Question

Health Net, California's fourth-largest health insurer, has agreed to pay $340,000 for violating securities laws on whistleblower awards. Since 2010, Health Net used illegal severance agreements to require employees to waive their ability to collect whistleblower awards in their departing severance agreements. This prevented any departing employees from speaking to state and federal officials about company violations. Although Health Net did not admit or deny the findings, it agreed to pay the penalty and contact all employees who had signed the severance agreements between August 12, 2011, and October 22, 2015, to inform them that they were not prohibited from exercising their rights as whistleblowers.

Which specific law did Health Net violate when it required its departing employees to sign the severance agreement?

Why is it important for employees to be able to exercise their right as whistleblowers?

What would happen if Health Net terminated a patient who acted as a whistleblower?

Answer 1

#. According to the SEC's order, Health Net Inc. violated federal securities laws by taking away from departing employees who wanted to receive severance payments and other post-employment benefits .

#. It is in the public interest that the law protects whistleblowers so that they can speak out if they find malpractice in an organisation. As a whistleblower you're protected from victimisation if you are: a worker. revealing information of the right type by making what is known as a 'qualifying disclosure'

#. Back pay: wages and benefits the patient has lost as a result of being wrongfully fired. Reinstatement or front pay: you can ask the court to give you back your job or, if that's not feasible, to award you the wages you will lose going forward until you find a new job.