Texas Whistleblower Law
Under common law it is unlawful to terminate employees if the sole reason is their refusal to perform an illegal act.
Court Decisions:
- Sabine Pilot Service Inc. v. Michael Andrew Hauck, 687 S.W.2d 733 (Tex. 1985)
- Texas v. Lueck, 290 S.W.3d 876 (Tex. 2009)
- The Ed Rachal Found. v. D’Unger, 207 S.W.3d 330 (Tex. 2006)
- Safeshred v. Martinez, 365 S.W.2d 655 (Tex. 2012)
- Peine v. Hit Sers. LP, 479 S.W.3d 445 (Tex. App. 2015)
Statutes:
- TX Health & Safety Code § 161.134–135 (healthcare)
- TX Health & Safety Code § 502.017 (health and safety)
- TX Occ Code § 301.413 (nurses)
- TX Govt Code § 554.001–.010 (public employees)
Frequently Asked Questions
Does Texas have a False Claims Act (FCA)?
Yes. Texas has the Medicaid Fraud Prevention Law which covers frauds under the state’s Medicaid Act.
Does the Texas FCA have a whistleblower provision?
Yes. In Texas, a healthcare fraud whistleblower may receive an award between 15 to 25 percent of the collections in cases where the state intervenes and 25 to 30 percent in cases where there is no state intervention. Texas also has a separate provision that allows whistleblowers who report Medicaid fraud or abuse that successfully leads to an administrative penalty to receive up to 5 percent of the funds.
Does Texas recognize the public policy exception for wrongful termination?
Yes. Texas recognizes the public policy exception, though it is limited to only preventing employers from terminating employees in retaliation for the employee refusing to commit a criminal act on the employer’s behalf.
