Government Contracts Monitor

New Whistleblower Protections for Employees of Government Contractors and State and Local Governments

March 13, 2009

The economic stimulus bill that was passed by Congress on February 12, 2009 (the American Recovery and Reinvestment Act of 2009, “ARRA”) includes new whistleblower protections introduced by Sen. Clair McCaskill (D-MO) to prevent fraud in the use of stimulus funds (“McCaskill Amendment”).  

 Specifically: 

 

• The McCaskill Amendment protects employees of private contractors, state and local governments, and other non-Federal employers who receive a contract, grant or other payment from the stimulus funds.  (Federal employees are not covered.)  

• Employees are protected from retaliation (including discharge, demotion, or other discrimination or reprisal) for disclosing information they reasonably believe is evidence of any of the following with respect to stimulus funds: (1) gross mismanagement; (2) gross waste; (3) substantial and specific danger to public health or safety; (4) abuse of authority; or (5) violation of law, rule or regulation.

• An employee who believes he or she has suffered retaliation for a protected disclosure, must file a claim with the appropriate inspector general.  Once the employee has exhausted all such administrative remedies, the employee may file a de novo action in federal district court, which may be tried by a jury at the request of the employee or employer.    

• Any employer receiving covered funds must post notice of employee rights and remedies under these new whistleblower provisions.

The McCaskill Amendment is included in the ARRA at Division A, Title XV, Section 1533