tech workers | Dolan Law Firm

Tech Employees as Whistleblowers: False Claims Act Summary

Amit writes: “Chris, I work for a tech firm that sells products to a federal agency under a contract requiring a 5 to 20% discount, depending on the product sold, off of the price the company charges private businesses for the same products. My company discounts its list prices if that is what it takes to make the sale to other businesses. This happens all the time. But the discount we give the government is based on solely on our list prices. This bothers me. What can I do about this?”

Amit, you are not alone. Over the past few years, many employees in the tech industry nationwide have stepped forward as whistleblowers because their companies defrauded federal agencies. Promising a federal agency a price discount compared to what private businesses are charged and then not providing the discount when charging for the item violates the False Claims Act.

False Promises To Work In Tech Industry Can Be Basis For Lawsuit

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Today’s question comes from Irving M. from Ingleside Terrace who asks, “I was living in New York working with a steady job in e-commerce. I was approached by a company here in San Francisco which was a start-up company. The job sounded great and I wanted to move to the Bay Area. Since I have a ton of student loan debt I needed to make sure that the job was legit so I asked lots of questions about their products and financing. I was told that they had raised money from venture capitalists and had been through the angel and seed rounds of financing and were about to close on another round of financing. I was told they had a solid product line and I was convinced to quit my job and move to San Francisco only to realize that the company is not doing well and is cash starved. I wouldn’t have left New York had I known the truth. While the company is running out of money, the guy who hired me and made the company seem so great is very rich. What can I do?”

Irving, this is a situation which we see all too often here in the Bay Area. Employer fraud runs back to the gold rush where people were misled as to their prospects so that a ready supply of cheap labor could be provided.

Does Tech Industry Discriminate Against Employees with Disabilities?

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This week’s question comes from Janet D. in Mill Valley (I’m so glad the North Bay is reading the Examiner) who asks: “I work for a tech company in San Francisco, I am being unfairly harassed and discriminated against because of my disability. I was reading my handbook and it says that if I want to seek legal action for a violation of my fair employment rights I have to go to arbitration, waive my right to a jury trial, pay for half of the costs and I can only recover my lost wages but not any pain and suffering or punitive damages yet they “reserve the right” to sue me in court for any claim that I have interfered with their IP rights. Is this true, can they take away my rights like this?”