As if employers don’t already have enough to deal with these days—thanks in large part to a faltering economy—some new developments, including big financial incentives or employees to blow the whistle and a new whistleblower protection law, should cause many to watch their backs.
First, the IRS is publicizing a program to pay folks to turn informant on tax scofflaws. If the IRS uses information provided by the whistleblower, it can award the whistleblower up to 30 percent of the additional tax, penalty and other amounts it collects.
Two types of awards are available from the IRS. First, if the taxes, penalties, interest and other amounts in dispute exceed $2 million, and a few other qualifications are met, the IRS will pay to the whistleblower 15 percent to 30 percent of the amount collected. (If the case deals with an individual, his or her annual gross income must be more than $200,000.) Second, where the $2 million threshold isn’t met or in individual case where the income is lower than $200,000, the maximum whistleblower award is 15 percent up to $10 million. Not hard to see how an employee might be enticed to turn in an employer that’s late in paying your payroll or other taxes.
Find out more information on the IRS awards »
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Download our sample Whistleblower Policy and Employee Complaint Form today.
In addition to the IRS payment program, there a new law on the books, the Consumer Product Safety Improvement Act of 2008 (CPSIA), which will encourage more employee informants. The CPSIA, in effect now, is a major overhaul of overhaul of the existing Consumer Product Safety Act. Among other things, the new law bans phthalates (plasticizers) and lowers allowable lead levels in children’s products. And, it protects employee whistleblowers at every level of the retail sales chain.
In particular, the CPSIA prohibits a manufacturer, private labeler or distributor, or retailer from discharging an employee or discriminating against an employee with respect to compensation or terms, conditions, or privileges of employment because that employee did any of the following:
- Provided (or caused to be provided or is about to provide) to the employer, the federal government, or a state attorney general information the employee reasonably believed to be related to any violation of, or any act or omission the employee reasonably believes to be a violation of the CPSIA, the Consumer Product Safety Act, or any other law enforced by the Consumer Product Safety Commission, or any order, rule, regulation, standard, or ban under any of these laws.
- Testified or is about to testify in a proceeding concerning any such violation.
- Assisted or participated or is about to assist or participate in such a proceeding.
- Objected to or refused to participate in any activity, policy, practice, or assigned task that the employee reasonably believed to be in violation of the CPSIA or any other law enforced by the Consumer Production Safety Commission, or any orders, rules, regulations, standards, or bans under such laws.
If OSHA, the federal agency charged with enforcement, finds a violation, it can order reinstatement, compensatory damages, and attorney’s fees. Click here for more information on the Consumer Product Safety Information Act and other whistleblower laws enforced by OSHA.
Sample Forms and Policies At Your Fingertips
The obvious way to protect yourself from agency investigations and lawsuits stemming from whistleblower complaints is to take pains to ensure that your organizing is following the law. But sometimes even that’s not enough to keep the government off your back.
That’s why it’s important to assemble and implement a comprehensive employee complaint program so you can head off problems early. And we’ve got the tools to get your started. Just download our sample Employee Complaint Form and sample Whistleblower Policy, and tailor them to your organization’s needs.
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