Recognizing that corporate whistleblowers play an important societal role in publicizing potential wrongdoing, our state and federal governments have taken strong measures to encourage conscientious employees to come forward without fear of retaliation. Besides offering potential monetary incentives under regimes like the federal False Claims Act—where relators can recoup a percentage of the government's recovery—whistleblowers receive statutory protection from employer retaliation as a further incentive to step forward.  In addition to such federal safeguards, Pennsylvania's Whistleblower Law (PWL) provides another layer of protection to employees who blow the whistle on misconduct that affects public funds or violates state or federal law. When employers violate these laws, the penalties can be substantial, threatening the entire enterprise in severe cases. At the same time, employers who take vigorous and proactive compliance measures can minimize their whistleblower exposure while ensuring that employees with good-faith concerns are promptly and effectively heard.

However, ensuring compliance with the PWL is not always easy due to a split between Pennsylvania's state and federal courts regarding the statute's scope and application. This article supplies employers with guidance about the PWL's protections and restrictions, provides key considerations for employers depending on whether they are sued in state or federal court, and offers practical suggestions for employers seeking to minimize their exposure.