The State of Louisiana has laws in place to protect whistleblowers with legitimate claims. These laws are critical to protecting workers and promoting healthy corporate self-governance. In Louisiana, La. R.S. 23:967 protects an employee whistleblower from retaliatory actions when in good faith, the employee advised the employer of some unlawful practice. It allows the employee to commence a civil action against the employer for the employer’s retaliatory actions. In a recent case, the U.S. Fifth Circuit Court of Appeal spells out the legal elements required to succeed on a whistleblower claim.
Justin Richardson worked for Axion Logistics, LLC, in Baton Rouge. Axion promoted Richardson to general manager within two months of hiring him. Shortly thereafter, Richardson became aware that two Axion employees were fraudulently billing an Axion client. Richardson reported these acts up the chain of command, including Axion’s president, its CEO and its CFO.
At one point, Axion’s CEO requested that Richardson not to tell anyone about the matter. Axion’s CEO and president allowed the illegal practice when they refused to inform the client. Subsequently, Richardson expressed to the CFO that Richardson would notify the client if Axion was unwilling to do so. A few weeks thereafter, Axion management criticized Richardson’s job performance. The president then terminated Richardson’s employment within a month, on the grounds that Richardson “was not a good fit” for the company.