Kitzer Rochel Is a Voice for Whistleblowers Reporting Paycheck Protection Program (PPP) and Other COVID-19 Funding Fraud

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Our firm knows that some recipients of PPP funding, or other CARES Act funding, have not complied with the law. These companies are abusing taxpayer dollars and harming small businesses that really need the limited funding. And they are breaking the law. 

Federal laws prohibit retaliation against workers, employees, executives or anyone else who blows the whistle on employers who defraud the Paycheck Protection Program (PPP) run by the Small Business Administration (SBA). And some statutes offer monetary rewards for turning in wrongdoers.

For example, under the False Claims Act (FCA), the government may reward a PPP whistleblower with up to 30 percent of the recovered funds.

  • Are you concerned about possible fraud regarding the SBA’s Paycheck Protection Program (PPP)?
  • Are you an executive or employee of a company that misrepresented payroll numbers in order to get a PPP loan?
  • Do you have information that your employer has misused an SBA loan or PPP funds? This could include spending more than 40 percent of a PPP loan on non-payroll expenses, or other examples.
  • Do you have information or concerns about other, similar practices?
  • Have you been warned to stay quiet about such fraudulent practices?

If you’ve witnessed PPP fraud and want to speak up, there are laws that may protect and even reward you. Contact Kitzer Rochel today to learn more.

Governor Walz’s Recent COVID-19 Order Gives Employees Important Rights

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On May 13, 2020, Minnesota Governor Tim Walz issued Executive Order 20-54, in response to the COVID-19 pandemic crisis. Among other things, the Governor’s executive order provides rights to Minnesota employees that all workers should be aware of.

First, the executive order prohibits employers from discriminating or retaliating against employees who ask their employers questions or expresses concerns about COVID-19 (the Coronavirus), or their health and safety regarding the virus outbreak.

Second, the executive order generally prohibits employers from discriminating or retaliating against employees who wear gloves, cloth, eye protection, or other protective gear in the course of their work.

Third, the executive order gives employees the right to refuse to work under conditions that they, in good faith, reasonably believe pose an imminent danger of death or serious bodily harm.

Fourth, the executive order gives employees the right to request the Minnesota Department of Labor and Industry (“DLI”) conduct an inspection of their workplace if they suspect a COVID-19 threat to health and/or safety is present.

Lastly, the executive order gives employees the right to seek reasonable accommodations related to COVID-19, including the ability to work from home, if possible.

All of these protections contain important caveats, so if you have questions about Executive Order 20-54, or COVID-19 at work, you should contact an experienced employment lawyer.

If you are an employee who has experienced difficult circumstances with your employer related to COVID-19, we are here to help. Please contact Teske, Katz, Kitzer, and Rochel, PLLP. We advocate on behalf of employees facing discrimination, retaliation, and whistleblower related issues in the workplace.

Can A Whistleblower Keep Work Documents If She Is Terminated?

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Employees who report illegal conduct by a company may be whistleblowers. A whistleblower may be entitled to substantial monetary awards for reporting fraud and is generally protected from retaliation. If whistleblowers do experience retaliation, they may have additional legal claims.

Frequently, when an employee discovers fraud at work or by their employer, they may seek to copy or retain documents to prove the fraud or seek legal advice. There are many documents that may be relevant, even necessary, to prove a whistleblower claim. Emails, invoices, statements, letters, or many other types of documents could show that a company acted unlawfully and may be able to prove a whistleblower claim.

However, the law is complicated regarding what information a current or former employee may be allowed to retain or copy. First, most employees have some type of agreement prohibiting them from keeping company information (which is typically defined very broadly and could include nearly any company document). Employees should always review any agreement they signed to understand their obligations. If an employee keeps documents they are not allowed to have, they could potentially be sued by their employer.

Second, state and federal law may prohibit employees from making copies or retaining certain categories of documents. Examples include trade secrets or communications protected by the attorney-client privilege. There are many more examples and the law in this area is complex.

While there are many agreements and laws that limit what documents or information employees are allowed to retain, whistleblowers have special protections. One example includes the “whistleblower immunity” contained in the U.S. Defend Trade Secrets Act of 2016 (“DTSA”). The DTSA contains an express carve-out for whistleblowers who disclose trade secrets to attorneys for the purpose of seeking advice about potential whistleblower claims. Under the right circumstances, an employee cannot be liable under the act for doing so.

One of the bill’s sponsors, Senator Charles Grassley, explained: “Too often, individuals who come forward to report wrongdoing in the workplace are punished for simply telling the truth. The amendment I championed with Senator Leahy ensures that these whistleblowers won’t be slapped with allegations of trade secret theft when responsibly exposing misconduct. It’s another way we can prevent retaliation and even encourage people to speak out when they witness violations of the law.”

At the same time, employees must be very careful about what information they retain, the manner in which it is retained, and to whom they disclose any such information. We strongly encourage employees and whistleblowers to seek legal advice from an experienced attorney before taking any action or retaining any documents that could be protected, trade secret, confidential or the like. If you have questions or would like to learn more, contact us today.