In most scenarios where employees sue their employers, the issue relates to their employment arrangement. Workers may file wage and hour lawsuits over unpaid work. They might pursue discrimination or harassment lawsuits.
However, qui tam lawsuits are different from employment lawsuits. They do not relate to how the company treats its workers necessarily. Instead, they have their basis in illegal or fraudulent billing activity.
Under the False Claims Act, employees with non-public information about a business’s operations can initiate qui tam lawsuits in which they act as relators. They can sue their employers on behalf of the government.
Who can act as a relator?
Typically, only employees who have witnessed fraudulent activity or who have accessed evidence of fraud through their employment can act as relators. Technically, any professional with knowledge of fraud involving government billing could potentially act as a relator. However, a large percentage of qui tam lawsuits stem from a handful of industries.
Railroad companies and the businesses that service them often bill the federal government for maintenance, repairs and other services related to railway infrastructure. As such, railroad workers may recognize that their employers have falsified their billing claims. Qui tam lawsuits related to the railroads are somewhat common.
Many modern qui tam lawsuits begin in the medical sector. A large number of medical practices and hospitals accept Medicare and Medicaid coverage. If workers notice inappropriate billing practices, they could act as relators.
Billing for appointments that didn’t happen could constitute fraud in the medical sector. Qui tam lawsuits could also arise because of less overt billing fraud. Upcoding involves charging for a more expensive procedure than the one a doctor actually performed. Unbundling involves charging full price for separate services that are eligible for discounts when combined with one another. Both of those practices are technically fraudulent.
There are certain other industries where companies might engage in fraudulent billing practices. Construction firms performing expansions or erecting new buildings might bill inappropriately. Vendors and service providers with government contracts could also engage in fraudulent billing.
Any worker who has documentation supporting their allegations that an employer has billed for services not rendered, overcharged for goods by misrepresenting them or otherwise engaged in fraud may want to protect themselves by acting as a whistleblower. Filing a qui tam lawsuit can help protect employees from becoming implicated in a company’s misconduct.
Whistleblowers have protection from retaliation and may even receive financial compensation for their efforts if the lawsuit successfully recovers funds for the government. Securing legal support and evaluating the situation at length can help employees who need to act as whistleblowers protect themselves in difficult situations.