Legal Definitions - whistleblower

A whistleblower is an individual, typically an employee or former employee, who reveals illegal, unethical, or improper activities occurring within an organization. These activities usually involve violations of public law, regulations, or actions that could cause significant harm to the public, investors, or the government. Whistleblowers often report this information to external authorities, such as law enforcement agencies, regulatory bodies, or government oversight offices, rather than solely relying on internal reporting channels. Federal and state laws provide protections to whistleblowers to prevent employers from retaliating against them for making such disclosures.

Here are some examples illustrating the role of a whistleblower:

• Scenario: An engineer working for a pharmaceutical company discovers that the company has been deliberately falsifying clinical trial data to make a new drug appear safer and more effective than it truly is, potentially endangering patients. Explanation: This engineer becomes a whistleblower by reporting the fraudulent data manipulation to the Food and Drug Administration (FDA). Their action exposes a serious public health risk and a violation of regulatory standards, and they would likely be protected by whistleblower laws against retaliation from their employer.
• Scenario: A financial analyst at a major bank uncovers a scheme where the bank is systematically creating "ghost accounts" to charge customers hidden fees, generating millions in illicit profits. Explanation: By reporting this deceptive practice to the Consumer Financial Protection Bureau (CFPB) or the Securities and Exchange Commission (SEC), the analyst acts as a whistleblower. They are exposing widespread financial fraud that harms numerous customers, and their disclosure would be protected under relevant statutes.
• Scenario: An administrative assistant in a municipal government department learns that their supervisor is regularly awarding lucrative city contracts to a company owned by a family member, despite that company being less qualified and more expensive than other bidders. Explanation: When the assistant reports this conflict of interest and potential corruption to the city's ethics commission or a state attorney general's office, they are acting as a whistleblower. They are exposing misuse of public funds and a breach of public trust, and laws would protect them from adverse employment actions.