Workmans’ Comp & Whistleblower Claims

March 16, 2025

By Promting Justice

Employees have the fundamental right to a safe and healthy work environment, irrespective of their role or position. This is not merely a goal. It is a legal requirement under the Occupational Safety and Health Act of 1970, which the United States Department of Labor enforces. The legislation ensures that employers maintain a workplace devoid of known hazards that could jeopardize employees’ health and safety. Despite this regulatory framework, companies remain liable for safety infractions. If an employee witnesses any violation of health and safety regulations or identifies possible breaches of workers’ compensation, they have the right to act by submitting a whistleblower claim. If you need further information about whistleblower claims or have concerns about workplace safety in Vermont, New Hampshire, or Florida, contact the knowledgeable workers’ compensation attorneys at Shillen Mackall Seldon & Spicer. To schedule a consultation, call (802) 457-4848.

What Is a Whistleblower?

According to the National Whistleblower Center (NWC),  a “whistleblower” is an individual who reports insider information about illegal activities taking place within an organization. This often includes employees who become aware of misconduct through direct observation or other means. Whistleblowers play a critical role in exposing wrongdoing and ensuring accountability within companies. Different regulatory organizations focus on various types of illegal activities. For instance, the Occupational Safety and Health Administration (OSHA) is primarily concerned with enforcing workplace safety and health standards, including addressing environmental and safety violations. When a workplace is identified as hazardous, OSHA encourages employees to take several proactive steps to report and address safety concerns effectively. These steps include:

  • Filing an Anonymous Complaint: Employees can submit complaints without revealing their identity, allowing them to report unsafe conditions without fear of retaliation. 
  • Requesting an Inspection: Workers may formally request an OSHA inspection of their workplace to investigate reported hazards and ensure compliance with safety regulations. 
  • Pointing Out Workplace Hazards: Employees are encouraged to identify and document specific hazards, such as unsafe machinery, toxic substances, or inadequate safety measures.
  • Describing Injuries and Illnesses: Employees must report any injuries or illnesses due to workplace hazards, providing detailed accounts to help OSHA understand the extent of the problems. 
  • Discussing Workers’ Complaints: Employees should voice their concerns about workplace hazards and share complaints with supervisors or safety committees, fostering a culture of safety and awareness around potential risks.

What Actions Can Result in a Whistleblower Complaint?

When an employer engages in retaliation against a whistleblower, this can result in a legitimate complaint. Retaliation typically manifests in various forms, including: 

  • Termination of Employment: This is the most severe form of retaliation, where the employer dismisses the employee solely for reporting misconduct or unsafe practices. This type of action can be detrimental not only to the individual but also to the overall workplace environment.
  • Demotion: An employer may respond to whistleblowing by demoting the employee, effectively reducing their position or responsibilities as a punitive measure. This can significantly impact the employee’s career growth and professional reputation. 
  • Reduction in Pay: Employers may retaliate by decreasing an employee’s salary. This financial penalty can create undue hardship for the individual and discourage others from reporting wrongdoing. 
  • Denial of an Anticipated Raise: If an employee is expecting a raise and their employer denies it in retaliation for whistleblowing, it is an implicit threat that speaking out can have financial repercussions. This can diminish morale and trust within the team. 
  • Unfounded Negative Performance Evaluations: Employers might fabricate or exaggerate negative performance evaluations to retaliate. This can tarnish the employee’s professional reputation and hinder their career advancement opportunities. 
  • Threatening to Report Non-Citizen Employees: In some cases, an employer may threaten to report a non-citizen employee to Immigration and Customs Enforcement (ICE) as a form of intimidation. This tactic creates a hostile work environment and can have severe consequences for the affected individuals. 
  • Any Other Action Affecting Employment Terms: Retaliation can take many forms beyond those listed, including changes to work hours, increased scrutiny of the employee’s work, or fostering a hostile or unsupportive work environment. Any action that negatively impacts the employee’s working conditions can be considered retaliation.

To better understand what actions constitute retaliation and can result in a whistleblower claim, contact an experienced workers’ compensation lawyer at Shillen Mackall Seldon & Spicer. Our skilled legal professionals can review your questions and discuss the legal steps you may be able to take next.

Common Workers’ Compensation Violations

Whistleblower claims can address various issues beyond unsafe working conditions. A key concern involves violations of workers’ compensation regulations. Employees are entitled to report when their employers do not meet legal obligations regarding workers’ compensation insurance. For instance, a whistleblower might disclose that a business lacks mandatory workers’ compensation insurance, which is required in numerous states. This absence of coverage endangers employees and fails to comply with state laws to safeguard their rights during work-related injuries.

Additionally, whistleblowers can highlight unethical practices, such as the misclassification of employees. In certain situations, a company may incorrectly classify workers to avoid making the correct contributions to the workers’ compensation insurance fund. This can involve designating employees as independent contractors rather than actual employees, significantly reducing the employer’s contributions to the system. Furthermore, some businesses may report lower payroll figures to reduce their workers’ compensation premiums. By providing inaccurate payroll information, they jeopardize the workers’ compensation program, potentially risking the safety and assistance available to injured workers. Reporting such misconduct helps ensure that all employees receive the legal protections to which they are entitled.

Whistleblower Complaints Do Not Grant Total Immunity

Filing a whistleblower claim does not grant an employee total immunity from all actions that the employer may take. While whistleblower protections are in place to shield employees from retaliation related to their complaints, employers still have the right to address performance issues or behavioral concerns that are independent of the claims made. For example, if an employee submits a whistleblower complaint regarding unsafe working conditions, this does not prevent the employer from taking disciplinary action for other legitimate reasons. If that same employee has a pattern of habitual tardiness or consistently fails to meet job responsibilities, the employer could legitimately terminate their employment based on those specific performance issues, provided the decision is not influenced by the whistleblower claim itself. 

Contact Shillen Mackall Seldon & Spicer Today To Learn More

Filing a whistleblower complaint is a significant decision with important consequences. Due to the challenges involved, it is important for individuals to thoroughly explore their options. To learn more about workers’ compensation and whistleblower claims in Vermont, New Hampshire, and Florida, contact an experienced workers’ compensation attorney at Shillen Mackall Seldon & Spicer by calling (802) 457-4848.

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