Page 64 - BusinessWest October 27, 2021

Facing Whistleblower Concerns
Issues Employers Should Be Aware of in Light of the Facebook Case
By Jeremy Saint Laurent, Esq.
Facebook is currently in very murky waters with both the federal government and with its users. Employers should pay
attention to the multitude of issues surround- ing this matter to better understand potential exposure and develop a response plan.
On Oct. 5, after leaking sensitive Facebook documents to the media and the Securities Exchange Commission, whistleblower Frances Haugen testified before Congress. Haugen’s testi- mony provided the Senate subcommittee with a glimpse into how Facebook’s policies negatively impact the mental health of its users, particularly children; creates political and social discord; and undercuts democratic ideologies.
suit of financial growth.
In a recent NPR interview, attorney Andrew
Bakaj, who represents Haugen, stated that “we have made lawful, protected disclosures to the Securities and Exchange Commission and to Congress. Such disclosures are protected both by law and Facebook’s own internal policies.”
Bakaj correctly states that federal whistleblow- er protections
afford employees
and ex-employ-
Lessons Employers Should Learn from the Facebook Whistleblower Fiasco
Employees who come forward to the SEC and/or government regarding perceived miscon- duct are often covered by federal whistleblower protections and other laws, like wrongful ter-
Although dealing with public and agency
scrutiny is not uncharted territory for Facebook
after facing similar allegations during the last two
presidential elections, these newly raised allega- sance. Typically,
tions of misconduct appear to be especially wor- employers have
risome because Haugen was a Facebook insider. no legal recourse
Haugen was employed in a department within if that’s the only
Facebook tasked with investigating how the plat- thing a whistleblower does to report potentially
”
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foreign rivals. In short, Haugen is believable, the company won’t retaliate against the whistle- credible, and convincing because her allegations blower for speaking to Congress.
amount to Facebook disbanding and ignoring
the work of herself and her colleagues in the pur-
they retaliate against an employee or
Whistleblower
Continued on page 66
ees a broad range of legal protec- tions for alerting law enforce- ment, the SEC, and Congress of potential malfea-
“Employees who come forward to the SEC and/ or government regarding perceived misconduct are often covered by federal whistleblower protections and other laws, like wrongful termi- nation in violation of public policy.
mination in violation of public policy. In a 2014 decision, the U.S. Supreme Court held that pri- vately owned companies, in addition to publicly traded companies, may be subject to whistle- blower liability if
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how the network was being used by our nation’s representative told the Senate subcommittee that
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form’s algorithm spreads misinformation and incriminating information. In fact, a Facebook
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