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Keller Grover

Protecting Employees and Consumers

Keller Grover Recognizes National Whistleblower Appreciation Day

For more than a decade, the Senate Whistleblower Protection Caucus has led an effort to designate July 30 as “National Whistleblower Appreciation Day,” celebrating whistleblowers’ contributions and risking their livelihoods and reputations to combat legal and regulatory violations, waste, fraud and abuse in the United States.

The July 30 designation is no accident. The American tradition of supporting whistleblowers dates back to July 30, 1778. Just two years after the United States was founded, and before it had even won its independence from Great Britain, the Second Continental Congress on that date passed a unanimous resolution calling upon all public servants — and all Americans — to report public officials’ “misconduct, frauds or misdemeanors.”

A resolution to recognize July 30 in honor of whistleblowers, introduced by U.S. Senators Chuck Grassley (R-Iowa) and Ron Wyden (D-Ore.), co-founders and co-chairs of the caucus, has been passed unanimously by the Senate every year since 2013. It encourages each executive agency to recognize National Whistleblower Appreciation Day by:

  • Informing employees, contractors working on behalf of the taxpayers of the United States, and members of the public about the legal right of a United States citizen to ‘‘blow the whistle’’ to the appropriate authority by honest and good faith reporting of misconduct, fraud, misdemeanors, or other crimes.
  • Acknowledging the contributions of whistleblowers to combating waste, fraud, abuse, and violations of laws and regulations of the United States. 

In addition, Grassley has asked every president since Ronald Reagan to honor whistleblowers by hosting a Rose Garden ceremony on Whistleblower Appreciation Day. That celebration has yet to occur, but whistleblowers are deserving of such an honor for many reasons.

“The cornerstone of the United States’ government is accountability to the people it serves. Whistleblowers put their jobs and reputations on the line to uphold that bedrock principle. Our laws should empower their oversight and ensure they can come forward without fear of retribution,” Grassley said last year. “Protecting whistleblowers is good government, plain and simple, and that’s something we can all get behind.” 

“Whistleblowers are brave individuals who sound the alarm on fraud, waste, and abuse of public resources,” Wyden said last year. “It’s time for Congress to step up and support whistleblowers by strengthening laws that allow them to raise issues without fear of retaliation. Whistleblowers are the fail-safe for our government and I’ll fight tooth and nail to shore up protections that bolster our democratic institutions.”

At Keller Grover, we extend our support for National Whistleblower Appreciation Day and efforts to strengthen whistleblower law because whistleblowers make a sacrifice to speak up about wasteful spending and wrongdoing. Whistleblowers are often the only people able or willing to share information that can stop or expose a fraud, which is a view held not only by advocates like us but the federal government as well. For example: more than $2.3 billion of the $2.68 billion in False Claims Act recoveries last fiscal year came from whistleblower-initiated cases, nearly 86 percent.

Keller Grover provides confidential, free consultations to advise potential whistleblowers. If you suspect wrongdoing and have questions about your next steps, contact us today.

 

New Rules Help California Employees Pursue Retaliation Claims

For years, employees in California have struggled to get justice for workplace retaliation. That’s because workers couldn’t prove their employer’s actions were retaliatory — even if they were fired or demoted soon after they spoke up about problems in their companies. 

In fact, the legal standard was so difficult to meet that many employees decided it was better to stay silent. According to a 2022 survey of California workers, 38 percent had experienced a workplace violation, but only 10 percent of those workers filed a report with a government agency. Nearly half didn’t report it to anyone.

Fortunately, a recent update to California labor law is trying to change this dynamic. California SB 497, the Equal Pay and Anti-Retaliation Protection Act, puts more of the initial burden on employers to prove that firings, suspensions and other actions are not retaliation. 

SB 497 took effect in January 2024. It creates a prima facie, rebuttable presumption that an employer engaged in retaliation if it took action against an employee within 90 days of that employee engaging in a protected activity under Labor Code section 98.6 or the Equal Pay Act (Labor Code Section 1197.5), which forbids sex-based wage discrimination. 

Among other things, protected activity could include: 

 

  • Making a written or oral complaint over unpaid wages
  • Filing a bona fide complaint about other violations of your labor rights
  • Disclosing how much you make
  • Talking or asking about other workers’ wages
  • Helping or encouraging others to use these and other rights
  • Refusing to participate in an activity that would violate a state or federal statute
  • Testifying or providing information to a public body conducting an investigation, hearing or inquiry if the employee believes their information reveals a violation of law 


In addition to firings and suspensions, retaliation can take several forms, including a reduction in work hours, a demotion or some other negative action. 

Employers can challenge the presumption by showing they had a nonretaliatory reason for any adverse actions. The burden of proving retaliation would then fall back on the employee. 

This is still helpful for employees. Hearing their bosses’ justifications could give them a greater ability to challenge those arguments in court. It might also make employers think twice before retaliating against their workers. 

California’s labor code already allows for rebuttable presumptions in other types of cases, such as retaliation against workers who took paid sick leave or employers that threaten workers with deportation. 

SB 497 makes an important change in one other area: If an employer has to pay the civil penalty for retaliation, the money will go to the affected employee.

Under the law, if an employer engaged in retaliation, it can be assessed a civil penalty costing up to $10,000 per employee per violation. Thanks to SB 497, those funds will be given to the employees who suffered retaliation, not the state’s General Fund, where the money used to go. The state’s labor commissioner will determine the exact size of the penalty, based on the violation’s nature and seriousness, as shown in the evidence. 

And of course, workers can still press for reinstatement and reimbursement of lost wages and benefits, too.

Workplace retaliation can inflict significant harm on employees who have already suffered unfair treatment in the workplace. Loss of income, loss of opportunity, punitive work conditions — those are just some of the burdens that affected workers face. 

At Keller Grover, our team has decades of experience representing employees who were targeted for workplace retaliation. If you have been impacted, learn more about your options by contacting our firm for a free and confidential consultation. 

Pandemic Fraud Continues To Be Exposed With Whistleblower Help

Billions of dollars in pandemic-related fraud remains unresolved, and the government is relying on whistleblowers to enforce consequences for misuse of public funds. 

During the past fiscal year, the U.S. Department of Justice resolved about 270 False Claims Act matters tied to improper Paycheck Protection Program loans. The related settlements and judgments amounted to $48.3 million — the whistleblowers who stepped forward to expose these frauds received awards as provided for in the False Claims Act.

Resolution of more of these cases could go on for years. President Biden signed a law extending the statute of limitations on pandemic relief program fraud to 10 years. That includes civil and criminal fraud enforcement related to the PPP and the Small Business Administration’s COVID-19 Economic Injury Disaster Loan programs.

Recent judgments and settlements cross industries:

  • Victory Automotive Group Inc. agreed to pay more than $9 million over allegations that it misrepresented its business to get a PPP loan, which was later forgiven.
  • Coyne Public Relations LLC paid $2.24 million to resolve allegations that it received a PPP loan for which it was not eligible.
  • John Seasholtz and four of his agricultural companies agreed to pay more than $600,000 over charges of claiming more employees than they had. The companies also will repay certain loan funds, which the Small Business Administration had guaranteed for about $1.8 million.
  • The government similarly has pursued companies that helped businesses secure inflated payments.

The DOJ also has been pursuing other pandemic-related fraud, such as health care providers profiting from the crisis by billing the government for unnecessary tests and services.

Pandemic era fraud matters for all citizens. The public money was intended to provide relief amidst a crisis that required rapid distribution of funds. 

Whistleblowers — normal people who see wrong and have the courage to report it — play a key role in the government’s ability to recover this money. And the government rewards them; the False Claims Act allows them to be compensated 15 percent to 30 percent of the recoveries from successful cases.

In fiscal 2023, whistleblowers filed 712 qui tam suits, or lawsuits alleging false claims on behalf of the government.

Those who knowingly and falsely claim money from the United States, or knowingly don’t pay money owed to the government, face triple damages and penalties under the False Claims Act.

At Keller Grover, we feel strongly about helping whistleblowers protect the country against fraud and make sure public money gets to its intended beneficiaries. Through our confidential, free consultations, we can advise potential whistleblowers about the best path forward from the very beginning, helping minimize the impact of reporting, protect rights and achieve the best possible outcome for the situation. Our deep experience litigating both fraud and employment law makes us uniquely skilled to represent whistleblowers.

Nursing Home Fraud Persists But Whistleblowers Can Root Out Misuse of Government Funds

About a third of Americans who make it to their 65th birthdays will need nursing home care, according to the U.S. Department of Health and Human Services. In 2021, Medicare spent $92.6 billion on skilled nursing facility care and home health services.

Unfortunately, fraud is particularly problematic in nursing homes, where vulnerable patients live away from loved ones. When care is motivated by financial gain, it also puts patients’ lives at risk. 

Both the state and federal governments rely on whistleblowers to report these instances of abuse and fraud. New cases describing new schemes are reported weekly.

Just this month, multiple settlements were announced related to skilled care across the country.

  • On June 6, five people were arrested in Los Angeles on criminal charges tied to alleged operation of sham hospice companies that defrauded Medicare of more than $15 million. 
  • A long-term care management company from Massachusetts reached a $4 million settlement over allegations that it deliberately neglected to properly staff its nursing homes, causing harm and neglect to residents. 
  • A Georgia hospice facility will pay $1.4 million to resolve allegations of a kickback scheme to get more patient referrals.
  • A Connecticut company and its CEO will pay $4.6 million to resolve allegations of fraudulently and improperly submitting claims tied to telehealth services for nursing home residents.

And in May, a California-based nursing home chain reportedly settled a Medicare fraud lawsuit for $7 million.

Whistleblower laws such as the False Claims Act empower even a single principled healthcare worker to dismantle wide-ranging frauds. Generally, healthcare fraud involves deception to get paid by an insurer — in this case, often Medicare or Medicaid — for medical goods or services. It also can involve knowingly doing prohibited things, such as paying for patient referrals, while participating in a government healthcare program.

The U.S. Department of Health and Human Services Office of the Inspector General earlier this year outlined a series of key goals in its nursing home oversight:

  • To protect residents from fraud, abuse and neglect, and to promote high-quality care.
  • To promote emergency preparedness and response efforts.
  • To strengthen frontline oversight.
  • To support federal monitoring of nursing homes to mitigate risks to residents. 

Help address these problems and protect older Americans and their loved ones. If you suspect fraud or other abuses and want advice, Keller Grover’s experienced attorneys offer free and confidential consultations.  

Survey: California Hourly Workers Face Persistent Labor Law Abuses

California may be known for its progressive labor standards, but most hourly workers in the state routinely face labor law violations, and few report them, according to a new analysis.

Ninety-one percent of workers surveyed had experienced at least one type of violation at work during the past year. Forty-one percent had experienced a serious violation of the Fair Labor Standards Act (FLSA), such as working off the clock, not being paid required overtime, not being paid for all their work hours, receiving less than the minimum wage, or not being paid bonuses, tips or paid time off that they had earned.

The insights came from a survey this spring of more than 1,000 service-sector workers by researchers from the Shift Project, based at Harvard Kennedy School and the University of California-San Francisco.

“Based on our evaluation of survey responses, we find that the aspirations of California’s progressive labor standards are frequently undermined by widespread employer noncompliance with the basic requirements of FLSA, paid sick leave, paid rest break, and meal break mandates,” researchers wrote.

But what’s particularly problematic: Workers often put up with these violations because either they are unaware of their legal protections, or they don’t have an advocate who can help them both take action and avoid retaliation.

Here is a summary of common employment law violations and worker rights:

  • Less than a quarter of workers who described violations made a report, and most of the time they made the report to their own employer. Just 2 percent reported the violation to local, state or federal authorities.
  • More than half of workers who reported a violation said they faced some form of retaliation, such as fewer working hours, worse schedules or tasks, or even unsafe tasks.

All of these things are wrong — from the abuse to the retaliation, whatever form it may take. Based on this survey, it is very likely that an hourly worker you know has experienced mistreatment in the workplace. 

Keller Grover offers free and confidential consultations to advise workers of their rights, protections, and prudent next steps. In more than 25 years litigating fraud and employment cases, we have recovered hundreds of millions of dollars for clients and class members.

How can we take a stand for you?

Contact us now for a free and confidential case evaluation.