Tennessee Whistleblower Laws: Protections and How to Report
Overview of Tennessee Whistleblower Laws
Tennessee is an employment-at-will state, meaning employers can generally terminate employees for any reason or no reason. However, both statutory and common law protections create important exceptions for whistleblowers. Tennessee's whistleblower framework includes the Public Protection Act, state employee protections, false claims statutes, and several additional laws targeting specific types of retaliation.
Unlike many states that rely solely on statutes, Tennessee also recognizes a common law retaliatory discharge claim. This gives whistleblowers two potential paths to seek relief. Federal whistleblower protections also apply to Tennessee workers. For a complete overview of those protections, see our guide to Federal Whistleblower Laws.
Common Law Protections for Whistleblowers
Tennessee recognizes a public policy exception to the employment-at-will doctrine. Courts have determined that employers cannot fire employees for reasons that violate clearly established public policy. This common law protection exists independently of the state's statutory protections, meaning employees can pursue claims under both.
Tennessee courts have recognized common law retaliatory discharge claims for employees who:
- Refuse to commit perjury
- Refuse to violate workplace safety laws
- Exercise meal break and rest period rights
- File claims for workers' compensation benefits
- Serve on a jury
To succeed on a common law retaliatory discharge claim, an employee must show that a clear public policy was violated by the termination. Courts look to constitutional provisions, statutes, and prior judicial decisions to identify these public policies.
Tennessee Public Protection Act
The Tennessee Public Protection Act (TPPA), codified at Tenn. Code Ann. 50-1-304, is the state's primary whistleblower statute for private sector employees.
Who Is Protected
The TPPA protects employees who are discharged for:
- Refusing to participate in illegal activities
- Refusing to remain silent about illegal activities
"Illegal activities" under the TPPA means activities that violate federal or state criminal or civil codes, or any regulation intended to protect public health, safety, or welfare.
The "Sole Cause" Requirement
One important limitation of the TPPA is that the employee must prove the whistleblowing was the sole reason for the termination. This is a higher standard than many other states require. If the employer can show any other legitimate reason contributed to the firing, the claim may fail. Tennessee courts have strictly enforced this requirement.
Statute of Limitations
A lawsuit under the TPPA must be filed within one year of the retaliatory action.
Remedies
Employees who prevail under the TPPA may recover:
- Actual damages
- Reasonable attorney's fees and court costs
The TPPA does not specifically provide for reinstatement, although courts may order other appropriate relief.
State Employee Whistleblower Protections
Tennessee provides separate and broader protections for state government employees under Tenn. Code Ann. 8-50-116.
Protected Activities
State employees are protected from retaliation for reporting or intending to report:
- Violations of state or federal law, rules, or regulations by any person, agency, or contractor
- Willful efforts to carry out such violations
- Fraud against the public, state or federal government, or fellow employees
- Misappropriation of state or federal resources
- Activities that endanger the safety and health of the public or fellow employees
- Gross mismanagement of a program, gross waste of state or federal funds, or gross abuse of authority
Prohibited Retaliation
Employers may not discharge, demote, suspend, alter terms of employment, or discriminate against a state employee for engaging in these protected activities. State employees are also protected from retaliation for refusing to carry out orders that violate state or federal law, regulations, or written policies, or that pose an unreasonable health and safety risk.
Remedies for State Employees
State employees who experience retaliation may recover:
- Actual damages
- Injunctive relief
- Reinstatement to their former position
- Back wages
- Full fringe benefits and seniority rights
- Litigation costs, including reasonable attorney's fees
Tennessee False Claims Act
The Tennessee False Claims Act (TFCA), codified at Tenn. Code Ann. 4-18-101 through 4-18-108, allows whistleblowers to file qui tam lawsuits against individuals or entities that defraud the state government.
What Conduct Is Covered
The TFCA applies to false or fraudulent claims made to the state or any local government entity, including claims related to procurement, transportation, education, construction, and other state-funded programs. Medicaid claims are covered under a separate statute.
Qui Tam Provisions and Whistleblower Awards
Private individuals may bring civil actions on behalf of the state for violations of the TFCA. If the action succeeds:
- If the government intervenes, the whistleblower receives 25% to 33% of the recovered proceeds
- If the whistleblower prosecutes the case without government intervention, the award increases to 33% to 50%
- The whistleblower also receives reasonable expenses, costs, and attorney's fees
Penalties
Violators face civil penalties plus three times the amount of damages sustained by the state.
Tennessee Medicaid False Claims Act
The Tennessee Medicaid False Claims Act (TMFCA), codified at Tenn. Code Ann. 71-5-181 through 71-5-185, specifically targets fraud in the state's Medicaid program.
Penalties and Awards
Individual occurrences of Medicaid fraud can result in:
- Civil penalties between $5,000 and $25,000 per violation
- Treble (triple) damages
In successful qui tam actions under the TMFCA, whistleblowers receive between 15% and 30% of the recovered proceeds, depending on the government's level of involvement.
Additional Whistleblower Protections
Tennessee has several other statutes that provide whistleblower protections in specific contexts.
Education Truth in Reporting and Employee Protection Act
Under Tenn. Code Ann. 49-50-1409, no person or employer may discipline or threaten to discipline any person who reports information under this Act. Remedies include reinstatement, back wages, fringe benefits, seniority rights, actual damages, and attorney's fees.
Discrimination Protections
Tenn. Code Ann. 4-21-301(1) makes it a discriminatory practice to retaliate against individuals who oppose discriminatory practices, file complaints, or participate in investigations or proceedings related to discrimination. Complaints must be filed with the Tennessee Human Rights Commission (THRC) within 180 days, or a lawsuit may be filed within one year.
Remedies include hiring or reinstatement with back pay, restoration to appropriate training programs, compensatory damages, and other appropriate relief.
Sex Discrimination in Wages
Tenn. Code Ann. 50-2-202(c) protects employees who take action to enforce the state's equal pay law. Employers who violate this statute may be found guilty of a Class A misdemeanor. Employees may recover unpaid wages plus liquidated damages that escalate with repeat violations: equal to unpaid wages for a first offense, double for a second offense, and triple for a third offense. Claims must be filed within two years.
False Information Reporting
Under Tenn. Code Ann. 8-4-409, no person may take adverse action against an employee for reporting in good faith that another person has provided false information about government spending. Violators may be found guilty of a Class A misdemeanor.
Occupational Safety and Health
Tenn. Code Ann. 50-3-409(a) prohibits retaliation against employees who file complaints, institute proceedings, testify, or exercise rights related to workplace safety. Complaints must be filed with the Tennessee Department of Labor and Workforce Development within 180 days. Remedies include reinstatement with back pay and other appropriate relief.
Nursing Home Protections
Under Tenn. Code Ann. 68-11-903, nursing homes and homes for the aged cannot discriminate against individuals who file complaints, provide information, or cooperate with government agencies responsible for protecting nursing home residents.
Lawful Employment Act
Tenn. Code Ann. 50-1-706 prohibits retaliation against individuals who report violations of the Lawful Employment Act, which addresses the hiring of workers who have not been verified through the E-Verify system.
Labor Union Protections
Under Tenn. Code Ann. 50-1-202, it is unlawful to discharge a person because the person refused to join or affiliate with any labor union. Violators may be found guilty of a misdemeanor, with each day of continuing violation counted as a separate offense.
How to File a Whistleblower Complaint in Tennessee
Filing a Lawsuit Under the TPPA
Employees who believe they were fired for refusing to participate in or reporting illegal activities may file a lawsuit in the appropriate Tennessee court within one year of the termination.
Filing with the Tennessee Human Rights Commission
For discrimination-related retaliation, contact the THRC at (800) 251-3589. Complaints must be filed within 180 days of the retaliatory action.
Filing with the Department of Labor and Workforce Development
For workplace safety retaliation, contact the Tennessee Department of Labor and Workforce Development at (844) 224-5818. Complaints must be filed within 180 days.
Filing a Qui Tam Action
To file a False Claims Act or Medicaid False Claims Act lawsuit, the complaint must be filed under seal in state court and served on the state Attorney General, who then determines whether to intervene.
Practical Tips for Whistleblowers
- Keep detailed records of the illegal activity you observed or were asked to participate in.
- Document the timeline of events, including when you reported the activity and when any adverse action occurred.
- Be aware that the TPPA requires proving the whistleblowing was the sole cause of termination, so preserving evidence is critical.
- Consult with an employment attorney experienced in Tennessee whistleblower law before filing.
- Consider whether both common law and statutory claims may apply to your situation.
More Tennessee Laws
Sources and References
- Tennessee Department of Labor - Labor Laws(tn.gov).gov
- Tennessee State Employee Whistleblower Protection Act (TCA 8-50-116)(peer.org)
- Tennessee False Claims Act - Office of Inspector General(tn.gov).gov
- Tennessee Medicaid Fraud Control Division(tn.gov).gov
- Tennessee Human Rights Commission(tn.gov).gov
- Tennessee Occupational Safety and Health(tn.gov).gov
- Tennessee Department of Health(tn.gov).gov
- Tennessee Department of Education(tn.gov).gov
- Tennessee Department of Workforce Development(tn.gov).gov