The New York False Claims Act (NYFCA) rewards whistleblowers who report instances of government fraud. It is very similar to the Federal False Claims Act but with a few key differences that are very beneficial to whistleblowers.
Like the Federal FCA, the NYFCA imposes penalties on wrongdoers and provides financial rewards and retaliation protections for whistleblowers. However, the NYFCA allows whistleblowers to also report on tax violations in addition to filing their tip anonymously and with strong anti-retaliation protections.
The NYFCA, unlike the Federal FCA, includes tax violations. The program allows whistleblowers to submit tips involving tax violators with a net income (or sales) over $1 million who fail to pay over $350,000 in taxes. In those instances, tax whistleblowers are entitled to 15%-30% of the amount the government recovers from the whistleblowers’ tip.
The NYFCA also recognizes that retaliation is a legitimate fear many employees and industry insiders have when considering blowing the whistle. For that reason, the NYFCA has specific anti-retaliation provisions that protect employees and former employees from being fired, harassed, discriminated against or otherwise harmed because they came forward to report fraud. NYFCA whistleblowers can often employ legal strategies to remain anonymous even after they are paid rewards.
Finally, New York is a global financial and cultural hub. The state’s Attorney General – who oversees the NYFCA and recognizes New York’s position internationally – has indicated a desire to use the NYFCA to its full potential. As a result, there are numerous industries and types of misconduct ideally suited for whistleblowers. This includes finance, healthcare, tax, fine art, and many others.