irregularities. A company that refuses to do something about a reported illegal activity is guilty of tolerance (p. 16). In such cases, whistle blowing may be the most appropriate, and the most ethically prudent and justifiable action.
The federal Whistleblower Protection Act states that it is illegal for an employer to fire, threaten, or treat an employee differently because he or she reported an alleged violation of a law. Employees may report risks to someone's health or safety, refusal to do a job or perform some task they believe will endanger lives or health and safety. An employee cannot be punished for involvement in an investigation or hearing held by a government agency or entity. This federal protection only applies if the employee has reported the allegedly illegal activity to an outside agency, such as a regulatory or law enforcement agency. However, the employee may be protected under other laws – such as laws that make it unlawful for a company to fire an employee for complaining of sexual harassment or discrimination even if the problem is not reported outside of the company.
Employers and employees should know that is not necessary that an investigation prove that an employer actually broke the law for the federal whistleblower protection to apply. However, if the employee complains to someone inside the company, that is not whistle blowing, and the employee is not protected by the federal whistleblower law. There are also specific laws that are address certain areas of business. These laws themselves have provisions to protect whistleblowers. For example, individuals who expose public health and safety violations are covered under Clean Air, Toxic Substances, Safe Drinking Water, and Atomic Energy Acts. Steven Bahls (2003) writes in Entrepreneur that efforts to increase the accuracy of corporate financial reporting resulted in federal government offering protection to whistle blowers with the Public Co...