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Dodd-Frank Wall Street Reform And Consumer Protection Act (Part V)

On July 21, 2010, President Obama signed into law the Dodd-Frank Wall Street Reform and Consumer Protection Act ("WSRCPA"). This post is the fifth in a five-part series on the employment law provisions of the WSRCPA. This post examines Section 1079A of the WSRCPA, which amends the False Claims Act. The False Claims Act. The False Claims Act ("FCA") permits whistleblowers to bring a lawsuit ("a qui tam action") on behalf of the federal government against federal contractors who have committed fraud against the federal government. Whistleblower Reward Under The FCA. The whistleblower can recover between 15% and 25% of the monies collected by the government as a result of the qui tam action. Popular targets for FCA lawsuits have been defense contractors and those involved in healthcare fraud. FCA Protects Whistleblowers. The FCA protects employees, contractors and agents from threats, harassment, discrimination, demotion, suspension and discharge resulting from their attempts to stop violations of the FCA. Amendments To The FCA. Section 1079A of the WSRCPA amends the FCA to broaden the protections afforded whistleblowers involved in qui tam actions to include those "associated with" the whistleblower.  It also adds a three year statute of limitations. The Takeaway. Section 1079 is consistent with the other employment provisions of the WSRCPA which strengthen the protections of whistleblowers in the workplace.  GSF

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