Whistle-blower alert: Beware punishing employees who report customer wrongdoing — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

Whistle-blower alert: Beware punishing employees who report customer wrongdoing

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in Employment Law,Human Resources

You may prefer a “don’t rock the boat” mentality when it comes to reporting to police or other governmental authorities that a customer may be breaking the law. That doesn’t mean you can force employees to remain silent—or worse yet, punish them for going to authorities.

Doing that could cost a fortune in damage awards, especially if it turns out that your employee was right.

Recent case: Mike worked as a pharmaceutical sales representative for Bayer. His primary responsibility was selling Mirena, a contraceptive device manufactured and sold by Bayer.

Mike regularly visited doctors who might prescribe the device, including one who ran a women’s center and accepted Medicaid patients. During the course of his job, Mike learned that the doctor, instead of purchasing an FDA approved version of Mirena, was importing an unapproved version of the device from Canada and then reselling it by submitting Medicaid claims on behalf of th...(register to read more)

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