Accountability Report Card Summary 2013 Tennessee

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1 Accountability Report Card Summary 2013 Tennessee Tennessee has one of the strongest state whistleblower laws: Scoring 75 out of a possible 100; Ranking 3 rd out of 51 (50 states and the District of Columbia). Tennessee has good coverage (23 of 33 possible points) with an excellent degree of usability (32 out of 33) and strong remedies (20 out of 33). Tennessee s full Whistleblower Report Card page 2 Narrative summary of Tennessee law page 5

2 Tennessee Accountability Index Report card Coverage, Usability & Strength Rating on a 100 Point Scale Employment Practices- Tenn. Code Ann (2012). State Government- Tenn. Code Ann (2012) False Claims Tenn. Code Ann et seq (2012) Hazardous Chemical Right to Know Law - Tenn. Code Ann (2012) A Breadth of Coverage (33 points possible from 10 factors). Does the statute cover disclosures of Factor Maximum Points Awarded Points 1. Violation of state or federal law, 6 points 6 points 1 rules or regulations 2. Gross mismanagement 3 points 3 points 3. Abuse of authority (including 3 points 3 points violations of agency policy) 4. Waste of public funds or 3 points 3 points resources 5. Danger to health and/or public 5 points 5 points safety and/or environment 6. Communication of scientific 5 points 0 points opinion or alteration of technical findings 7. Breaches of professional ethical canons 5 points 0 points Does the statute provide 8. Employee may refuse to carry out illegal or improper orders 9. Prohibition on gag orders to prevent employee disclosures 10. Whistleblower protection does not preclude collective bargaining or other rights 1 point 1 point 2 1 point 1 point 3 1 point 1 points 4 Maximum Score 33 points Awarded Score 1 Public employee shall not face retaliatory action because the employee reports (A) a willful effort to violate a state or federal law, rule or regulation, or the willful efforts to conceal such a violation; (B) acts which constituted fraud against the state, the federal government, the public or any fellow employee; (C) the willful misappropriation of state or federal resources; (D) acts which posed a danger to the health or safety of the public or employees; or (E) acts constituting gross mismanagement of a program, gross waste of state or federal funds, or gross abuse of authority. T. C. A (b)(1). 2 T. C. A (b)(3). 3 No employer shall make, adopt, or enforce any rule, regulation, or policy preventing an employee from disclosing information to a government or law enforcement agency or from acting in furtherance of a false claims action, including investigating, initiating, testifying, or assisting in an action filed. T. C. A See also T. C. A (a) (stating the intent of the legislature to encourage disclosures). 4 Nothing in this section shall be deemed to diminish the rights, privileges or remedies of any employee under any other federal or state law or regulation. Tenn. Code Ann (g).

3 B. Usability: Scope of Protection (33 points possible from 10 factors) Do the laws protect disclosures made to 23 points Factor Maximum Points Awarded Points 1. Any person or organization, including public media 24 points 24 points 5 Or does the statute protect disclosures made to 2. Any state executive or legislative body or person employed by such entities 3. Testimony in any official proceeding 4. Any state or federal law enforcement or investigative body or entity or its employees 5. Any federal or non-state governmental entity 6. Co-workers or supervisors within the scope of duty 7. Anyone as provided in paragraphs 2 thru 6 (above) without prior disclosure to another state official or supervisor 4 points 0 points 4 points 0 points Does the state law 8. Require an investigation by state auditor or other investigative entity of whistleblower disclosures 9. Have a statute of limitations of one year or longer for filing complaints 10.Allow qui tam or false claim actions for recovery of bounty in cases of fraud against the state 1 point 0 points 3 points (2 points if 6 months or longer and 1 point if 60 days or longer) 5 points (2 points if a qui tam statute of limited scope) 3 points 6 5 points 7 Maximum Score 33 points Awarded Score 32 points 5 The statutes do not specify to whom a disclosure of illegal activities would be made. 6 Action must be brought within one year of the alleged retaliatory incident. T. C. A (c). 7 The False Claims Act allows for recovery of bounty. Tenn. Code Ann (2012).

4 C. Strength: Remedies against retaliation (33 points possible from 11 factors) Does the statute provide for Factor Maximum Points Awarded Points 1. Prohibition on retaliatory actions 4 points 4 points 8 affecting a state employee s terms and conditions of employment 2. Opportunity for administrative 4 points 0 points challenge 3. Opportunities for court challenge 4 points 4 point 9 4. Trial by jury 5. Burden shifting upon prima facie 1 point 1 points 10 showing. 6. Make whole remedies (court costs, 3 points 3 points 11 attorney fees, back pay; restoration of benefits, etc.) 7. Actual/compensatory damages 3 points 3 points 8. Interim relief, injunction or stay of 3 points 3 points personnel actions 9. Transfer preference for prevailing whistleblower or ban on blackballing 10. Punitive damages or other fines and penalties 2 points 2 points Personnel actions against managers found to have retaliated Maximum Score 33 points Awarded Score 20 points Bonus Point (1 point): Posting or employee notice of whistleblower rights required. Factor Maximum Score Awarded Score Posting 1 point 0 points 8 An employer may not recommend or act to discharge, demote, suspend, reassign, transfer, discipline, threaten or otherwise discriminate against a state employee regarding the state employee's evaluation, promotion, compensation, terms, conditions, location or privileges of employment in retaliation for that employee s protected disclosure. T. C. A (b). 9 T. C. A (c). 10 New statute: T. C. A , as added by 2011 Tennessee Laws Pub. Ch. 461 (H.B. 1641). 11 A court, in rendering a judgment in an action brought pursuant to this section, may order injunctive relief, actual damages, reinstatement of the employee, the payment of back wages, full reinstatement of fringe benefits and seniority rights, costs, reasonable attorney's fees or any combination thereof. T. C. A (d). 12 Willful or malicious violations may bring criminal sanctions and or triple damages. T. C. A (d)(3).

5 Total Points 100 Points 75 points July 29, 2012 State Legislation Protecting State Employee Whistleblowers State- Tennessee Statute- Employment Practices- Tenn. Code Ann (2012); State Government- Tenn. Code Ann (2012); False Claims Tenn. Code Ann (2012); Hazardous Chemical Right to Know Law - Tenn. Code Ann (2012) Provisions- Tennessee has three statutes which protect public whistleblowers. The State government code expresses the intent of the general assembly that state employees are encouraged to report violations of state or federal law or regulations, fraud in government programs, misappropriation of government resources, health and safety dangers, mismanagement, and abuses of authority. The statute also expresses the general assembly s intent that state employees be able to freely report to public bodies, including testifying before legislative panels, on issues of public concern. The statute protects whistleblowers from retaliation for reporting: violations of state and federal laws and regulations, fraud, misappropriation of resources, health and safety dangers, gross mismanagement, gross waste of government funds, or gross abuse of authority. Employees may not be retaliated against for refusing to carry out orders if the order violates state or federal law, regulations, written policy or procedure, or orders that pose an unreasonable health and safety risk. Supervisors may only take adverse personnel action against the whistleblower if they believe in good faith that the employee has been fraudulent, dishonest, or had a willful disregard for the truth in his or her disclosure. Employees must file an action in circuit or chancery court within one year of the alleged violation. Employees may seek actual damages, injunctive relief, reinstatement, payment of back wages, reinstatement of benefits, costs, and reasonable attorney s fees. For acts involving a willful or malicious violation of this statute, a criminal violation, or a violation in attempt to obtain personal gain, the court may award up to 3 times the actual damages. Employers, including state supervisors, agencies, departments, or institutions, are not liable if they took action in good faith pursuant to lawful orders or authority. The Employment Practices statute has a limited application. It applies to both public and private sector employees. The statute provides that no employee shall be discharged or terminated solely for refusing to participate in, or for refusing to remain silent about, illegal activities. Illegal activities means activities that are in violation of the federal and Tennessee civil or criminal code or any regulation intended to protect the public health, safety or welfare. Any employee terminated solely for refusing to participate in, or for refusing to remain silent about, illegal activities shall have a cause of action against the employer for retaliatory discharge and any other damages to which the employee may

6 be entitled. Any employee who prevails in such cause of action shall be entitled to recover attorney fees and costs. This statute should not be used for frivolous lawsuits. If an employee files a case for retaliatory discharge for any improper purpose, such as to harass or to cause needless increase in costs to the employer, the court, upon motion or its own initiative, shall impose upon the employee, an appropriate sanction, which may include an order to pay the other party or parties the amount of reasonable expenses incurred, including reasonable attorney s fees. The False Claims statute both serves to protect whistleblowers, by providing additional provisions which reiterate the protections from the previous two statutes, as well as providing for qui tam actions whereby the whistleblower may claim a percentage of the bounty recovered from a successful court action. Under The Hazardous Chemical Right to Know Law, Tenn. Code Ann , No manufacturing employer, non-manufacturing employer or distributor shall discharge, or cause to be discharged, or otherwise discipline or in any manner discriminate against an employee because the employee has filed a complaint, assisted an inspector of the commissioner who may make or is making an inspection under (b), or has instituted or caused to be instituted any proceeding under or related to this part, or has testified or is about to testify in any proceeding or because of the exercise of any rights afforded pursuant to this part on behalf of the employee or on behalf of others, nor shall pay, position, seniority or other benefits be lost for exercise of any right provided by this part.