Indiana Whistleblower Laws: Protections and How to Report

Indiana protects whistleblowers through several overlapping statutes. The Indiana False Claims and Whistleblower Protection Act (IC 5-11-5.5) covers fraud against the state, while IC 4-15-10-4 shields state employees and IC 22-5-3-3 protects workers under public contracts. Private sector employees outside government contracts rely on Indiana common law protections.

Overview of Indiana Whistleblower Laws

Indiana follows the employment-at-will doctrine, which means employers can terminate workers for any reason or no reason at all. However, the state has carved out important exceptions that shield employees who speak up about wrongdoing.

Indiana whistleblower protections come from two sources: statutory law and common law. Statutory protections are laws passed by the Indiana General Assembly covering specific areas like fraud, discrimination, and workplace safety. Common law protections are principles developed by Indiana courts to fill gaps that statutes do not address.

This guide covers every major whistleblower protection available under Indiana law, including who qualifies, what activities are protected, how to file a complaint, relevant deadlines, and the remedies available to employees who face retaliation.

For protections that apply regardless of which state you live in, see our guide to Federal Whistleblower Laws.

Common Law Protections for Indiana Whistleblowers

Indiana courts recognize a public policy exception to the employment-at-will doctrine. When a whistleblower brings a wrongful termination case, the court examines existing statutes and constitutional provisions to determine whether public policy supports the employee's claim.

For example, if a statute protects workers from age discrimination, that statute reflects a public policy against age-based employment decisions. An employer who fires a worker for reporting age discrimination may be found to have violated that public policy.

Indiana courts have recognized public policy protections for employees who:

• File a workers' compensation claim after a workplace injury.

• Refuse to carry out an illegal act at an employer's direction.

• Exercise a right that a state or federal statute specifically endorses.

These common law claims are filed as civil lawsuits in Indiana state court. The general statute of limitations for such claims is two years from the date of the retaliatory action.

Indiana False Claims and Whistleblower Protection Act (IC 5-11-5.5)

The Indiana General Assembly passed the Indiana False Claims and Whistleblower Protection Act in 2005. This law targets fraud against the state and gives private citizens the power to take action.

What the Law Prohibits

Under IC 5-11-5.5-2, a person is liable if they knowingly:

• Present, or cause to be presented, a false or fraudulent claim for payment to the state.

• Make, use, or cause to be made a false record or statement material to a fraudulent claim.

• Conspire to commit any of these violations.

• Conceal or improperly avoid an obligation to pay money or transmit property to the state.

Qui Tam Lawsuits

The Act allows private individuals (called "relators") to file qui tam lawsuits on behalf of the State of Indiana against those committing fraud. If the lawsuit succeeds, the whistleblower receives a share of the recovered funds:

Civil Penalties

Violators face civil penalties of at least $5,000 per false claim, with no maximum cap, plus up to three times the amount of damages the state sustained.

Retaliation Protections Under the False Claims Act

Employees who face retaliation for reporting fraud or participating in a qui tam action may be awarded:

• Two times their back pay, plus interest.

• Reinstatement at the seniority level they would have held.

• Compensation for litigation costs, reasonable attorney fees, and any other damages.

Limitation for State Employees

Current or former state employees cannot bring a qui tam action under this law unless they first exhausted internal procedures for reporting the false claim, and the state failed to act on the information.

Indiana Medicaid False Claims and Whistleblower Protection Act (IC 5-11-5.7)

Indiana also has a separate Medicaid False Claims and Whistleblower Protection Act that specifically targets fraud in the Medicaid program under IC 12-15.

Civil Penalties for Medicaid Fraud

A person who knowingly submits a false Medicaid claim faces:

• A civil penalty of at least $5,500 and up to $11,000 per violation (adjusted for inflation).

• Up to three times the amount of damages the state sustained.

• Liability for the costs of the civil action.

Qui Tam Provisions

Like the general False Claims Act, this statute allows private citizens to file qui tam lawsuits. Successful whistleblowers receive 15% to 30% of the proceeds, plus reasonable attorney fees and costs.

Retaliation Protections

Employees who suffer retaliation for reporting Medicaid fraud are entitled to remedies including reinstatement, back pay, and attorney fees.

State Employee Protections (IC 4-15-10-4)

The State Employees' Bill of Rights under IC 4-15-10-4 provides whistleblower protections specifically for Indiana state government employees.

Protected Reporting

State employees may report in writing the existence of:

• A violation of federal law or regulation.

• A violation of state law or rule.

• A violation of an ordinance of a political subdivision.

• The misuse of public resources.

Reports should be made to the employee's supervisor or to the Indiana Inspector General.

Prohibited Retaliation

A state agency may not take the following actions against an employee who makes a good faith report:

• Dismissal from employment.

• Withholding salary increases or employment-related benefits.

• Transfer or reassignment.

• Denial of a promotion the employee would have otherwise received.

• Demotion.

Requirement for Good Faith

Employees must make a reasonable attempt to verify the accuracy of the information they report. An employee who knowingly furnishes false information may face disciplinary action, including suspension or dismissal.

Criminal Penalties for Employers

An employer who violates IC 4-15-10-4 by retaliating against a state employee is subject to criminal prosecution under IC 35-44.2-1-1.

Protections for Public Contractor Employees (IC 22-5-3-3)

Private employers working under a contract with a public agency are prohibited from retaliating against employees who report wrongdoing. This protection is found in IC 22-5-3-3.

Protected Activities

Employees of public contractors may not be discharged, have their terms of employment altered, or face discrimination for:

• Disclosing a violation of federal law or regulation.

• Disclosing a violation of a state rule or law.

• Disclosing a waste of public resources.

• Disclosing a misuse of authority.

Reporting Procedures

Employees must first report the violation to their employer, unless the employer is the one committing the violation. If the employer is the violator, the employee may report in writing to the employer or to an appropriate government agency, such as the county prosecutor, attorney general, or state personnel director.

If no good faith effort is made to correct the problem within a reasonable time, the employee may submit a written report to any person, agency, or organization.

Penalties for Violations

Employers who violate IC 22-5-3-3 may be found guilty of a Class A infraction.

Protections for Political Subdivision Employees (IC 36-1-8-8)

Employees of political subdivisions, which include cities, towns, counties, townships, school districts, and public libraries, receive similar protections under IC 36-1-8-8.

Protected Activities

Political subdivision employers may not discharge, alter terms of employment, or discriminate against an employee for:

• Reporting a violation of federal law or regulation.

• Reporting a violation of a state law or rule.

• Reporting a violation of an ordinance of a political subdivision.

• Reporting the misuse of public resources.

Reporting Procedures

Employees must first report to a supervisor or appointing authority. If that person is the one committing the violation, the employee may report in writing to the supervisor, the appointing authority, or any official or agency entitled to receive a report from the state ethics commission.

If no good faith effort is made to correct the problem within a reasonable time, the employee may submit a written report to any person, agency, or organization.

Penalties for Violations

Employers who violate IC 36-1-8-8 may be found guilty of a Class A infraction.

Additional Statutory Protections

Civil Rights and Discrimination (IC 22-9-1-6)

Employers may not discharge or discriminate against an employee for filing a complaint or participating in an investigation, hearing, or proceeding conducted by the Indiana Civil Rights Commission (ICRC). The ICRC enforces protections against discrimination based on race, religion, color, sex, disability, national origin, or ancestry under IC 22-9-1-6(g).

Age Discrimination (IC 22-9-2-8)

It is an unfair employment practice for an employer to discharge or discriminate against an employee for providing evidence concerning Indiana's age discrimination laws. This protection applies to individuals who are at least 40 years old but younger than 75. Employers may not discharge, refuse to hire, or otherwise discriminate based on age under IC 22-9-2-8.

Occupational Health and Safety (IC 22-8-1.1-38.1)

Employers may not discharge or discriminate against an employee for:

• Filing a complaint or starting a proceeding under Indiana's Occupational Safety and Health Act (IOSHA).

• Testifying in a proceeding under IOSHA.

• Exercising any right provided by IOSHA on behalf of themselves or others.

This protection is codified at IC 22-8-1.1-38.1.

Minimum Wage (IC 22-2-2-11)

Employers may not discharge, alter terms of employment, or discriminate against an employee for:

• Starting or participating in an action to recover wages.

• Demanding payment of wages owed under Indiana minimum wage laws.

This protection is found at IC 22-2-2-11.

How to File a Whistleblower Complaint in Indiana

The process for filing a whistleblower complaint depends on the type of violation being reported.

IOSHA Whistleblower Protection Unit

For workplace safety retaliation complaints, contact the Indiana Department of Labor Whistleblower Protection Unit:

• Online: Submit a complaint through the IOSHA Whistleblower Protection Online Complaint Form.

• Phone: Call (317) 232-2693.

• Email: Send your complaint to OSHAcomplaint@dol.in.gov.

• Mail: Indiana Department of Labor, IOSHA, Attention: Complaint Duty Officer, 402 West Washington Street, Room W195, Indianapolis, Indiana 46204.

• Fax: (317) 234-4428.

Indiana Civil Rights Commission (ICRC)

For discrimination-based retaliation, file a complaint with the Indiana Civil Rights Commission by calling 1-800-457-8283 or (317) 232-2600.

Age Discrimination Complaints

Age discrimination retaliation complaints should be filed with the Indiana Department of Labor at (317) 232-2655.

False Claims Act Complaints

Qui tam lawsuits under the Indiana False Claims Act or Medicaid False Claims Act are filed in Indiana state court. These cases require an attorney because the complaint must be filed under seal and served on the Indiana Attorney General.

Filing Deadlines at a Glance

Missing a deadline can permanently bar your claim. The table below summarizes the key filing deadlines for Indiana whistleblower complaints.

Remedies and Penalties for Retaliation

The remedies available to whistleblowers depend on the specific statute under which they file their claim.

General Remedies

For most whistleblower retaliation claims, a court may order any combination of:

• Reinstatement to the employee's previous position.

• Back pay for lost wages.

• Front pay if reinstatement is not practical.

• Restoration of lost benefits.

• Injunctive relief to stop ongoing retaliation.

• Other compensatory damages the court deems appropriate.

False Claims Act Remedies

Under the Indiana False Claims and Whistleblower Protection Act, retaliation remedies are more generous:

• Double back pay, plus interest.

• Reinstatement at the seniority level the employee would have reached.

• Reasonable attorney fees and litigation costs.

Criminal Penalties

Retaliation against state employees who report violations can result in criminal prosecution under IC 35-44.2-1-1. Employers of public contractors and political subdivision employees who retaliate face Class A infractions.

Federal Whistleblower Protections That Apply in Indiana

In addition to state law, Indiana employees may also be protected by federal whistleblower statutes. These include:

• Sarbanes-Oxley Act: Protects employees of publicly traded companies who report securities fraud or shareholder deception.

• Dodd-Frank Act: Allows individuals to report securities violations to the SEC and receive financial awards.

• False Claims Act (Federal): Permits qui tam lawsuits against those defrauding the federal government, with whistleblower rewards of 15% to 30%.

• OSHA Section 11(c): Protects employees who report workplace safety violations to federal OSHA.

• Title VII of the Civil Rights Act: Prohibits retaliation against employees who report workplace discrimination to the EEOC.

For a complete overview, visit our guide to Federal Whistleblower Laws.

More Indiana Laws

• Indiana At-Will Employment Laws
• Indiana Employee Monitoring Laws
• Indiana Final Paycheck Laws
• Indiana Workers Compensation Laws