OSHA Holds Managers Liable in Whistleblower Case

A former senior vice president and two managers are facing thousands of dollars in emotional damages stemming from a whistleblower case. 

OSHA investigators said a Dallas mortgage company fired two employees out of California after they reported to a regional manager and senior vice president of human resources that a branch manager pressured them to pass fees onto loan applicants caused by the company’s internal processing delays. 

As a result of the investigation, OSHA ordered the former vice president and managers to pay $35,000 in emotional damages and the legal fees of the employees who raised the complaints. 

“The U.S. Department of Labor will not tolerate retaliatory actions against workers exercising their rights and those responsible for such actions will be held accountable,” OSHA regional administrator James Wulf said. 

In addition to payment of personal damages, OSHA ordered the company to pay an undisclosed amount in lost back wages and interest to the employees. 

The company must also expunge the employment records of both employees, post an anti-retaliation notice at all its branches and train its employees about their rights.

Personal Liability

This case is an expensive reminder for company managers that anyone can be held personally liable for workplace actions. 

In this case, the agency’s investigators found the nationwide lender violated whistleblower provisions in the Consumer Financial Protection Act by firing the employees.

Employers should be cognizant of OSHA’s whistleblowing enforcement responsibilities. 

Employers should be cognizant of OSHA’s whistleblowing enforcement responsibilities in addition to its traditional safety role. 

OSHA saw an explosion of whistleblower complaints during the pandemic. Still today, the number of whistleblower complaints are much higher than pre-pandemic levels.

OSHA reviewed 2,539 cases in 2020, a 22% increase over the previous year. Last year, the number of cases did fall to just over 2,300. 

---

For more information, contact CBIA’s Phillip Montgomery.