In US employment law, a whistle blower is an employee who reports illegal activities of the employer. Various acts and statutes afford protection to the whistle blower against employer retaliation. Special whistle blower acts also protect specific groups such as federal government employees and members of the military. Collectively these are called whistle blower laws. From the investor’s perspective, a credible whistle blower may signal that there are serious management issues at a firm which could create significant liabilities. The whistle blower, however, is typically protected even if the allegation proves false, as long as the whistle blower believed the reported activity was illegal. Whistle blower claims that come to light must therefore be evaluated with care. The term whistle blower is sometimes written as one word, whistleblower. |
