On March 13th, 2023, the Occupational Safety and Health Administration’s (OSHA) new rule outlining whistleblower protections under the federal Taxpayer First Act (TFA) took effect. Congress enacted the TFA in 2019 and required the Internal Revenue Service (IRS) to notify a taxpayer if the IRS or a Federal or State agency recommends disciplinary action against an employee found to have accessed or disclosed the taxpayer’s return or return information without permission. Whistleblowing is the lawful disclosure of information a discloser reasonably believes evidence of wrongdoing to an authorized recipient.
New Whistleblower Protections
This new rule protects whistleblowers who testified about tax violations or assisted in a government investigation of tax violations. Actions protected by the rule include any “lawful act” by an employee to provide information or otherwise assist in “an investigation regarding underpayment of tax or conduct which the employee reasonably believes constitutes a violation of the internal revenue laws or any provision of Federal law relating to tax fraud.” The rule prohibits retaliation against employees who report tax fraud or underpayment of taxes.
The following are considered illegal retaliation:
- Firing or laying off
- Demoting
- Denying employee benefits
- Failing to hire or rehire
- Reducing pay or hours
- Denying overtime or promotion
- Making threats
- Reporting an individual to the police or immigration authorities
Employees must file complaints within 180 days of the retaliatory action with OSHA by visiting their local OSHA office, sending a written complaint to the closest OSHA office, or filing a complaint online.
What Now?
While we continue to wait for more information on this ruling, it’s essential that you take action now. Fortunately, when you partner with a professional employer organization (PEO) such as GMS, you gain a partner who is there by your side. A PEO can help with whistleblower protections by providing a safe and secure mechanism for employees to report any unethical or illegal behavior they observe in the workplace without fear of retaliation. Our HR experts can help you develop and implement a reporting system that provides a straightforward and confidential method for employees to report concerns. Contact us today to learn more.