Sweeping New Whistleblower Law May Cover All Employers Who Receive Stimulus Funds

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The economic stimulus bill (titled the American Recovery and Reinvestment Act of 2009, or “the Act”) was passed by Congress on February 12, 2009 and signed into law by President Obama on February 17, 2009. With little public notice, the Act adopted new whistleblower protections for employees of private employers and state and local governments who disclose waste, fraud, gross mismanagement, or a violation of law related to stimulus funds. Employers who receive funds made available by the stimulus bill should become familiar with the Act’s broad whistleblower protections, for the purpose of minimizing their exposure to whistleblower claims.

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