For too long, taxpayers have been subsidizing whistleblower retaliation by paying legal costs incurred by contractors in defending whistleblower retaliation lawsuits. Due to this misguided policy, government contractors had little disincentive not to retaliate against whistleblowers because the government paid the cost of defending such claims.
A FAR amendment implementing the whistleblower protection provisions of the NDAA provides that legal costs incurred in defending an NDAA whistleblower retaliation claim are presumptively unallowable until the matter is completely litigated and the contractor prevails. If an NDAA whistleblower claim is settled, costs would be reimbursed only if the contracting officer determines that there was very little likelihood that the claimant would have been successful on the merits. It is long overdue for the government to stop subsidizing whistleblower retaliation.
If you have suffered retaliation for whistleblowing, contact us to schedule a free preliminary consultation.