The U.S. Office of Special Counsel (OSC), an independent federal agency dedicated to safeguarding whistleblowers, has announced a significant policy change aimed at incentivizing federal employees to report misconduct. This new policy recommends that federal agencies provide monetary awards to whistleblowers in appropriate cases, highlighting the critical role whistleblowers play in promoting government accountability and efficiency.
Details of the New Policy
Under this policy, OSC will evaluate whistleblower disclosures to determine if they merit a recommendation for a monetary award. Whistleblower disclosures can originate from both current and former federal employees, as well as applicants for federal employment. The focus will be on substantiated allegations that lead to cost savings, cost recoveries, or improvements in government operations.
Appropriate cases are determined on an individual basis and primarily involve substantiated disclosures that could lead to cost savings or cost recovery for the government or those receiving government services. This includes cases where the agency investigation of disclosures uncovers fraud or waste, or where substantiated disclosures enhance the efficiency of the federal government.
There may also be other appropriate cases that don’t involve cost savings, such as disclosures that improve health or safety, expose criminal behavior, or potentially lead to significant improvements or corrections to policies or practices.
Agencies have the authority to grant awards up to $10,000, with larger awards—ranging from $10,001 to $25,000—requiring approval from the Office of Personnel Management (OPM). Awards exceeding $25,000 must receive Presidential approval. While OSC can recommend awards, it cannot compel agencies to grant them; the final decision lies with the respective agency heads.
Criteria for Receiving an Award
The OSC will consider several factors when recommending awards, including:
- Public Interest Impact: The significance of the disclosure’s effect on public welfare.
- Financial Benefits: The tangible cost savings or financial recovery resulting from the disclosure.
- Evidence Strength: The level of substantiation supporting the disclosure.
- Whistleblower Initiative: The degree of risk or perseverance demonstrated by the whistleblower.
- Nature of the Information: Whether the information was new, publicly available, or previously known.
- Eligibility: The whistleblower’s eligibility for receiving an award.
- Other Relevant Factors: Any additional considerations relevant to the recommendation.
Importantly, whistleblowers involved in the wrongdoing, or those who provided false information, will not be eligible for awards.
“OSC is committed to ensuring whistleblowers are protected and heard, and, when appropriate, they should be rewarded for their contributions to public service,” said Senior Counsel Charles Baldis.
By recognizing and rewarding the courage of whistleblowers, OSC intends to encourage more individuals to report misconduct without fear of retaliation. Federal employees now have an added incentive to step forward, knowing their contributions to ethical governance may be rewarded both morally and financially.
OSC’s Disclosure of Wrongdoing Overview contains information on how federal employees (both current and former) as well as applicants for federal employment can blow the whistle on wrongdoing.
