The position that a whistleblower holds when they report fraud or some other unlawful conduct can have a significant impact on their eligibility for a whistleblower reward. It is critical to assess this issue early on because it can make the difference between qualifying for an award or being deemed ineligible for an award. For example, a compliance officer who immediately reports a securities law violation to the Securities and Exchange Commission (SEC) may not qualify for an award, but if they report the violation internally and then wait 120 days to report it to the SEC, they could qualify for an award. And in some jurisdictions, the position or job duties of the whistleblower can trigger a heightened notice requirement.
By assessing early on the impact of a whistleblower’s position or job duties on their eligibility for a potential award and for whistleblower protection, counsel can enable the whistleblower to develop an effective strategy to maximize their recovery and enhance their ability to combat retaliation.
