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MSPB Urged to Retroactively Apply WEPA

Today the National Whistleblower Center filed an Amicus Curiae brief with the Merit Systems Protection Board (MSPB), in the case of Day v. Department of Homeland Security. At issue is whether the new definition of a protected disclosure set forth in the Whistleblower Protection Enhancement Act will apply to cases pending and/or which arose before that law was passed. The MSPB requested stakeholders to file briefs on the issue.

In its brief, the NWC strongly urged the MSPB to retroactively apply the WPEA’s definition of protected disclosure to all pending cases. The MSPB’s decision will impact the fate of federal employees and whistleblowers that filed claims or suffered retaliation before the WEPA was signed into law on November 27, 2012.

Stephen M. Kohn, Executive Director of the NWC, said “It would be tragic if the reforms the whistleblower community fought for were denied to the very people for whom the law was designed to protect. If the Board decides not to retroactively apply the WEPA, whistleblowers will once again get the short end of the stick. The Board will also send a strong message that its hostility toward whistleblowing is unending. We hope Congress’s action in unanimously passing the WEPA will result in real change.”

The NWC’s brief can be viewed here.

The Office of Special Counsel, which strongly supports retroactively applying the new definition of a protected disclosure, previously filed a brief in this case. OSC's brief can be viewed here.  

 

Why Summary Judgment Must be Removed from the WPEA

TAKE ACTION!

The Whistleblower Protection Enhancement Act (WPEA) may move through Congress in the coming days, or even hours, and contains many important reforms that will help federal employees. However, both the House (H.R. 3289) and Senate (S. 743) versions still have one provision that, if enacted into law, will significantly harm whistleblowers.

This destructive provision permits the Merit Systems Protection Board (MSPB) to dismiss whistleblower claims under a procedural rule known as “summary judgment.” This new rule permits the MSPB “judges” to summarily dismiss a whistleblower claim without ever conducting a hearing. It must be removed before the bill is passed.

One of the main purported benefits of the current MSPB process is streamlined procedures. Under the current law, employees are entitled to a hearing before the MSPB if they can establish jurisdiction. Employees avoid the considerable costs associated with defending a traditional summary judgment motion and instead may address those issues at the hearing on the merits of the case.

Why is this summary judgment procedure for MSPB whistleblower cases a bad development? Here is what will happen in practice. In almost every case the agency will file for summary judgment. In a motion for summary judgment the judge decides, without a full trial, that there is “no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law.” If the judge grants the agency’s motion the whistleblower’s case will be dismissed.

If a new MSPB summary judgment provision becomes law in whistleblower cases it will force the employee to conduct expensive discovery simply to defeat the motion. Given the past substantive and procedural decisions issued by MSPB “judges,” the overwhelming majority of these summary judgment motions will be granted and the whistleblower cases will be dismissed without there ever being a hearing. Over 90 percent of the summary judgment decisions will be against the whistleblower. [Note: MSPB judges are not real judges. They are not subject to any judicial confirmation process and do not have to be attorneys. Their appointments are not reviewed or approved by the Senate Judiciary Committee.]

This proposed summary judgment rule is a major setback for whistleblowers. First, agencies will not settle cases until their summary judgment motions are filed. The pressure to settle a case shortly before a hearing will be eliminated because agencies will wait to see if the case is dismissed before a hearing is even set.

Second, given the 270-day rule for completing adjudications, employees will be forced to comply with short deadlines in responding to summary judgment motions. The agencies will be able to compile an evidentiary record against the employee in a short period of time that the employee will not have the time or ability to contradict.

The summary judgment provision tilts the procedures radically onto the side of the agencies.

In 1978, when Congress initially passed the Civil Service Reform Act and created the MSPB, executive agencies lobbied hard to give the newly created MSPB summary judgment authority. In the end, Congress decided that such authority to summarily dismiss a whistleblower’s case without a hearing was not appropriate for an administrative board designed to protect whistleblowers. Congress recognized that summary judgment could be abused to deny meritorious whistleblowers their day in court. Congress got it right in 1978.

Over the past 35 years, the MSPB’s track record of anti-whistleblower bias has vindicated the 1978 decision to not grant the Board summary judgment power. The whistleblower community cannot allow this significant victory to be lost. The proposed summary judgment provision for whistleblower cases is not an “enhancement” and must be removed from the WPEA. You can TAKE ACTION by sending a letter to Congress.

House Flip Flops on Jury Trials in Whistleblower Protection Act

On Thursday the House Oversight Committee marked up the Whistleblower Protection Enhancement Act. Similar bills have been passed during the past few sessions of Congress but never signed into law. Each new session of Congress brings a new start to the process.

Important language from past versions of the bill has been reRep. Bruce Braley (D-Iowa)moved during this session, undoing significant progress for whistleblower protections. Specifically, the House of Representatives bill (H.R. 3289) in its current form would: 

  • Cut out the right to a jury trial for federal employees.
  • Empower the Merit Systems Protection Board (MSPB) to summarily dismiss whistleblower cases.
  • Block whistleblowers from access to more “liberal” U.S. Courts of Appeal (such as the 9th Circuit). Instead, the government would be able to force their cases into a special court.

During the markup, Rep. Bruce Braley (D-Iowa), pictured right, proposed restoring language that would provide federal employees with a right to trial by jury.

“It gives either party to a proceeding the right to request a trial by jury,” explained Rep. Braley. “Because it’s been endorsed by whistleblower advocacy groups and because it is such a central right embedded in our nations history, it seems right to restore this language to the bill.”

Chairman Darrel E. Issa (R-Calif.) responded by stating, “There are serious concerns about expanding … access to our federal court system.” Ironically enough, in the past he voted in favor of a bill that includes jury trials for federal employees. Twice.

Ranking Member Elijah Cummings (D-Md.) argued that he has yet to hear one good reason to depart from the tradition of a jury trial. In his opinion, “It makes legal and common sense to extend this protection to federal workers.”

You can encourage your Representative to support jury trials for federal employees by Taking Action.

*Kim Le contributed to this post.

Senate Whistleblower Bill called "Bride of Frankenstein"

Julia Davis, a notable whistleblower who prevailed in her struggle against the Department of Homeland Security, recently released an article concerning the reintroduction of the Senate version of the Whistleblower Protection Enhancement Act (S. 743). Ms. Davis notes that one of the main supporters and architects of the current law to protect federal employees, the Whistleblower Protection Act, has referred to it as a “Frankenstein” and how the reform bill (WPEA, S. 743) that is intended to correct the current law, is dangerously close to becoming the “Bride of Frankenstein.” Ms. Davis concisely explains how S. 743 is “replete with deceptive guillotines masquerading as haircut machines” and includes most of the problems that were in the prior version of the bill (S. 372) from last Congress. For example, the Senate bill gives the Merit Systems Protection Board new powers to summarily dismiss a whistleblowers case, allows for an extremely limited right to seek a jury trial in federal court for a small number of employees, and lacks meaningful protections or court access for national security whistleblowers.

Ms. Davis along with the National Whistleblowers Center, Federal Ethics Center, National Security Whistleblowers Coalition, No FEAR Coalition and numerous citizen activists publicly opposed prior efforts to pass a whistleblower bill just for the sake of saying that a bill was passed. In December of 2010, we pointed out seven major flaws or shortcomings in the predecessor Senate WPEA bill, S. 372, that failed to pass the last Congress. 

When the WPEA was reintroduced in the Senate in April of 2011 as S. 743, the Senate sponsors agreed to fix one of the most glaring problems with the bill. Convincing the Senate to make this one important change was no small feat, particularly when powerful Washington lobbyists and groups were working feverishly behind the scenes to urge Congress to pass the badly flawed bill without making any corrections so they could claim a legislative victory. In the face of those odds we prevailed in forcing the Senate to make one truly important change to the WPEA. That was only possible because thousands of citizen activists responded to the call to pressure Congress to correct this problem with the bill.

However, our work is not done. The Senate has only fixed one of the seven major problems with the bill. If we truly want the WPEA to be a true enhancement and not an illusory reform then additional improvements and changes to the bill are needed.

President Obama promised true reform, and court access for all federal employee whistleblowers, during his campaign and we still expect him to fulfill his promise.

Whistleblower Protection for Federal Employee -- Let's Get it Right

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The new Congress gives whistleblower advocates an opportunity to make a new start on the Whistleblower Protection Enhancement Act ("WPEA"). The National Whistleblowers Center (NWC) today calls on legislators and advocates to get it right this time.  Legal protections for federal employees should be enhanced without any provisions that would take away presently existing rights.  If any poison pills are included in new legislation, federal employees will continue to suffer when they raise concerns about waste, fraud and abuse in the federal government.

The obituaries over the defeat of the WPEA in the last Congress (S. 372), have taken on an air of nostalgia over how the forces of "good" were defeated by one lone anonymous Senate "hold," that somehow caused a major landmark whistleblower rights bill for federal employees to be defeated. It is a great political story -- if only it was half-true.  In reality, the final, compromised version of S. 372 was the worst and weakest whistleblower protection law approved by the Senate or the House over the past 30 years.  It was fatally flawed and divisive legislation. 


A Roll Back of Important Rights

On May 14, 2009 over 290 public interest organizations, including all of the members of the Make if Safe Coalition, wrote an open letter to President Obama and Congress calling for the enactment of nine significant reforms in the Whistleblower Protection Enhancement Act.  Unfortunately, S. 372 failed to include seven of these nine requirements.  Worse, it contained two major cutbacks in current rights.

The May 14th letter stated:

It is crucial that Congress restore and modernize the Whistleblower Protection Act by passing all of the following reforms:

 

* Grant employees the right to a jury trial in federal court; [Note:  S. 372 only granted some employees this right, and the right could be completely taken away by the Merit Systems Protection Board]

* Extend meaningful protections to FBI and intelligence agency whistleblowers; [Note:  S. 372 completely violated this demand -- all protections for intelligence agency whistleblowers were stripped from the bill]

* Strengthen protections for federal contractors, as strong as those provided to DoD
contractors and grantees in last year's defense authorization legislation; [S. 372 completely violated this demand.  No protections for federal contractors were included in the bill]

* Extend meaningful protections to Transportation Security Officers (screeners); [TSA employees were covered - this request was honored]

* Neutralize the government's use of the "state secrets" privilege; [No reform of the "state secrets" privilege was contained.  This devastating "privilege" that permits the government to throw out valid whistleblower cases was not reformed or "neutralized"]

* Bar the MSPB from ruling for an agency before whistleblowers have the opportunity
to present evidence of retaliation; [S. 372 not only failed to fix this problem, but it increased the problem by giving the MSPB power to summarily dismiss whistleblower cases without the current right to a hearing on the merits]

* Provide whistleblowers the right to be made whole, including compensatory
damages; [S. 372 honored this demand]

Grant comparable due process rights to employees who blow the whistle in the course
of a government investigation or who refuse to violate the law; [S. 372 did not include this reform]

* Remove the Federal Circuit's monopoly on precedent-setting cases. [S. 372 did not include this reform. The removal of the Federal Circuit's monopoly was limited to a five year time period, and even within that short scope of opportunity, the Office of Personnel Management could transfer cases filed in other circuits back to the Federal Circuit]


A Strong and Effective Bill Was Possible

A comparison with the modern whistleblower protections passed by Congress make it evident why groups like the National Whistleblowers Center, the Federal Ethics Center, the National Security Whistleblowers Coalition and the No-Fear Coalition were extremely troubled by S. 372.

The demands set forth in the May 14, 2009 letter signed by over 290 public interest groups were not "pie in the sky" utopian dreams. There were pragmatic demands that Congress has listened to and repeatedly enacted into law for other groups of whistleblowers. These are the types of rights that should have been included in the final version of S. 372.  Below is a comparison of nine weak provisions contained in S. 372 with the strong versions of reform most recently enacted in the employee protection provisions of the Food Safety Act passed by Congress in December of 2010: 

1.  Right to Court Access and Jury Trial

S.372

Only federal employees who suffered severe retaliation were eligible for court access and a trial by jury, and S. 372 provided no court access whatsoever for FBI or intelligence agency employees.  Additionally, S. 372 created this right as experimental for five years and the right would disappear after 5 years.  No other whistleblower law contains these limitations. 

Food Safety Act

Any employee who suffers an adverse action is entitled to a jury trial in court.

2.  Exhaustion of Administrative Remedies

S. 372

If Merit Systems Protection Board ("MSPB") issues final ruling in 270 days, right to jury trial could be lost forever. 

Food Safety Act

Employees preserve all other rights they have by law to have a case heard in federal court by a jury regardless of administrative rulings.  Whistleblowers will have a right to court access and a jury trial in all cases if they want.

3.  Scope of Protected Activity

S. 372

For the first time in any federal law, the law excluded "minor" violations of law from protection.  The law created a "good faith" defense for managers that would be raised in almost every case alleging violations of law.

Food Safety Act

Employees have the right to blow the whistle on any and all violations of federal law, and there is no "good faith" exception for managers. 

4.  Preliminary Reinstatement

S. 372

The Office of Special Counsel continues to lack the power to order an employee back into his or her job if the OSC finds retaliation.  OSC must file a petition for a stay with the Merits Systems Board.

Food Safety Act

The administrative investigatory agency (Department of Labor) has the authority and is required to order an employee back into his or her job if, on the basis of the preliminary investigation, OSHA finds retaliation.

5.  Cases Heard by Administrative Law Judges

S. 372

A proposal to have real Administrative Law Judges (ALJs) assigned to hear the whistleblower cases was rejected.  Thus, the current system of MSPB "Administrative Judges" (who are not subject to any judicial qualifications whatsoever, and do not even have to be attorneys) remains in place. 

Food Safety Act

If a case is heard at the administrative level, the cases are assigned to statutory ALJs, i.e. Administrative Law Judges who are appointed under the ALJ Act, who must meet mandatory qualifications to be a judge and who are provided extraordinary job protections guaranteeing their judicial independence.

6.  Burden of Proof

S. 372

If a case is heard in court, the burden of proof for the agency is lowered from clear and convincing to preponderance of the evidence, and it becomes much harder for an employee to win.  Specifically, the long-standing "contributing factor" test is repealed for cases that proceed to court.  Thus, instead of employees only having to prove that retaliation was a "contributing factor" in the adverse action, employees would have to demonstrate that retaliation was the "motivating" factor.  Moreover, employees would always bear the burden of proof that the employer's reason for terminating the employee was a pretext.  Under the "contributing factor" test, that burden of proof would have shifted to the employer to demonstrate, by "clear and convincing evidence," that the employee should not have been fired.  S. 372 is the first federal whistleblower law passed in over ten years to repeal the "contributing factor" test in whistleblower court cases.

Food Safety Act

Federal courts are required to apply the pro-whistleblower "contributing factor" test.

7.  All-Circuit Review

S. 372

S. 372 would have permitted all-circuit review of administrative decisions only if the federal government permitted such reviews.  Under S. 372 the Office of Personnel Management was empowered to file a motion and have any appeal transferred to the Federal Circuit for review.  There was no limitation placed on this power.  Also, all-circuit review was considered "experimental" and after five years even the limited right would be extinguished.

Food Safety Act

Employees would have real all-circuit review.  Employers did not have the power to have cases transferred to a pro-employer circuit. In fact, every real judicial circuit would have jurisdiction to hear cases, except the Federal Circuit, which is a special court designed to hear only limited cases. There was no sunset provision in the law.

8.  Cut-Backs in Existing Rights

S. 372

This law contained two drastic reductions in the rights currently enjoyed by federal employees. First, Administrative Judges within the MSPB were authorized to grant summary dismissals of cases solely on the basis of agency affidavits.  Under current law in place since 1978 such summary dismissals by the MSPB have been barred.  Second, the scope of protected disclosures was reduced (i.e. reporting "minor" violations of law would not longer be protected). Prior to S. 372 whistleblower advocates never approved reductions in current rights, but instead tried to strengthen existing laws.

Food Safety Act

The bill only added rights.  It also contained a provision guaranteeing that rights currently existing under state laws were not impacted, and guaranteeing that no private contract could reduce rights.

9.  National Security Exemption

S. 372

With the full support of S.372-advocates, the House of Representatives cutout all of the limited protections for national security whistleblowers who work at intelligence agencies that were proposed.  These employees remain without any coverage under the federal Whistleblower Protection Act. If this cut-back had been approved by the Senate, the possibility of passing a new whistleblower law just covering national security employees was viewed as hopeless, if not completely impossible.

Other laws

No other federal whistleblower law exempts national security employees, or creates this dual structure of protection.   For example, under the False Claims Act, federal contractors are all equally covered, regardless of whether the contractor is working on a top-secret national security project or a highway grant.  There is equal protection for all employees covered under other laws. 

Conclusion

S. 372 was a bad deal for whistleblowers.  It failed to include seven of the nine "crucial" requirements deemed essential by over 290 public interest organizations. It actually contained two material "poison pills" or rollbacks from current employee rights, which would have actually harmed whistleblowers and set back reform.

It is time to stop lamenting over what happened with S. 372.  It is time to stop pointing fingers and placing blame.  It is time to stop obsessing over the past.  It is time for the whistleblower advocacy community to look forward and work together.  It is time to demand that President Obama fulfill his promise to whistleblowers, and that Congress do its job to fully protect all federal employees who report waste, fraud and abuse.

 

NWC Responds to Letter from Whistleblowers

Yesterday, the National Whistleblower Center (NWC) received a letter from whistleblowers concerning our position on the Senate version of the Whistleblower Protection Enhancement Act (S. 372).  Please take the time two read the two response letters.  The first letter is from Dr. Frederic Whitehurst and Jane Turner, two FBI whistleblowers and members of the NWC's Board of Directors.  The second letter is from NWC Executive Director Stephen M. Kohn

NWC RESPONSE TO LETTER FROM WHISTLEBLOWERS (PDF Version)

Dear Whistleblowers:

Thank you for your letter received on December 13, 2010 concerning S. 372 and the position of the National Whistleblower Center. Given the importance of obtaining proper protection for federal employees, I understand and respect the concerns you have raised. I also welcome the opportunity to state our position on these issues. 

The actual differences of opinion on S. 372 developed in the summer of 2009. At that time the NWC was part of the "Steering Committee" of the Make it Safe Coalition (MISC). We were fully engaged in a series of face-to-face meetings at the Old Executive Office Building with representatives from the White House. In response to a survey circulated by the NWC during the 2008 presidential election, a number of candidates (including then candidate Barack Obama, Hilary Clinton, Ron Paul, among others) had pledged to support H.R. 985. This bill had passed the House of Representatives with a strong bi-partisan majority, was fully supported by the whistleblower community and contained true due process rights for all federal employees.

At a meeting I attended, the White House counsel/representative specifically stated that President Obama would not adhere to his promise to support H.R. 985, and that the White House did not care if we accused them of breaking their promise. I was startled. But what followed was worse. The White House proposals for federal employees were a major step backward. The White House proposals for federal employees were a major step backward. Yet they were being sold as advancement, and promises of a White House celebration were in the air. 

As the negotiations progressed, it became clear that the White House and the Senate had formulated a proposal that was radically different from the H.R. 985, and that many of the White House/Senate proposals were in fact rollbacks from current legal rights. 

We could not accept this. At the end of July, 2009 the Senate Homeland Security Committee "marked-up" S. 374.   The bill was terrible. But the MISC Steering Committee issued statements in support of the bill, and praising the White House for its contributions, when in fact those contributions were counterproductive and dangerous.

At that time we were compelled to voluntarily resign our membership in the MISC Steering Committee (although we remain members of the MISC itself). In September, 2010 I wrote a series of 12 blogs on S. 372. Our concerns were well known to all. 

After we opposed S. 372, negotiations commenced to fix the bill. Although not a part of the Steering Committee, we worked hard to fix the bill, and some of our suggested compromises were adopted. Of the twelve major problems we had identified in the blogs, five were fixed. We were also informed by the Steering Committee that the overall strategy was to have the Senate pass the bill, but have the problems with the bill fixed in a conference with the House. 

Shortly before Thanksgiving, a newspaper reporter told me that the Senate bill was about to be approved by Unanimous Consent, and that the House leadership had agreed to approve it, without any changes. Furthermore, I was informed that the White House and the MISC Steering Committee were all in support of this process. 

No one informed us of this change in strategy, except a reporter at the last minute. Additionally, the MISC Steering Committee refused to provide us with a copy of the Senate bill that was about to be approved. We objected to this process, and demanded to see a copy of the bill. Eventually, a source not connected with the Senate staff or the MISC provided us with a copy of the bill after the MISC Steering Committee asked groups to express support for approval of S. 372 without changing a word. 

After reviewing the Senate bill, it became clear why those supporting the new strategy of blind House approval did not share the bill with us. The bill still contained two serious rollbacks of current whistleblower rights, and other compromises that significantly weakened many of its positive features. The bill was a Trojan Horse. Along with the National Security Whistleblowers Coalition and the Federal Ethics Center, we published our views on the bill, linked here.

With this as background, let me address some of your major concerns:

1) “S. 372 is like a good modern dam that will undoubtedly have flaws and require routine maintenance."

The bill contains more than just "flaws," it rolls back important rights. Our main concern is not just that the bill is not "good enough," it is that specific "poison pills" were inserted in the law at the behest of (a) the White House and (b) some of the most anti-whistleblower Senators, that repeal current rights. These are not just flaws. From our perspective, these rollbacks should have been vigorously and aggressively attacked from the start. It is just plain wrong to use an "Enhancement Act" to actually rollback significant whistleblowers rights. The right to protection for raising any violation of law and the right to a hearing are core principles of federal employee whistleblower protection.

2) "For years there were no controls in place to prevent the abuse of information designations to hide embarrassing mismanagement . . ."

When the Civil Service Reform Act was originally passed in 1978, whistleblowers had the right to blow the whistle on "mismanagement." This was a good part of the law.

However, in 1989, as part of the WPA of 1989 "enhancements" advocated by many whom today aggressively support S. 372, that definition was changed. Employees lost their right to blow the whistle on "mismanagement." The term was changed to "gross mismanagement." As a result, the ability of employees to obtain protection for blowing the whistle on mismanagement was dealt a devastating blow.

Significantly, in the Drake decision (which will be further discussed), the Federal Circuit pointed the finger at Congress for creating the "gross" standard qualifying "mismanagement." The Federal Circuit justified some of its bad decisions on that definition.

The Enhancement Act does not fix this. The qualifications on protected disclosures remain, and only disclosures of "gross" mismanagement and "gross" waste of funds are protected. 

Worse, as fully explained in our letter to Congressional leadership, the Enhancement Act seriously compromises the ability of employees to blow the whistle even on violations of law. 

S. 372 actually reverses one of the most important pro-whistleblower decisions issued by the Federal Circuit. In the Drake case, the Merit Systems Protection Board weakened or qualified the rights of federal employees to blow the whistle on violations of law in a manner consistent with prior Circuit Court rulings on gross mismanagement; however, the Federal Circuit in Drakereversed the MSPB and upheld the right to blow the whistle on violations of law without the qualifications urged by the MSPB and federal agency management. 

By reversing the Drake decision, which upheld whistleblower rights to report violations of law, S. 372 would require the Federal Circuit to apply the case law it developed interpreting "gross mismanagement" in cases concerning disclosures of violations of law. Please review our letter to the key Congressional offices for a full explanation of this major problem.

3) "Right now more than ever, S. 372 needs to get passed and the Administration should consider the resurrection of the careers of past whistleblowers who drowned in the raging river."

Passing S.372 has nothing whatsoever to do with forcing the Administration to help whistleblowers who have already been harmed. Even if helpful, the terms of the bill only apply to new cases filed 30 days after the bill is signed into law.

The NWC has always supported making the reform legislation retroactive to September 11, 2001. We have also supported inserting specific provisions into the law that would address some of the more outrageous decisions issued in the past ten years that have harmed employees who have tried to do the right thing and we have repeatedly urged the Obama administration to undertake a review of past cases to reverse unjust dismissals of whistleblowers. 

Unfortunately, S. 372 will not help anyone who lost their case.

If the administration is serious about correcting past wrongs, it is long past the time to start doing that. It is irresponsible for the White House or others to hold out false hopes to whistleblowers, that if they somehow support S. 372, there may be a review of individual cases. This is an odd manner of horse-trading rights. In any event, as an attorney who represents many employees who were harmed by the terrible provisions in the current law, and some of the terrible decisions of the prior administrations, there has been no indication that the White House is serious about addressing injustices created under prior administrations. In fact, we are currently engaged in litigating against the current administration in regard to retaliation that has occurred (or is being continued) under the new White House.

3A) "Frankly, you have been invisible to us when there was still time during this year." 

We have worked tirelessly to try to: (a) fix the Senate bill; and (b) urge the House to hang-tough in the negotiations. For your information, the MISC Steering Committee had asked us to back-off on our public campaigns on this issue, in deference to their inside-negotiation strategy. We accommodated that request, until we learned that the new strategy included a process in which the most serious problems in the Senate bill would not be fixed (or even addressed) by the House. NWC does not advocate an all or nothing approach and was willing to support a reasonable compromise. Unfortunately, the choice presented by the Senate and the White House is to support a bill that rolls back rights and harm whistleblowers or do nothing. We have continually advocated both publicly and privately to Congress that the most serious mistakes and problems in S. 372 that set back whistleblower rights must be fixed. 

3B) "We dismiss your suggestion that it is possible to get stronger legislation through the next Congress as baseless." 

I do not believe that the NWC ever stated a belief that the next Congress would be better, we simply stated that all hope would not be lost in the next Congress because whistleblower protection is a bi-partisan issue. After a very careful review of S. 372 as a whole, it is our professional opinion that the costs of the legislation outweigh the benefits. This conclusion is based primarily on the inclusion of two major "roll-backs" on whistleblower rights. 

4) In regard to one of these roll-backs, you state as follows: "One is about a technical rollback of whistleblower rights against ‘trivial illegality’ that was only shrunk to irrelevance, not completely eliminated. Now at worst it would only apply in a factual scenario that never has come up in any case since 1994. It is too bad this loophole was not canceled outright. But we are more worried about rolling back the Federal Circuit case law used to end our careers in hundreds of decisions of Federal Circuit and MSPB decisions during that time period."

Unfortunately, this statement demonstrates that the community still does not understand the significance of the Enhancement Act's roll-back on the definition of a protected disclosure. 

First, you state that our concern was focused on a "technical rollback" that "was only shrunk to irrelevance, not completely eliminated."

The change in the scope of protected disclosures is not merely "technical." It is a major substantive provision that will cause havoc in real-life cases, and will lead to even more unjust dismissals. The change in definition actually conflicts with current statutory merit system principles, and Executive Order and years of good case law. The way this provision materially harms whistleblowers is set forth in our letter to Congressional leadership.

Second, you state that you "are more worried about rolling back the Federal Circuit case law used to end our careers." But the case at issue here was not used to "end" anyone's career. The Drake case, which the Enhancement Act will statutorily reverse, is one of the very few cases in which a whistleblower actually prevailed in a lawsuit. The Federal Circuit ruled for this employee from the bench, and ordered corrective action. Sadly, S. 372 reverses that important precedent.

It is strange that the Enhancement Act would undermine one of the only safe-harbors existing in federal whistleblower law (i.e. the unqualified right to blow the whistle on any violation of law), and would overturn one of the only pro-whistleblower decisions. 

Indeed, just think of how the MSPB, the Federal Circuit and other courts will view this so-called "enhancement." How will they interpret the Congressional intent behind the Enhancement Act when the law actually reversed one of the Federal Circuit’s only pro-whistleblower decisions?

5) In regard to summary judgment, you state that the new authority given to the MSPB to summarily dismiss employee cases is not a major concern because "the MSPB already has a hybrid summary judgment system." 

Make no mistake about it. The MSPB does not have summary judgment authority, and once it gets that authority, every whistleblower case will be seriously and irreparably harmed. 

First, a little history. Before 1978, federal employees could bring whistleblower cases in federal court under Bivens and they had other court access rights that were extinguished when the Civil Service Reform Act was passed. In 1978, when federal employee whistleblower rights were established under the Civil Service Reform Act, there was a hot debate over giving the MSPB summary judgment powers. As part of the compromises reached, Congress rejected the attempt to give this power to the MSPB. See H.R. Rep. 95-1717, 95th Cong. 2d Sess. 137 (1978).

Thus, this issue has been around since 1978, and under the Enhancement Act, the "community" is apparently ready to forfeit a major right that was obtained in 1978.

Second, executive agencies have, for years, tried to use the Federal Circuit as a vehicle for obtaining summary judgment authority. They have, on numerous occasions, strongly urged the Federal Circuit to approve such authority. The Federal Circuit has rejected these requests. See, e.g., Crispin v. Dept. of Commerce, 732 F.2d 919, 922 (Fed. Cir. 1984).

Thus, what the White House and federal agency management could not obtain from Congress in 1978 or from the Federal Circuit, they are now going to get through an Enhancement Act.

Third, do not confuse the MSPB's current process of dismissing cases at the "jurisdictional" level, with summary judgment. In federal court there are two gate-keeping procedures. The first is a motion to dismiss. If, on the face of your complaint, you simply cannot win, you case can be dismissed. The second is summary judgment.  The MSPB’s long practice of requiring whistleblowers to demonstrate jurisdiction at the initial phase of a case is more analogous to responding to a motion to dismiss than it is to summary judgment.

A strong employment case usually survives a motion to dismiss, as the standards to obtain dismissal are very high.

But summary judgment is much different.   Giving this new power to MSPB will result in a substantial increase in litigation costs in whistleblower cases, a decrease in the ability to obtain settlements and the creation of a "record" that will be very difficult to reverse on appeal. Many cases will be dismissed by MSPB under this new power.

6) It is unfortunate that you have attacked the NWC's motives, and essentially accused us of being greedy lawyers. Although that may be an easy stereotype, our record speaks for itself and this type of discussion is not productive. 

An example of NWC’s record in this area is an award received by NWC’s Advocacy Director, Lindsey Williams, “for demonstrating her commitment through POPULAR to helping poor and other disadvantaged people access affordable and competent legal representation, important civil and criminal justice system reforms, as well as appropriate judicial oversight.”

Read more: http://www.prweb.com/releases/prweb2010/12/prweb4840764.htm

After S. 372 is passed, whistleblowers will need lawyers. Currently, there are very few who will handle federal employee cases on an affordable, contingency fee or pro bono basis. Many of the public interest groups that support S. 372 do not provide any, let alone free, legal services to federal employee whistleblowers. When the law is passed, whistleblowers will need attorneys to represent them.

The key to obtaining representation from an attorney is for the law to be strong enough to justify a lawyer taking the case on an affordable or contingency fee basis. We fear that the problems in S. 372 will not stimulate increased private sector support for federal employees. Our recent survey of private sector attorneys reinforces this position.

Attorneys who are willing to represent federal employees are not your enemy. They have no interest in blocking a law that would help them win cases. Their interest in a strong law mirrors yours.

You also state that attorneys should move aside, and yield to the "whistleblowers" opinion of the law. The NWC is a non-profit organization, and 6 of our 13 board members are former federal employee whistleblowers. The NWC's position reflects an analysis of the law, and incorporates the legal staff’s near century of combined experience in this area to judge the actual merits of S. 372.  

7) You raise a number of points regarding the progressive provisions contained in S. 372. We agree there are some. But in our "Bad Deal" statement, we explained how many of these reforms are not as strong as they are currently being marketed. Many have loopholes. Please review this Statement for a better understanding of our position and our conclusion that the bad parts of the bill outweigh the good parts.

8) We agree that federal employees need "need stronger rights now." But the defects in the law are significant, and any progressive features are not retroactive, and will not help employees who have already filed cases or lost cases. In our considered judgment, after reviewing the bill in its entirety, we remain convinced that S. 372 is not an advance given the poison pills and limitations.

9) In conclusion, you state that "Now, we urge you to stand with us or stand aside." This dichotomy simply does not hold. The NWC's Board of Directors also consists of whistleblowers, six of whom are former federal employee whistleblowers, some of whom have current legal cases. Their voices also have a right to be heard, as do many other whistleblowers whom we assist (and who fully support our position). Free speech is needed within the whistleblower rights community. An open discussion of the relative merits of S. 372 should be encouraged and the motives of those who express their opinion that whistleblower rights will be rolled back by S. 372 should not be attacked for voicing their concerns.

We hope you recognize that the NWC is not strong enough to block this law and our aim is to fix it before it becomes law. S. 372 is supported by the federal managers lobby organization, the White House, the Senate, the majority of the MISC and now the Democratic leadership of the House. Even the most anti-whistleblower Senators (i.e. Senators who opposed many of the more progressive whistleblower laws that were recently approved) support this bill. We are flattered that many think we are "powerful" enough to block this law. This is simply not the case.

If S. 372 can get scarce floor time during the remaining lame duck session it will most likely be passed and signed into law. Although we understand this political reality, we believe that we are morally and ethically bound to voice our viewpoint.   We do not do this lightly, or to be obstructionist. We do it based on our objective analysis of the law, and the need for effective whistleblower protection. Other classes of employees have been able to obtain effective whistleblower protections in this Congress. Federal employees should not have to remain second-class citizens when it comes to the right to blow the whistle.

Respectfully yours,

Stephen M. Kohn
Executive Director
National Whistleblower Center
Washington, D.C.

December 14, 2010

 

NWC Board Members Respond to Letter from Whistleblowers

Yesterday, the National Whistleblower Center (NWC) received a letter from whistleblowers concerning our position on the Senate version of the Whistleblower Protection Enhancement Act (S. 372).  Please take the time to read the two response letters.  The first letter is from Dr. Frederic Whitehurst and Jane Turner, two FBI whistleblowers and members of the NWC's Board of Directors.  The second letter is from NWC Executive Director Stephen M. Kohn.

Letter from NWC Board Members Dr. Frederic Whitehurst and Ms. Jane Turner

Dear Whistleblower Community:

The National Whistleblowers Center (NWC) has received your letter.  As both members of the NWC Board of Directors and federal employee whistleblowers, we would like to respond to your concerns.

We have the highest respect for the attorneys that donate their time and services to the NWC.  Together they have over 90 years of experience representing whistleblowers across the country.  Their knowledge and expertise were instrumental in helping us win our cases, despite all odds, under the current laws.  We would not have survived without them.

The attorneys at the NWC carefully evaluated the Senate version of the Whistleblower Protection Enhancement Act (S. 372) before issuing its statements.  The National Whistleblowers Center stands by its position and believes that it is in the best interest of all whistleblowers.

We encourage everyone to read the NWC's most recent letter to the House and Senate sponsors of the whistleblower bill and the statement "S. 372: A Bad Deal for Whistleblowers" that was issued by the NWC, the Federal Ethics Center and the National Security Whistleblower Coalition. These statements are based on the NWC attorneys’ expert opinion on how the law will impact actual whistleblower cases after the victory celebrations over the law are long passed.  We ask that you carefully review the actual Senate bill and draw your own opinion.  The NWC supports the right of everyone to speak freely about whistleblower protection. However, we urge people to refrain from personal attacks that only distract from the issues at hand.

Respectfully,

Dr. Fredric Whitehurst
Director, Forensic Justice Project
National Whistleblowers Center
FBI whistleblower (Former FBI Supervisory Special Agent)

Jane Turner
Director, FBI Oversight Program
National Whistleblowers Center
FBI whistleblower (25 year veteran)

NWC Calls for Correction of Whistleblower Protection Enhancement Act

Today, the National Whistleblowers Center released a letter sent to the House and Senate sponsors of the Whistleblower Protection Enhancement Act, calling for the elimination of a poison pill inserted into the Senate version of the bill (S. 372). S. 372 cleared the Senate on Friday by unanimous consent and could be voted on by the House this week.

The NWC is urging citizens to TAKE ACTION and demand that the House fix the problems in S. 372 before they pass it.

In the letter, the National Whistleblowers Center stated:
 

"Although we have other concerns with S. 372, the Congressional reversal of the Drake decision will constitute a tragic setback for taxpayers.  It will have significant adverse consequences on the ability of employees to report violations of law and political corruption.   We understand that those in high-ranking political offices are reluctant to support whistleblowers, but stripping employees of their current right to blow the whistle on any violation of law is simply intolerable."

In the Drake decision, the Federal Circuit reaffirmed the right of federal employees to blow the whistle on any violation of law.  The poison pill inserted into S. 372 reverses the Drake decision.

The NWC, along with the National Security Whistleblowers Coalition and the Federal Ethics Center had previously issued a statement calling S. 372 a "bad deal" for whistleblowers.

Senate Passes S.372: A Bad Deal for Whistleblowers

On December 10, 2010, the Senate passed the Whistleblower Protection Enhancement Act (S. 372) by unanimous consent. After a careful review of S. 372, the National Whistleblowers Center, the Federal Ethics Center, and the National Security Whistleblowers Coalition strongly recommend that the bill not be approved in its current form.  We urge the House of Representatives to fix the bill and send it back to the Senate for final approval.  Here is why the bill must be fixed:

1. New Summary Dismissal Authority.  The bill gives the Merit Systems Protection Board (MSPB) sweeping new powers to dismiss whistleblower claims without a hearing.  The MSPB Administrative Judges will now be able to dismiss WPA claims without a hearing, based solely on affidavits filed by executive agencies.  If whistleblowers did not conduct extensive and expensive pre-trial depositions, they will be unable to rebut these affidavits, and their cases will be dismissed.  Even if the whistleblower is able to afford the significant additional fees and costs caused by the new summary dismissal proceedings, based on the track record of the AJs, the vast majority of cases will be summarily dismissed based on agency affidavits.  The opportunity to create a record at a hearing, or use the pre-hearing process as an opportunity to reach a settlement, will be lost.  This is a significant rollback of current rights that will make it more costly and more difficult for whistleblowers to prevail in any actions, despite any of the other reforms contained in the legislation.

Significantly, in one of the handful of positive Federal Circuit decisions, that Court has rejected numerous requests from the executive branch that the authority to dismiss cases summarily be judicially created.  The Court recognized that in 1978, when the Civil Service Reform Act was originally passed, this was a big issue and was hotly contested.  The whistleblowers prevailed at that time.  It would be a shame to lose that hard earned victory in an "Enhancement" act. See Crispin v. Dept. of Commerce, 732 F.2d 919 (Fed. Cir. 1984). The summary dismissal provision, section 118 is linked here.

2. New Powers for the MSPB Without Structural Reform.  S. 372 contains no substantive provisions to reform either the Office of Special Counsel or the MSPB.  These two gatekeeper offices, which have a notoriously bad record on whistleblower cases, remain intact.  Instead of reforming these departments, S. 372 gives significant new authorities to the MSPB, including the power to dismiss cases on the basis of agency affidavits alone, and the power to act as the gatekeeper for court access.  Any meaningful reform of the WPA process should have included substantive corrections to the OSC and MSPB. Recommendations that the MSPB be required to utilize statutory Administrative Law Judges, in place of the current "administrative judges" were rejected.

3. A New Reactionary Definition of Protected Disclosure.  Consistent with other whistleblower laws, the WPA currently protects employees who disclose violations of law, rule or regulation."   This is an unqualified right at was affirmed by the U.S. Court of Appeals for the Federal Circuit in Drake v. AID.  The Drake case is one of the very few cases in the 32-year history of the Civil Service Reform Act in which an employee actually won his case in the Federal Circuit and the agency was ordered by the court to take corrective action.  S. 372 radically changes the definition of protected disclosures, permits agencies to fire employees who report actual violations of law and overturns one of the only good decisions ever to be rendered by the Federal Circuit.   The new definition of protected disclosure also conflicts with the fundamental Merit Systems Principles codified into law at 5 U.S.C. § 2301(b)(9) and the Office of Government Ethics implementation of Executive Order 12731.  See OGE, Standards of Ethical Conduct for Employees of the Executive Branch, Final Rule, 57 Federal Register 35006 (August 7, 1992).

This radical change to the definition of protected disclosure, which is unprecedented in any existing whistleblower law and which is not supported by any current federal court decision, was made in the following sections of S. 372 (which are linked here):  Section 101(a); Section 102; Section 110(b)(1)(A)(i)(I) and (B)(A)(i)(I), and numerous other sections.

4. No All-Circuit Review.  Since the reform efforts commenced, every advocate for fixing the current WPA process strongly urged that the Act be amended to permit "all-circuit" review of MSPB decisions.  Currently, only the Federal Circuit can hear WPA appeals, and every witness and every Member of Congress who addressed the issue soundly condemned that court's record in these cases.  All Circuit review was always viewed as a bottom-line demand. 

S. 372 does not achieve the goal of all-circuit review.  On its face it does not permit all-circuit review for all WPA cases, but limits such review to cases in which the WPA claim is not joined with claims related to other sections of the CSRA. (It is typical that WPA cases are joined with other civil service claims)  Section 108(b)(1)(B).  Second, the provision has terminates in five years, and their is no guarantee that it will be renewed.  Section 108(b)(1)B)

However, the largest loophole in the all-circuit review procedure is an exception that swallows the rule.  The bill permits the Office of Personnel Management to have appeals filed in other judicial circuits transferred back to the Federal Circuit.  Section 108(b).

5. No Meaningful Access to Federal Court.  The supporters of S. 372 point to the provisions in the law that permit some WPA cases to be transferred to federal court for a jury trial as a landmark reform contained in the law.  However, this reform is illusory.  First, the MSPB is empowered to be the gatekeeper for federal court.  The MSPB must approve any initial application for court access, and the standards it must apply for permitting court access are strict.  Given the high standards on demonstrating a right to remove the case, and the reputation of the MSPB, few if any whistleblowers will ever have their case approved for court access.  Section 117(a), new provisions (k)(4).

Second, if the MSPB issues a final order of dismissal in a case within 270 days, the right to federal court access is terminated. Section 117(a), new provisions (k)(3(B). Given the new summary dismissal authority, the Board will not have a problem dismissing whistleblower cases well within the 270 day time period.  Moreover, the Administrative Judges in WPA cases have historically held whistleblowers to very strict time limits, that are often prejudicial to the employees (who lack resources and, because of the very low success rate before the Board, access to attorneys).  The new 270-day deadline will make the MSPB procedures even less employee-friendly than under the current, broken system.

6. The Bill Permits Policy-Based Censorship of Government Scientists.  Supporters of S. 372 have pointed to a provision of the law that prohibits censorship of government scientists as a major breakthrough for federal employee rights.  Again, a close reading of those provisions demonstrates that the opposite is true.  The bill actually would permit censorship of scientific papers and dissenting scientific opinion.  S. 372 explicitly excludes from the definition of protected activity dissenting policy positions advocated by government employees.  Section 102. Furthermore, the Act narrowly defines the circumstances upon which a government scientist can claim improper censorship.  Those circumstances are limited only to "censorship" that "relate(s)" to a gross "violation of law, rule or regulation," "gross mismanagement, a gross waste of funds, an abuse of authority or a substantial and specific danger to public health or safety."  Sec. 110(b).   It will be very difficult for scientists who are being censored to meet this standard and obtain any relief.

7. The Bill Does Little To Aid in National Security-Related Disclosures.  S. 372 contains a very narrow right for employees to make classified whistleblowers to a limited committees in Congress.  This provision adds little to pre-existing law.  See Whistleblower Protection for Intelligence Community Employees; Reporting Urgent Concerns to Congress, 5 U.S.C. App. § 3, §8H.  The new procedures in S. 372 to protect intelligence agency employees from retaliation suffer from the same problems that exist for all other federal employees.

CONCLUSION

The Senate version of the Whistleblower Protection Enhancement Act (S. 372) is a bad deal for whistleblowers. It contains limitations on the right to protected activity and the right to court access that will set a dangerous precedent for other whistleblower laws.  Many of its positive features are thwarted by carefully drafted "fine print" that will negate, in practice, the ability of employees who report waste, fraud and abuse to obtain protection. 

Without major corrections to S. 372, most federal employees who are retaliated against for blowing the whistle will continue to lose their cases.  We call upon the House of Representatives to fix the bill when the House considers it.

NWC Advocacy Director Appears on Fox Business

I had the pleasure of appearing on Fox Business last week to discuss the historic whistleblower provisions included in the recently passed financial reform bill. The qui tam provisions in the bill provide strong protections and financial rewards for reporting financial fraud. These provisions are designed to encourage private employees to report fraud. The FOIA exemption in the whistleblower provision of the bill is necessary to protect the identity of whistleblowers who step forward. 

 

However, for all the good provisions in the bill, Congress still left out an important piece of the puzzle. They failed to include protection for federal employees. So, the employees at the Securities and Exchange Commission (SEC) who are concerned that the agency is not properly investigating a case will still have no protection. We cannot have effective oversight and accountability without both pieces.  Federal employees deserve the same strong whistleblower protections that Congress has repeatedly granted to private employees. The amendments to the Whistleblower Protection Act have been pending in Congress for years and if Congress does not act soon another session will end without the passage of meaningful reform. Congress must immediately pass the House version of the bill, H.R. 1507. You can help by clicking here to send a letter to Congress asking then to pass strong federal employee whistleblower protection.