What Whistleblower Protections Exist for Employees of Defense Contractors and Subcontractors?

Every year, the federal government spends more than $800 billion on the defense budget, and much of that money goes to contractors. With that type of budget and so many specific needs, some contractors are tempted into padding their invoices when they sell products and services to our armed forces. However, there are federal laws in place specifically to combat this type of fraud. 

Employees who have cited illegal or unethical behavior have faced threats, termination, demotion and other adverse employment actions. This is barred by law. Enhanced whistleblower protections established in the National Defense Authorization Act for 2013 (NDAA), and supplemented since then, safeguard employees of defense contractors, subcontractors and grant recipients who report misconduct that they notice on the job. Specific forms of misconduct that can activate this protection against reprisal include the following:

  • Violations of federal law, rules or regulations

  • Gross mismanagement or waste of government funds

  • Abuse of authority related to a Defense Department contract

  • Substantial dangers to public safety or health

When a worker is subjected to retaliation for reporting wrongdoing, they have the right to file a complaint with the Defense Department’s Inspector General within three years of the adverse job action. Reports can also be made to members of Congress, the Government Accountability Office, grand juries and Department of Justice officials. The NDAA authorizes various remedies to whistleblowers, such as reinstatement of employment, back pay, compensatory damages and legal fees to help make the whistleblower whole again. Depending on the circumstances of the case, the whistleblower may be entitled to a monetary award for their diligence. This could be as much as 30 percent of the funds recovered by the government as a result of the employee’s report. 

If you are an employee of a defense contractor, subcontractor or grant recipient and have witnessed fraud against the government, understanding your rights under the NDAA is essential. Whistleblowing is a courageous act, and neither your employer nor the government is permitted to retaliate against you for your honesty. In the event that you were fired, demoted or otherwise punished, Kardell Law Group is here to help. Our firm has extensive experience successfully representing whistleblowers in cases involving fraud against the government and other forms of malfeasance.