GUEST OPINION: You probably never expected to be in this position. You took the job for the paycheck, the benefits, maybe even the mission. But now you’ve seen something you can’t unsee. And while your gut tells you it’s wrong, the next steps aren’t so clear.
What do you do when your employer is breaking the law?
Whether it’s financial fraud, unsafe working conditions, wage theft, discrimination, or some other type of misconduct, you’re not just facing a moral dilemma – you’re walking a legal tightrope. Speaking up might feel risky. Staying silent might feel just as bad.
The truth is, there’s a path forward – but it requires you to tread carefully. Here’s what to do if you suspect or discover your employer is doing something illegal.
1. Confirm What You’re Seeing
Before you blow the whistle, you need to make sure you’re actually witnessing illegal behaviour, not just something unethical, frustrating, or morally questionable.
For example, a boss who yells might be toxic, but he’s not necessarily breaking the law. On the other hand:
- Paying workers under the table to avoid taxes? That’s illegal.
- Firing someone based on their race, gender, or disability? Also illegal.
- Fudging financial records for investors or regulators? Definitely illegal.
Do some research. Look up state and federal laws related to the issue at hand. Review your company handbook or HR policies. If you’re not sure whether something crosses the legal line, it’s okay to consult with an employment lawyer privately – many offer free consultations.
Remember that your credibility matters. If you report something inaccurately or without a strong basis, it could affect how seriously your concerns are taken.
2. Document Everything
The moment you suspect wrongdoing, start documenting. Keep a detailed record of what you saw, when you saw it, and who was involved. Save emails, take screenshots, write down quotes – anything that could help support your case if and when you decide to report it.
Don’t use your work computer or email to store this information. Save it on your personal device or a secure cloud account. If possible, make backups.
The more evidence you have, the harder it is for your employer to deny the behaviour or retaliate against you without consequence.
3. Consider Internal Reporting First (If Safe)
In some cases, the best place to start is inside your company, especially if you believe the issue could be resolved without external escalation.
That might mean reporting something to your supervisor (assuming they aren’t the ones committing the offence. Or you might take it to human resources or use an internal reporting hotline.
If you take this route, be clear, professional, and factual in your communication. Focus on what you witnessed, not just how you feel about it. Your goal is to report the behaviour, not make enemies.
That said, not all companies handle internal reports well. If the misconduct is widespread or seems likely to be covered up, you may be better off reporting directly to an outside authority.
4. Know Your Rights as a Whistleblower
If you decide to go public – or report the behaviour to a government agency – you’re stepping into whistleblower territory. That might sound dramatic, but the law is on your side.
As attorney Peter Katz explains, “A whistleblower is someone who reports illegal activity, bringing wrongdoers to justice. A whistleblower reports sensitive information to an authorised recipient (someone who has the authority to take legal action). Both federal and state laws provide whistleblowers protection from being fired, demoted, or otherwise discriminated against by their employers.”
In other words, if your employer retaliates against you for speaking up, they could be the ones facing legal trouble.
Whistleblower protections vary depending on the law being violated. For example:
- OSHA protects workers reporting unsafe conditions.
- The SEC protects employees reporting securities fraud.
- The False Claims Act protects those who report government contract fraud.
Many states have their own whistleblower laws, too. So, before you make your report, understand which laws apply to your situation. A qualified employment attorney can help you navigate this and ensure you’re protected from retaliation.
5. Report to the Proper Authority
If you’re ready to take your concerns outside the company, make sure you report to the right agency. This depends on the nature of the misconduct:
- For wage theft or overtime violations: the U.S. Department of Labour
- For unsafe working conditions: OSHA
- For discrimination or harassment: the EEOC
- For securities or financial fraud: the SEC
- For Medicaid/Medicare or contractor fraud: HHS or DOJ
- For environmental violations: the EPA
Most agencies have secure reporting channels, and many allow you to report anonymously. Keep copies of any forms you submit, and make a note of the case or complaint number for future reference.
Decide What Comes Next
Depending on how things play out, you may need to start looking for another job – or even pursue legal action against your employer. Either way, you’ve taken a stand that many wouldn’t dare to take. And that’s how you create change.
Keep your head high and know this: If your employer is breaking the law, staying silent won’t protect you. However, speaking up just might protect others (and hold people accountable for their actions). That’s enough reason to take action.