all public employees, including state, county, and city employees.

To be eligible for protection under the North Carolina Whistleblower Law, an employee must report wrongdoing to the proper authorities, such as a supervisor, human resources, or a government agency. This report must be made in good faith, meaning the employee must genuinely believe the wrongdoing occurred.

The North Carolina Whistleblower Law also requires employers to have a written policy in place that outlines procedures for reporting wrongdoing and protecting employees who make such reports.

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The North Carolina False Claims Act (NCFCA) is a reconstituted version of the federal law, so if you've read or learned about the FCA, the NCFCA will feel familiar. It's essential to understand that many programs may involve both state and federal funds, and therefore fraud may violate both state and federal FCA laws.

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The NCFCA imposes a fine of between $5,500 and $11,000 and treble damages for each violation of the law. Treble damages mean that if you're found guilty, you'll have to pay three times the amount of damages sustained by the state due to your actions.

The law also gives the court the power to reduce and limit the penalties for violations if certain requirements are met. To qualify for reduced penalties, the defendant must meet the following requirements:

If you violate the North Carolina False Claims Act, you could face some serious penalties. The law punishes violators with a fine and treble damages, which is three times the amount of damages sustained.

The fine can range from $5,500 to $11,000 per violation, and the treble damages can be substantial. For example, if a contractor knowingly defrauded the state of $1,000 per week for a year, the damages would be $156,000, plus the fine.

In extreme cases, the total penalty can exceed $500,000. However, most cases are resolved before trial, and the court may reduce the penalties if certain requirements are met.

To qualify for reduced penalties, the defendant must cooperate with the state investigation, provide all relevant information, and meet other specific requirements. If the defendant meets these conditions, the court can reduce the damages to at least twice the amount sustained by the state.

Here's a summary of the possible penalties:

The Government Accountability Project (GAP) is taking a bold stance against North Carolina's anti-whistleblower law, filing a federal lawsuit to challenge its constitutionality. The law is designed to punish those who conduct undercover investigations of private entities in the state.

This law is one of the most egregious attempts to silence whistleblowers in GAP's 38-year history. It's written so broadly that it could target truth-tellers across all corporate sectors, not just agriculture.

GAP is fighting back against this legislation, citing its chilling effect on whistleblowers who intend to expose atrocities to animals, threats to food, harm to workers, and potential dangers to the environment. The law violates citizens' rights to free speech, a free press, and to petition their government, and it attempts to bully and threaten those working for transparency, free speech, and the public good.

The lawsuit is being brought for the sake of the health and safety of all citizens of North Carolina. If the state's new anti-whistleblower law had been in place, evidence of horrific food safety abuses at Food Lion would not have been possible, and the company would not have been held accountable.

Here are some key points about the North Carolina False Claims Act, which is related to this situation:

The North Carolina False Claims Act allows whistleblowers to receive a percentage of the proceeds of the action or settlement of the claim, depending on the extent to which they contributed to the prosecution of the action.

North Carolina law protects state employees who report improper government activities, including violations of state or federal law, gross mismanagement, and gross waste of monies. This protection is outlined in N.C. Gen. Stat. § 126-84 to 126-88.

State employees are encouraged to report these activities to their supervisor, department head, or other appropriate authority. No supervisor or head of a state department or agency can retaliate against an employee for making such a report.

Retaliation against a whistleblower is forbidden under the North Carolina False Claims Act, which protects whistleblowers who are discharged, demoted, suspended, threatened, harassed, or otherwise suffer discrimination as a result of lawful actions taken under this statute.

A whistleblower who suffers retaliation may be entitled to two times the amount of back pay, interest on that back pay, and compensation for any special damages they suffered as a result of the discrimination. They also have the right to be reinstated with the same seniority status they had before.

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Here are the key protections for whistleblowers in North Carolina:

Whistleblower compensation under the North Carolina False Claims Act can be a complex process, but it's essential to understand the potential rewards. If the state pursues the case successfully, the whistleblower can receive 15-25% of the proceeds of the action or settlement of the claim.

The amount of compensation varies based on the extent to which the whistleblower contributed to the prosecution of the action. If the court finds a successful case to be based primarily on information other than that supplied by the whistleblower, they may be awarded a sum not to exceed 10% of the proceeds.

If the state chooses not to pursue the action, and the whistleblower's claim succeeds, they can receive between 25-30% of the proceeds. The whistleblower can also receive an amount for "reasonable expenses" that the court believes were necessary, plus reasonable attorney's fees and costs.

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Here's a breakdown of the potential compensation:

If the court finds that the whistleblower planned and initiated the fraud on which the case was brought, it's at the court's discretion to reduce the proceeds given to the plaintiff as a result. This reduction can significantly impact the whistleblower's compensation.

The whistleblower will be dismissed from the action and receive no compensation if they are convicted of criminal conduct arising from their role in the fraud. This dismissal doesn't end the case, as the state may choose to proceed on its own.

A whistleblower can receive between 15-25% of the proceeds of the action or settlement of the claim if the state pursues the case successfully. However, if the court finds a successful case to be based primarily on information other than that supplied by the qui tam relator, the award may be reduced to 10% or less.

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Here are the possible award percentages for a whistleblower under the North Carolina False Claims Act:

These award percentages can vary depending on the extent to which the whistleblower contributed to the prosecution of the action.

You can file a whistleblower or retaliation claim in North Carolina through the North Carolina Department of Labor's Employment Discrimination Bureau (EDB) or by filing a lawsuit in an appropriate court.

The first step is to contact the North Carolina Department of Labor, Employment Discrimination Bureau (EDB) immediately at their phone number (1-800-NC-LABOR) or email address ([email protected]).

You generally have three years to file a claim for retaliation under the Retaliatory Employment Discrimination Act (REDA), and 180 days to file a written complaint with the EDB.

To file a lawsuit, you must obtain a right-to-sue letter from the EDB, which you can request after 180 days have passed since the filing of the complaint, unless the EDB has already filed a lawsuit on your behalf.

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If you believe you have a claim, you should contact a lawyer immediately to guide you through the process.

Here are the different options for filing a whistleblower or retaliation claim in North Carolina:

Note that the timeframe for filing a claim may vary depending on the specific circumstances of your case, so it's essential to consult with a lawyer to determine the best course of action.

The North Carolina Retaliatory Employment Discrimination Act (REDA) was passed in 1992 to provide certain workplace protections for employees.

REDA lists eleven statutes that are covered by the act, including wage and hour, workplace health and safety, and worker’s compensation complaints or claims.

Filing or threatening to file a complaint under one of these statutes is a protected activity under REDA.

Employers may not retaliate against employees who engage in good faith in these protected activities.

REDA also prohibits retaliation based on genetic testing, possessing the sickle cell trait or being a hemoglobin C carrier.

Additionally, REDA protects employees who participate in the National Guard, report pesticide exposure, or seek domestic violence protective orders.

You can determine if you may have a REDA complaint by clicking on the provided link.

The North Carolina False Claims Act (NCFCA) was passed in 2009 to govern fraud against the state government.

The NCFCA is often referred to as the NC Whistleblower Protection Act or the NC Whistleblower Act.

If you're considering blowing the whistle on a company or organization in North Carolina, it's essential to know your rights and the resources available to you. A whistleblower attorney can help you untangle the situation and fight to protect your best interests, including advising you on your possible outcomes.

You can file a whistleblower or retaliation claim in North Carolina by contacting the North Carolina Department of Labor, Employment Discrimination Bureau (EDB) immediately. You can reach them at 1-800-NC-LABOR (1-800-625-2267) or email [email protected].

The EDB will investigate the matter and then make a preliminary determination of whether there is reasonable cause to find that the discharge was unlawful. If they find that there is not reasonable cause, they will grant a right-to-sue letter, and you'll need to file a lawsuit. If they find that there is reasonable cause, they'll attempt to correct the violation through informal methods.

You have the right to request a right-to-sue letter after 180 days have passed since the filing of the complaint, unless the EDB has already filed a lawsuit on your behalf. To proceed with a lawsuit, you must file it in an appropriate court within 90 days of the date on which the right-to-sue letter was issued.

Here are the key deadlines and resources to keep in mind:

North Carolina has its own whistleblower law, which provides protection for employees who report improper government activities. This law is outlined in N.C. Gen. Stat. § 126-84 to 126-88 (1997).

State employees are encouraged to report evidence of activity constituting a violation of state or federal law, gross mismanagement, or a gross waste of monies. They can do so verbally or in writing to their supervisor, department head, or other appropriate authority.

State employees are protected from retaliation for reporting improper government activities. This means that they cannot be discharged, threatened, or discriminated against because of their report. N.C. Gen. Stat. § 126-85(a-b) specifically prohibits retaliation against state employees who report or are about to report improper government activities.

Retaliation against state employees is a serious offense. If an employee is found to have retaliated against a whistleblower, they may be subject to damages, reinstatement of the employee, payment of back wages, and other penalties. N.C. Gen. Stat. § 126-87.

The North Carolina General Assembly has also passed the Retaliatory Employment Discrimination Act (REDA), which provides additional protections for employees who report improper government activities. Under REDA, employees may not be discharged or discriminated against for filing a claim or complaint, initiating an inquiry or investigation, or providing information or testimony to any person concerning certain North Carolina laws.

Here is a list of protected activities under REDA:

These protections apply to public employees, including those who work for state agencies or departments. They also apply to teachers, who may not be discharged or discriminated against for alleging sexual harassment.