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How Whistleblower Laws Protect Against Retaliatory Discharge In Illinois

March 25 , 2025

Employees who report unlawful activities in the workplace perform a critical role in maintaining ethical business practices. However, many workers fear retaliation from their employers, including termination, demotion, or other adverse employment actions. Federal and Illinois laws provide strong protections for whistleblowers to ensure they can report illegal activity without fear of losing their jobs. At the Law Office of Michael T. Smith & Associates, we represent employees who have been wrongfully terminated for speaking up.

 

Understanding Retaliatory Discharge Under Illinois Law

 

Illinois law recognizes retaliatory discharge as an unlawful employment practice. Under common law protections, an employer cannot fire an employee for reasons that violate public policy. This includes termination for:

 

  • Reporting illegal conduct to authorities
  • Filing a workers’ compensation claim
  • Refusing to engage in unlawful activity

 

The Illinois Whistleblower Act (740 ILCS 174/) specifically protects employees from employer retaliation when they disclose illegal activities, refuse to engage in violations of the law or participate in investigations.

 

Additionally, under the Illinois Human Rights Act (775 ILCS 5/), employees cannot be retaliated against for reporting workplace discrimination or harassment.

 

Federal Whistleblower Protections Against Retaliatory Discharge

 

Several federal laws provide protections for whistleblowers across various industries. Employees may be covered under:

 

  • Sarbanes-Oxley Act (18 U.S.C. § 1514A) – Protects employees of publicly traded companies who report fraud or violations of securities laws.
  • Occupational Safety and Health Act (29 U.S.C. § 660(c)) – Protects employees from retaliation for reporting workplace safety violations.
  • False Claims Act (31 U.S.C. § 3730(h)) – Shields whistleblowers who report fraudulent claims made to the federal government.
  • Dodd-Frank Wall Street Reform Act (15 U.S.C. § 78u-6) – Protects employees who report securities violations to the Securities and Exchange Commission (SEC).

 

Federal whistleblower laws allow employees to file retaliation claims with agencies like the Occupational Safety and Health Administration (OSHA) and the U.S. Department of Labor.

 

What Constitutes Retaliatory Discharge?

 

Retaliatory discharge occurs when an employer terminates an employee as punishment for reporting illegal activity. Common forms of retaliation include:

 

  • Wrongful termination – Being fired shortly after making a report
  • Demotion or pay cuts – Reducing job responsibilities as punishment
  • Harassment or intimidation – Creating a hostile work environment
  • Negative performance reviews – Issuing unfair evaluations to justify termination
  • Blacklisting – Preventing the employee from securing future employment

Illinois and federal laws require proof that the whistleblowing activity directly led to the adverse employment action. Employers often try to disguise retaliation by citing poor performance or company restructuring, which makes legal representation critical in these cases.

How To Prove A Retaliatory Discharge Claim

A successful retaliatory discharge lawsuit requires strong evidence that an employer violated whistleblower protections. Employees should document:

  • Timeline of events – Keeping records of complaints and employer responses
  • Emails or messages – Preserving written evidence of retaliation
  • Witness testimony – Having co-workers confirm adverse treatment
  • Employer policies – Reviewing company retaliation policies

An employee must establish causation, meaning the termination was directly related to their protected activity. Courts often look at the timing between the whistleblowing and the retaliation as sudden negative employment actions after a complaint suggest unlawful termination.

Filing A Retaliatory Discharge Lawsuit In Illinois

Employees who experience retaliation have the right to file a claim under Illinois and federal laws. The process typically involves:

  1. Filing a complaint with a government agency – Agencies such as the Equal Employment Opportunity Commission (EEOC), Illinois Department of Human Rights (IDHR), or OSHA investigate retaliation claims.
  2. Pursuing legal action – If administrative agencies do not resolve the matter, employees can file a lawsuit in state or federal court.
  3. Seeking damages – Employees may be entitled to back pay, job reinstatement, punitive damages, and attorney fees.

Employees must act within the statute of limitations, as claims must be filed within strict deadlines. Consulting an experienced Chicago retaliatory discharge lawyer ensures compliance with all filing requirements.

Workplace Retaliation Frequently Asked Questions

What Should I Do If I Suspect Retaliation After Reporting Illegal Activity?

If you believe you are facing retaliation, document all relevant interactions, including performance evaluations, emails, and job assignments. Keep track of any changes in your employment status and seek legal guidance as soon as possible.

Can I Be Fired For Reporting My Employer’s Fraud?

No. Illinois and federal whistleblower laws protect employees who report fraudulent activity. If your employer retaliates against you, you may have grounds for a legal claim under the False Claims Act or Illinois Whistleblower Act.

How Do I Prove My Employer Retaliated Against Me?

Proving retaliation requires establishing a direct link between your whistleblowing activity and the adverse employment action. Key evidence includes timing, witness testimony, written communications, and changes in job responsibilities.

What Compensation Can I Receive In A Retaliatory Discharge Case?

Employees who win a retaliatory discharge lawsuit may recover:

  • Lost wages and benefits
  • Emotional distress damages
  • Punitive damages against the employer
  • Job reinstatement or front pay

Is There A Deadline To File A Retaliation Claim?

Yes. Deadlines vary based on the law under which you file. Illinois whistleblower claims typically have a 180-day or two-year statute of limitations, depending on the case. It is essential to file promptly to protect your rights.

Can I Report Workplace Violations Anonymously?

Many whistleblower laws allow for anonymous reporting, especially under federal programs such as the SEC whistleblower program. However, if your identity becomes known and you face retaliation, you are still legally protected.

Will A Whistleblower Claim Hurt My Future Employment Prospects?

Employers are legally prohibited from retaliating against whistleblowers, but some industries may be more resistant to hiring individuals who have filed claims. An attorney can help you pursue legal protections against blacklisting.

Call Law Office Of Michael T. Smith & Associates To Protect Your Whistleblower Rights

Retaliatory discharge is a serious violation of Illinois and federal employment laws. If you were fired or faced retaliation for reporting unlawful activity, you have legal options to fight back.

At Law Office of Michael T. Smith & Associates, we protect employees against wrongful termination and help them recover damages for retaliation. 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 from our office in Lisle, Illinois.

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