Texas Whistleblower Laws: Protections and How to Report

Overview of Texas Whistleblower Laws

Texas is an employment-at-will state, meaning employers can generally terminate workers for any reason or no reason at all. However, both statutory and common law protections create exceptions for employees who report illegal activity or refuse to participate in unlawful conduct.

The primary whistleblower statute in Texas is the Texas Whistleblower Act (Chapter 554 of the Texas Government Code), which applies specifically to public sector employees. Private sector workers must rely on a narrow common law exception and various industry-specific statutes. Federal whistleblower protections also apply to all Texas workers. For a complete overview of those protections, see our guide to Federal Whistleblower Laws.

Common Law Protections

Texas recognizes a very narrow public policy exception to the employment-at-will doctrine. Under this exception, it is illegal for employers to discharge an employee for refusing to carry out an activity that carries criminal penalties. This protection does not extend to employees who refuse to perform acts that are merely civilly illegal but do not carry criminal consequences.

An employee may also be protected if he or she was terminated for attempting to determine whether a directive from the employer would constitute a criminal act. However, because the exception is so narrow, many Texas employees must rely on specific statutory protections rather than common law claims.

Texas Whistleblower Act (Public Employees)

The Texas Whistleblower Act, codified at Tex. Gov't Code Chapter 554, is the primary whistleblower protection for public sector employees in Texas.

Who Is Protected

The Act applies to employees of state and local governmental entities, including state agencies, counties, cities, school districts, and other political subdivisions. It does not cover private sector employees.

Protected Activity

Under Tex. Gov't Code 554.002, a governmental entity may not suspend, terminate, or take other adverse personnel action against a public employee who in good faith reports a violation of law by the employing governmental entity or another public employee to an appropriate law enforcement authority.

To qualify for protection, the employee must demonstrate:

• The employee made a report of a violation of law
• The report was made in good faith
• The report was made to an appropriate law enforcement authority
• The adverse action would not have occurred when it did if the employee had not made the report

What Counts as an "Appropriate Law Enforcement Authority"

Texas law defines an appropriate law enforcement authority as a body that has the authority to regulate, investigate, or enforce the law alleged to have been violated, or to bring criminal charges for the violation. This includes agencies like the Texas Attorney General's Office, the Texas Commission on Environmental Quality, local police departments, and district attorneys.

Statute of Limitations

Public employees must initiate action within 90 days of the retaliatory action. This is one of the shortest deadlines in the country. Before filing a lawsuit, the employee must first initiate the employer's grievance or appeals procedure within 90 days, then file suit no later than the 60th day after the grievance procedure is finalized.

Remedies for Public Employees

Public employees who prevail under the Texas Whistleblower Act may recover:

• Injunctive relief
• Actual damages
• Court costs and reasonable attorney's fees
• Reinstatement to the former position or an equivalent position
• Compensation for wages lost during the period of suspension or termination
• Reinstatement of fringe benefits and seniority rights

Compensatory damages are capped based on the employer's size:

• Fewer than 101 employees: up to $50,000
• 101 to 200 employees: up to $100,000
• 201 to 500 employees: up to $200,000
• More than 500 employees: up to $250,000

Posting Requirements

Under Tex. Gov't Code 554.009, governmental entities must post a notice informing employees of their protections under the Act. The Texas Attorney General provides a poster for this purpose.

Texas Medicaid Fraud Prevention Act

The Texas Medicaid Fraud Prevention Act (TMFPA), codified at Tex. Hum. Res. Code Chapter 36, is a powerful tool for combating healthcare fraud. It includes qui tam provisions that allow private citizens to bring lawsuits on behalf of the state.

What Conduct Is Covered

The TMFPA targets anyone who knowingly presents false or fraudulent claims to the state's Medicaid program, including healthcare providers, suppliers, and billing companies.

Qui Tam Provisions and Whistleblower Awards

Private individuals may file qui tam lawsuits on behalf of the state. If the action succeeds:

• If the state intervenes in the case, the whistleblower receives 15% to 25% of the recovered amount
• If the whistleblower prosecutes the case without state intervention, the award increases to 25% to 30%

Penalties

Violators face:

• Civil penalties between $5,500 and $11,000 per false claim
• Two times the amount of damages sustained by the state

Anti-Retaliation Protections

Under Tex. Hum. Res. Code 36.115, employers cannot retaliate against employees who report Medicaid fraud or assist the government with investigations. Employees who experience retaliation may recover reinstatement, two times the amount of back pay, interest on back pay, compensation for special damages, and reasonable attorney's fees.

Additional Whistleblower Protections

Texas has numerous additional statutes that protect employees who report wrongdoing in specific contexts.

Child Abuse Reporting

Under Tex. Fam. Code 261.110, employers cannot retaliate against employees who report child abuse or neglect in good faith. Remedies include actual damages, exemplary damages, attorney's fees, reinstatement, lost wages, and restoration of fringe benefits and seniority rights.

Employment Discrimination

Tex. Lab. Code 21.055 prohibits retaliation against individuals who oppose discriminatory practices, file charges or complaints, or participate in discrimination investigations or proceedings. Complaints must be filed with the Texas Workforce Commission, Civil Rights Division within 180 days. Remedies include injunctive relief, reinstatement with back pay, and in cases of willful violations, compensatory and punitive damages.

Hazardous Substances

Tex. Health and Safety Code 502.017(c) protects employees who file complaints, assist inspectors, or exercise rights related to the state's hazard communication requirements.

Healthcare Facilities

Several statutes protect employees in healthcare settings:

• Hospitals and mental health facilities: Tex. Health and Safety Code 161.134(a) protects employees who report law violations. Claims must be filed within 180 days. Remedies include actual damages, mental anguish damages, exemplary damages, and attorney's fees.
• Assisted living facilities: Tex. Health and Safety Code 247.068(a) prohibits retaliation against individuals who file complaints or provide information about facility services.
• Intermediate care facilities: Tex. Health and Safety Code 252.132 protects employees who report law violations or cooperate in investigations. Claims must be filed within 90 days.
• Home health and hospice: Tex. Hum. Res. Code 48.257 protects individuals who report suspected abuse, neglect, or exploitation of persons receiving home-based services.

Occupational Health and Safety

Tex. Lab. Code 411.082 protects employees who report suspected workplace safety violations. Claims must be filed within 90 days. Remedies include reinstatement, lost wages, and restoration of fringe benefits and seniority rights.

Workers' Compensation

Tex. Lab. Code 451.001 prohibits retaliation against employees who file workers' compensation claims, hire attorneys to represent them, testify, or institute proceedings. Claims must be filed within two years.

Emergency Evacuation

Tex. Lab. Code 22.002 protects employees who leave the workplace to participate in a general public evacuation ordered under an emergency evacuation order. Remedies include reinstatement and lost wages and benefits.

How to File a Whistleblower Complaint in Texas

Public Employees

Public employees must first initiate the employing governmental entity's grievance or appeals procedure within 90 days of the retaliatory action. If the grievance process does not resolve the issue, the employee may file a lawsuit within 60 days after the procedure is finalized.

Filing with the Texas Workforce Commission

For discrimination-related retaliation, file a complaint with the Texas Workforce Commission, Civil Rights Division at (800) 628-5115 within 180 days.

Filing a Qui Tam Action

For Medicaid fraud claims, qui tam complaints are filed under seal in state court and served on the Texas Attorney General, who determines whether to intervene.

Practical Tips for Texas Whistleblowers

• Pay close attention to the 90-day deadline for public employee claims. Missing this deadline can bar your entire case.
• Make reports to an "appropriate law enforcement authority" to ensure protection under the Whistleblower Act.
• Document your reports in writing and keep copies of all communications.
• Consult an employment attorney experienced in Texas whistleblower law as soon as possible after experiencing retaliation.
• Consider whether multiple statutes may apply to your situation.

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