You Have Rights as an Employee in Chicago and Surrounding Areas

Let Us Help You Protect Them

CONTACT US TODAY

Can You Be Fired For Reporting Illegal Activity At Work In Illinois?

July 29 , 2025

At the Law Office of Michael T. Smith & Associates, we often hear from workers who are dealing with one of the most difficult questions a person can face on the job: What happens if I speak up about something illegal happening at work? Retaliation in the workplace is real, and employees who act with integrity shouldn’t be punished for doing the right thing. Unfortunately, retaliation often takes the form of termination, demotion, isolation, or even blacklisting. If you’ve reported unlawful conduct on the job and your employer fired you, you may have legal protection under both Illinois and federal law.

Illinois law protects workers from what is known as “retaliatory discharge.” That means an employer cannot fire an employee for reporting illegal activity that violates public policy, including criminal acts, safety violations, discrimination, harassment, wage theft, or fraud against the government. Federal whistleblower laws also offer strong protections in specific areas, such as fraud, environmental violations, or misconduct involving federal contracts. If you believe your employer has taken action against you for speaking up, we are here to help you understand your rights and take action to protect them.

Understanding Retaliatory Discharge Under Illinois Law

Illinois is an at-will employment state, which means employers generally have the right to terminate workers for any reason or no reason at all. However, that right is not absolute. When a firing violates clearly established public policy, Illinois law recognizes an exception known as retaliatory discharge. This doctrine protects workers who are terminated for reporting or refusing to participate in illegal conduct.

Under Illinois case law, particularly the decision in Palmateer v. International Harvester Co., 85 Ill.2d 124 (1981), the Illinois Supreme Court held that it is against public policy to fire an employee for reporting suspected criminal conduct to law enforcement. Since then, courts have expanded protections to include employees who report workplace safety violations, file workers’ compensation claims, or blow the whistle on internal wrongdoing.

Federal Whistleblower Protections

Federal law provides additional protections for employees in specific industries or situations. For example:

  • The Sarbanes-Oxley Act (SOX) protects employees of publicly traded companies who report securities fraud.
  • The False Claims Act (31 U.S.C. §§ 3729–3733) includes a whistleblower provision allowing individuals to report fraud against the government and protects them from retaliation.
  • OSHA Whistleblower Protection protects workers who report workplace safety violations under the Occupational Safety and Health Act.
  • Title VII of the Civil Rights Act of 1964 (42 U.S.C. § 2000e-3) prohibits retaliation for reporting discrimination or harassment based on race, color, religion, sex, or national origin.

If your case falls under a federal whistleblower statute, there may be specific deadlines and procedures that must be followed, such as filing a complaint with the Occupational Safety and Health Administration (OSHA) or the Equal Employment Opportunity Commission (EEOC).

What Constitutes Illegal Retaliation

Not all adverse actions are considered illegal retaliation. To prove a case of retaliatory discharge or retaliation under federal law, three elements typically must be shown:

  1. You engaged in a protected activity (such as reporting illegal activity or refusing to participate in it).
  2. Your employer took an adverse employment action (such as firing, demotion, suspension, or reduction in hours).
  3. There is a causal connection between your protected activity and the adverse employment action.

The key is showing that the reason you were fired was directly related to your decision to speak up. That’s why it’s so important to document everything, from your initial complaint to the way your employer responded. Timing can also be a major factor. If you reported illegal conduct and were fired shortly afterward, it strengthens the argument that the termination was retaliatory.

Common Types Of Illegal Activity That Trigger Protection

We see retaliation cases arise from a wide range of workplace misconduct. Some of the most common include:

  • Reporting fraud or theft
  • Reporting workplace discrimination or harassment
  • Filing a complaint about unsafe working conditions
  • Reporting violations of state or federal wage laws
  • Refusing to falsify records
  • Reporting violations of environmental laws or public health regulations
  • Participating in a government investigation or internal compliance review

Whether you report internally to your supervisor, to human resources, or externally to a government agency, your actions may still be protected.

How We Investigate And Prove Retaliation Claims

Retaliation cases require a close review of documents, emails, performance evaluations, witness testimony, and timing. At our firm, we build strong cases by piecing together a timeline of events and identifying inconsistencies in the employer’s stated reason for termination. For example, if you received positive performance reviews until you reported misconduct, then were suddenly disciplined or terminated, that can be powerful evidence of pretext.

We also seek out any written policies, memos, or complaints that may support your claim. When necessary, we use subpoenas or request records through litigation to uncover the employer’s real motive.

What Compensation Can Be Recovered

If you’ve been the victim of retaliatory discharge, you may be entitled to compensation for the losses you’ve suffered. This may include:

  • Back pay (lost wages from the date of discharge)
  • Front pay (lost future earnings)
  • Emotional distress damages
  • Reinstatement (in some cases)
  • Attorney’s fees and court costs
  • Punitive damages (in certain federal cases)

The type of damages available depends on whether your claim falls under Illinois law or a specific federal statute.

Deadlines And Filing Requirements

Every retaliation case is subject to strict deadlines. In Illinois, a wrongful termination lawsuit based on retaliatory discharge typically must be filed within five years. However, whistleblower claims under federal law often have much shorter deadlines. For example, an OSHA whistleblower complaint must usually be filed within 30 days of the retaliatory action. Title VII retaliation claims must first be filed with the EEOC within 300 days.

Missing a deadline can prevent you from recovering any compensation, so we urge you not to wait if you suspect you’ve been wrongfully terminated.

FAQs About Retaliation And Whistleblower Rights In Illinois

Can I Be Fired For Reporting My Boss To The Police Or A Government Agency?

No. If you report criminal conduct or violations of law in good faith, you are generally protected from retaliation. Illinois law and federal whistleblower statutes prohibit employers from terminating employees for reporting illegal activity, whether you report internally or externally. If you are fired after reporting misconduct, you may have a valid legal claim.

Does It Matter Whether The Illegal Conduct Was Proven Or Investigated?

No. What matters is that you had a reasonable belief that the conduct was illegal and reported it in good faith. You do not need to prove that the illegal activity actually occurred to be protected under the law. Courts focus on your intention and whether retaliation followed your report.

Am I Protected If I Only Reported The Misconduct To Human Resources?

Yes. Internal complaints can still qualify as protected activity. Reporting concerns to HR, a supervisor, or through a compliance hotline is often enough to trigger protection under state and federal law. Keep records of your complaint and any follow-up communication.

Can I Be Retaliated Against In Ways Other Than Being Fired?

Yes. Retaliation includes any adverse employment action, not just termination. This can include demotion, suspension, reassignment to less favorable duties, reduction in hours, denial of promotion, or exclusion from meetings and communications. If your job changed significantly after you reported misconduct, that may qualify.

What If My Employer Claims I Was Fired For Performance Issues?

Employers often give pretextual reasons for termination. We look at your performance history, the timing of the termination, and whether other employees were treated differently to determine if the stated reason is false. If your performance was consistent but was suddenly questioned after you reported misconduct, that may support your claim.

How Do I Prove The Retaliation Happened Because Of My Report?

We build the timeline of events and collect evidence such as emails, witness statements, and employment records to show the connection. Proximity in time between your complaint and the adverse action, as well as any inconsistent explanations from your employer, can be strong indicators of retaliation.

Can I Sue My Employer For Emotional Distress?

Yes. In many retaliation cases, courts allow recovery for emotional harm caused by the discharge, such as anxiety, depression, or damage to reputation. The availability of damages for emotional distress depends on the nature of your claim and the statute under which it is filed.

Do I Need To Hire A Lawyer For A Retaliation Case?

Yes. Retaliation cases are legally complex and often require detailed legal analysis, evidence gathering, and court filings. Employers typically have legal counsel defending them. To protect your rights and have the best chance of success, it’s important to work with experienced attorneys who know how to handle these claims.

Call The Law Office Of Michael T. Smith & Associates If You’ve Been Fired For Reporting Illegal Activity

At the Law Office of Michael T. Smith & Associates, we fight for workers who had the courage to speak up, and were punished for it. If you’ve been fired or suffered retaliation after reporting illegal activity at work, you don’t have to deal with it alone. We understand the laws that protect whistleblowers, and we are ready to hold employers accountable for breaking those laws.

To receive your free consultation, contact our Chicago employment law lawyer at the Law Office of Michael T. Smith & Associates when you call (847) 450-1103. We represent clients throughout Chicago and across Illinois from our office in Lisle. Let us help you defend your rights and fight back against workplace retaliation.

Tell Us Your Story

We're ready to listen. Get started now by filling out the attached form.