MN Legislature Expands Whistleblower Protections

The Minnesota Legislature recently amended the Minnesota Whistleblower Act to make it easier for employees to file these claims against their employers. The amendments broadly define the terms “good faith,” “penalize,” and “report,” which were not previously defined in the Act. The amendments became effective on May 25, 2013, the day after Governor Mark Dayton signed the bill into law.

The Minnesota Whistleblower Act bars an employer from discharging, disciplining, threatening, or otherwise discriminating against an employee in response to the employee’s good faith report of a violation or suspected violation of any law to an employer, a governmental body or a law enforcement official. An employee who wins a claim under this law may recover damages for lost future earnings, impairment of reputation, mental anguish and emotional suffering, and reasonable attorneys’ fees.

The amendments broaden the definition of what may be considered a “good faith” report. Previously, a “good faith” report was one where the employee subjectively believed that the conduct was illegal. Now, the employee need only establish that the report is not knowingly false or made in reckless disregard of the truth.

In addition, the revised law expands the scope of prohibited employer conduct by protecting reports of legal violations (or suspected violations) that have not yet occurred, as well as reports of violations committed by persons other than the employer.

Bottom Line

Since it is now much easier to file successful whistleblower claims, Minnesota employers should implement policies requiring the investigation of all employee allegations of wrongdoing. These policies should include a prohibition against any retaliatory conduct against the person making these reports. Employers should also carefully document each of the steps taken in these investigations.

Most importantly, as has always been the case, employers should take great care to avoid creating any inference of a connection between the employee’s complaint and any subsequent adverse action that the employee might suffer as a result of legitimate performance or behavioral issues at work.