As we reported earlier this year, there is a split among the federal courts as to whether the whistleblower provisions of the federal False Claims Act (FCA) prevent retaliation against former employees. A bill (S. 2428) approved recently on a bipartisan vote by the Senate Judiciary Committee would, among other provisions, resolve this split by amending the FCA to cover both former and current employees.
While S. 2428 does enjoy some bipartisan support – its primary sponsor is Republican Senator Chuck Grassley – no similar legislation has been introduced in the U.S. House of Representatives, and to this point the Democrat leadership in the House has shown little interest in False Claims Act reform. Having said that, if the full Senate should ultimately approve the bill, it would not be a surprise to see the House go along.
We should note, however, that S. 2428 as approved by the Judiciary Committee contains some other and more controversial provisions that are opposed by industry groups and their Senate Republican allies, complicating its prospects.
Members of the Center for Workplace Compliance (CWC) can read more here.