Pennsylvania

When you witness someone in a position of power and authority committing a wrongful action, it may seem easier to let the situation slide than to call out the bad behavior. However, wrongful actions that occur within organizations can be very serious, especially when state funding is involved, so it is always in your best interests to report the wrongdoing.

If you have information regarding an injustice you witnessed within your company that receives funding from the Pennsylvania state government, talk to one of our qui tam attorneys. The legal team here at Tycko & Zavareei LLP can help you understand the Pennsylvania whistleblower laws that can help protect you if you decide to report the wrongdoing through official channels. By doing so, you could even be eligible for a financial award. Learn more about the law and how our firm can help you below.

The Federal False Claims Act

The federal False Claims Act prohibits any person or company from knowingly submitting a false claim to the government for undue funds. This law allows any individual in Pennsylvania, or elsewhere in the United States, who witnesses fraud involving federal funds to file a whistleblower claim, or qui tam lawsuit, for a potential reward.

Under the federal False Claims Act, false claims filed in Pennsylvania might include:

• Billing the government for services that were never rendered
• Double billing
• Failure to report overpayment of benefits
• Misrepresenting the costs of a government funded procedure or contracted project
• Kickback schemes

All of these fraudulent behaviors lead to financial loss for taxpayers who help fund government programs. That is why the federal False Claim Act states that any person found in violation of this Act will be liable for up to three times the government’s total losses, plus a penalty. The whistleblower whose information leads to a successful qui tam claim can collect a percentage of the government’s recovered funds, usually between 15 and 30 percent.

Whistleblower successes can be quite substantial depending on the type and scope of fraud that is reported. In fact, recent statistics show that settlements and judgments under the federal False Claims Act exceeded $2 billion in 2022.

Dodd-Frank Act

Another federal law that regulates whistleblower claims in Pennsylvania is the Dodd-Frank Act. This important federal legislation was passed in 2010 to help address widespread financial fraud. As part of this law, whistleblowers who come forward to report securities or commodities violations, foreign corruption allegations, or other financial fraud claims can receive a financial reward of between 10 and 30 percent of any settlement reached in a successful claim.

This law also provides specific protections to whistleblowers who report financial fraud. Specifically, retaliatory actions by an employer against an employee for making a protected whistleblower disclosure are illegal under the Dodd-Frank Act.

Pennsylvania’s Whistleblower Law

Pennsylvania has its own legislation to help protect whistleblowers who come forward with information about defrauded public funds. Under Pennsylvania’s Whistleblower Law, state and local government employees who make good faith reports about fraud, abuse, and waste involving government finds will be protected from employer retaliation.

Specifically, employers in Pennsylvania are barred from taking the following retaliatory actions against employees who blow the whistle on fraud:

• Termination
• Cutting pay
• Cutting hours
• Reducing work responsibilities
• Demotion
• Denying a promotion or overtime

While these laws are in place, the COVID-19 pandemic revealed a concerning lack of whistleblower protections in Pennsylvania. Since then, lawmakers have been working hard to ensure that whistleblower protections are upheld across the state.

Allegheny County False Claims Act

In addition to both federal and state protections, certain counties in Pennsylvania also have their own municipal laws and regulations. In Allegheny County, for instance, whistleblowers are offered an additional level of support through the Allegheny County False Claims Act.

Under this law, whistleblowers who witness violations of the law can submit a civil complaint to the county solicitor. The solicitor will then decide whether to proceed with an investigation into the situation. If a successful claim is later filed with the county’s action, the whistleblower would be afforded up to 25 percent of the settlement award. If the county solicitor declines to take action and the whistleblower proceeds with a claim on their own, the whistleblower could be entitled to up to 30 percent of the overall settlement.

Philadelphia False Claims Ordinance

Philadelphia also has its own whistleblower laws. Under the Philadelphia False Claims Ordinance, whistleblowers who have information about fraudulent activity can submit a formal civil complaint to report the wrongdoing. This complaint should be submitted to the city solicitor.

From there, the city solicitor decides whether or not to pursue the claim. If the city does take on the issue, the whistleblower can receive up to 25 percent of the settlement award. If the city does not pursue the claim further and the whistleblower pursues a claim on their own, they can receive up to 30 percent of the overall settlement.

How to Utilize Pennsylvania Whistleblower Laws to Your Advantage

Do you believe that you have witnessed fraudulent behavior within your workplace that could fall under the scope of Pennsylvania’s many whistleblower laws? If so, consider learning more about the typical whistleblower journey before taking action.

In order to receive the protections and benefits of Pennsylvania’s whistleblower laws, you will need to report the wrongdoing in accordance with the law. This usually includes filing a whistleblower claim through a qui tam law firm. If you do not follow the right channels and procedures when reporting fraud in Pennsylvania, you might forfeit your whistleblower rights and protections.

To ensure your rights are upheld and protected every step of the way, work with a qualified qui tam lawyer at our firm.

Taking the Next Steps Toward Justice

While taking the next steps toward justice, you want to be sure that you choose the right law firm to represent your claim. Since whistleblowing is a serious matter that could lead to professional or personal consequences without the protection of the law, you want to make sure you have the best legal representative by your side.

To do this, make sure you hire a lawyer with specific experience handling whistleblower claims in Pennsylvania. Check out the firm’s past case results and reviews before scheduling a meeting.

Why You Should Report Fraud in Pennsylvania

Are you considering whether it is worth your time and effort to blow the whistle on fraud taking place in Pennsylvania? The financial rewards from successful whistleblower claims are often pretty substantial. In one recent whistleblower case involving an online pharmacy, the whistleblower received 21% of a $5.7 million False Claims Act settlement.

Do You Have Information about Fraud in Pennsylvania?

Are you considering taking the next steps toward justice after witnessing a wrongful action by your organization in Pennsylvania? If so, then our qui tam attorneys here at Tycko & Zavareei LLP can help you make an informed decision on how to move forward with your information.

Consider leaving your contact information on our site to schedule a confidential case evaluation with our team today.