Arizona Whistleblower Laws

If an employer is breaking the law, being the person to reveal it to the authorities is no easy task. The Arizona Employment Protection Act (AEPA) prohibits the termination of an employee under very specific grounds. Not all adverse employment action falls under the AEPA. The employee must report violations of state or federal law and have been terminated because of their actions. Harassment or other adverse treatment (such as demotion) is not sufficient, although an employee can claim constructive termination if the harassment caused them to quit.

Arizona’s whistleblower law extends the state law passed in the 1980s that protects public employees who report workplace safety violations. The Arizona Employment Protection Act (AEPA) extends coverage to all workers in all jobs.

What Is Whistleblowing?

Some companies can get away with unethical or illegal behavior. The government relies on inspectors and auditors to find evidence of wrongdoing, but those investigations take time. More often, proof of wrongdoing comes from inside. Employees who have proof of violations report the crime to government agencies. The term “whistleblowers” originated with old mill workers who would pull a whistle to stop work.

Whistleblowers were, and still are, subject to harassment and retaliation for their acts. To help ensure that their valuable help continues, the federal government and state legislatures enacted whistleblower protection laws. These laws give whistleblowers legal recourse against retaliatory termination and harassment.

Arizona’s Whistleblower Laws

Arizona has two whistleblower protection statutes. They work together to protect both public and private sector employees.

Private employees are protected from wrongful termination only under the AEPA. This coverage includes being fired for any of the following reasons:

• Refusing to commit an act or failing to perform an action that would violate the Arizona Constitution or any Arizona statute
• Disclosing any information where the employee reasonably believes that the employer or another employee has violated the state constitution or state law, and has reported such belief to management or any public body
• Claiming workers’ compensation protection
• Serving on a jury, voting, or exercising a “right-to-work” choice

If a statute has a separate reporting and protection clause, employees must use it if they face retaliation for reporting under it.

Violation reporting by state employees is governed by the Arizona Revised Statutes (A.R.S.). This statute protects civil employees who report mismanagement or abuse of authority in a government agency. The law prohibits any retaliatory disciplinary action, including:

• Demotion, suspension, or dismissal
• Disciplinary or corrective action
• Adverse performance evaluations
• Transfer or reassignment without merit
• Elimination of a position without cause

The primary difference between the two laws is that the AEPA only protects workers after termination. The state law protects state workers who are still employed.

How To Report Violations

Arizona employees who want to ensure they have whistleblower protections before filing a complaint must follow the proper procedure. The best way is to speak to an employment attorney about your concerns. Federal laws may give you the right to compensation, but you must report under certain federal regulations.

• You must make the report in good faith. This means you must have either proof or a reasonable belief that the violation is occurring or is about to occur.
• You must report the violation to someone in a managerial position you reasonably believe has the authority to investigate the offense. The violation must be reported within your company before the state or federal government can become involved.
• If you cannot reasonably or safely report within your company, you must make the report to a “public body.” These include political agencies or government divisions.

In some cases, the law provides its own reporting agency. For instance, occupational health and safety concerns should be reported to the Arizona Division of Occupational Safety and Health (ADOSH). The department also handles retaliation complaints.

State employees must file retaliation complaints with the Arizona State Personnel Board within ten business days of any suspected retaliatory action. These complex reporting requirements and deadlines make a strong argument for whistleblowers to consult with an employment attorney before making any reports.

Penalties and Remedies

Penalties for employers who violate the whistleblower protection laws depend on whether the employer is private or public. The law provides workers with a civil cause of action against their employer, allowing them to sue for damages. The AEPA allows employees to recover:

• Back pay, front pay, lost benefits, and other income due to termination
• Compensatory damages, such as emotional distress and loss of reputation
• Attorney fees and costs
• Punitive damages if the termination or constructive termination was intentional, malicious, or egregiously retaliatory

Public service employees may recover:

• Full reinstatement
• Double back pay
• Injunctive relief
• Attorney fees and costs

An individual supervisor or employee who committed the prohibited personnel practice may be ordered to pay up to $5,000 into the state general fund.

Qui Tam Actions and Federal Whistleblowing

The federal government considers fraud a matter of great public concern. To encourage private individuals to report fraud against the government, it created qui tam actions. These allow private citizens to be awarded some of the money recovered when the government acts on their information.

A qui tam action requires a claimant to follow many government guidelines regarding what can be reported and how it must be delivered to government agents. If you believe you have evidence of fraud or false claims, you should immediately contact an attorney who understands qui tam law.

Get Legal Advice From an Arizona Employment Law Attorney

Whistleblower retaliation laws help protect you after you’ve faced termination or other reprisal from your employer. If you want to protect yourself before you make a report against your employer for workplace violations, you should speak with an employment law attorney who can help you make your report through the proper channels. If you have already filed a report and need legal assistance, a whistleblower attorney can give you the help you need to recover damages.