Whistle-blowers play an important role here in New Jersey and throughout the country, calling attention to employers who may be breaking the law and causing harm. When employees learn of employer misconduct, fraud or other illegal actions, they have the right to report this activity without the fear of retaliation. New Jersey employment law protects whistle-blowers from being fired or disciplined for reporting the illegal acts of their employers.

Such laws exist, in part, to prevent would-be whistle-blowers from being too scared to come forward. In a recent case involving whistle-blowers, a medical products firm has agreed to pay $30 million to the government to settle allegations that its subsidiary paid illegal kickbacks to physicians who used its products. A whistle-blower will receive an $8 million settlement, plus legal fees.

The case involved a publicly traded company, with headquarters here in the U.S. and in the Caribbean, which was accused of filing false claims for payment with Medicaid, Medicare and TRICARE as well as paying almost 70 doctors or medical firms monthly stipends of up to $6,000.

The company’s subsidiary was formerly located here in New Jersey and it reportedly provided surgeons with various kickbacks such as travel, entertainment and other various deceptive benefits.

Of course, compensating physicians to prescribe or use medications is illegal.

Although the company has agreed to settle the case, it has not admitted wrongdoing.

In some whistle-blower cases, employers unfortunately fire whistle-blowers or subject them to a hostile work environment. New Jersey’s Conscientious Employee Protection Act allows whistle-blowers to seek job reinstatement, back pay, benefits and other damages when this happens.

Source: Associated Press, “Medical products firm Orthofix paying $30M to feds to settle whistleblower kickbacks lawsuit,” Ken Ritter, Nov. 2, 2012

• Our New Jersey law firm advocates for employees who are mistreated after reporting employer misconduct. More information about whistle-blower’s rights is located on ourNew Jersey Whistle-blower Law page.