Claim for wrongful discharge based on whistleblowing rejected

Can a business terminate an employee for claiming its operations are somehow illegal or against public policy? For example, can an employer discharge an employee for complaining the business’s refusal to use electric vehicles or reduce the use of plastic is harming the environment? In Wisconsin, the answer is a qualified yes. A recent Wisconsin court of appeals case reviewed the standard for when a discharged employee can file a common-law claim for wrongful termination based on whistleblowing.

Background

Stephen Travers worked for EyeKor, Inc., as a senior director of clinical research, and Robert Ward worked for EyeKor as an IT manager. The company developed a proprietary system called Excelsior to manage ophthalmic testing, information gathering, and information analysis related to clinical trials, but Travers and Ward voiced concerns to superiors about the system, including that it didn’t comply with federal rules and regulations concerning data security established by the Food and Drug Administration (FDA) and regulated by the Health Insurance Portability and Accountability Act (HIPAA).

The two employees alleged that in response to their concerns, EyeKor’s CEO became visibly and audibly upset with their refusal to join in the company’s noncompliance. They further alleged that EyeKor’s director of regulatory compliance responded to their concerns by saying, “We fake it until we make it.” The company eventually fired both Travers and Ward.

Employees file suit