Tennessee Whistleblower Laws: Protections and How to Report

Tennessee protects private-sector employees from being fired for refusing to participate in or stay silent about illegal activities under the Tennessee Public Protection Act, Tenn. Code Ann. 50-1-304. Employees must show that whistleblowing was the sole cause of their termination to succeed on a claim.

Overview of Tennessee Whistleblower Laws

Tennessee is an employment-at-will state, meaning employers can generally terminate employees for any reason or no reason. However, both statutory and common law protections create important exceptions for whistleblowers. Tennessee's whistleblower framework includes the Public Protection Act, state employee protections, false claims statutes, and several additional laws targeting specific types of retaliation.

Unlike many states that rely solely on statutes, Tennessee also recognizes a common law retaliatory discharge claim, though a 2014 amendment (T.C.A. 29-39-104, amending Tenn. Code Ann. 50-1-304) makes the TPPA the exclusive remedy once it covers the same underlying facts as a common law claim, so the two paths are not always available together. Federal whistleblower protections also apply to Tennessee workers. For a complete overview of those protections, see our guide to Federal Whistleblower Laws.

Common Law Protections for Whistleblowers

Tennessee recognizes a public policy exception to the employment-at-will doctrine. Courts have determined that employers cannot fire employees for reasons that violate clearly established public policy. Since a 2014 amendment to Tenn. Code Ann. 50-1-304, the statute "abrogates and supersedes the common law with respect to any claim that could have been brought" under the TPPA, so an employee generally cannot maintain a separate common law retaliatory discharge claim once a TPPA claim covers the same underlying facts; the TPPA becomes the exclusive remedy for that overlap, applying its stricter "sole cause" standard instead of the common law's "substantial motivating factor" standard. Common law protection still applies independently to retaliation theories the TPPA does not cover, such as workers' compensation retaliation or refusing to commit perjury.

Tennessee courts have recognized common law retaliatory discharge claims for employees who:

• Refuse to commit perjury
• Refuse to violate workplace safety laws
• Exercise meal break and rest period rights
• File claims for workers' compensation benefits
• Serve on a jury

To succeed on a common law retaliatory discharge claim, an employee must show that a clear public policy was violated by the termination. Courts look to constitutional provisions, statutes, and prior judicial decisions to identify these public policies.

Tennessee Public Protection Act

The Tennessee Public Protection Act (TPPA), codified at Tenn. Code Ann. 50-1-304, is the state's primary whistleblower statute for private sector employees.

Who Is Protected

The TPPA protects employees who are discharged for:

• Refusing to participate in illegal activities
• Refusing to remain silent about illegal activities

"Illegal activities" under the TPPA means activities that violate federal or state criminal or civil codes, or any regulation intended to protect public health, safety, or welfare.

The "Sole Cause" Requirement

One important limitation of the TPPA is that the employee must prove the whistleblowing was the sole reason for the termination. This is a higher standard than many other states require. If the employer can show any other legitimate reason contributed to the firing, the claim may fail. Tennessee courts have strictly enforced this requirement.

Statute of Limitations

A lawsuit under the TPPA must be filed within one year of the retaliatory action.

Remedies

Employees who prevail under the TPPA may recover:

• Actual damages
• Reasonable attorney's fees and court costs

The TPPA does not specifically provide for reinstatement, although courts may order other appropriate relief.

State Employee Whistleblower Protections

Tennessee provides separate and broader protections for state government employees under Tenn. Code Ann. 8-50-116.

Protected Activities

State employees are protected from retaliation for reporting or intending to report:

• Violations of state or federal law, rules, or regulations by any person, agency, or contractor
• Willful efforts to carry out such violations
• Fraud against the public, state or federal government, or fellow employees
• Misappropriation of state or federal resources
• Activities that endanger the safety and health of the public or fellow employees
• Gross mismanagement of a program, gross waste of state or federal funds, or gross abuse of authority

Prohibited Retaliation

Employers may not discharge, demote, suspend, alter terms of employment, or discriminate against a state employee for engaging in these protected activities. State employees are also protected from retaliation for refusing to carry out orders that violate state or federal law, regulations, or written policies, or that pose an unreasonable health and safety risk.

Remedies for State Employees

State employees who experience retaliation may recover:

• Actual damages
• Injunctive relief
• Reinstatement to their former position
• Back wages
• Full fringe benefits and seniority rights
• Litigation costs, including reasonable attorney's fees

Tennessee False Claims Act

The Tennessee False Claims Act (TFCA), codified at Tenn. Code Ann. 4-18-101 through 4-18-108, allows whistleblowers to file qui tam lawsuits against individuals or entities that defraud the state government.

What Conduct Is Covered

The TFCA applies to false or fraudulent claims made to the state or any local government entity, including claims related to procurement, transportation, education, construction, and other state-funded programs. Medicaid claims are covered under a separate statute.

Qui Tam Provisions and Whistleblower Awards

Private individuals may bring civil actions on behalf of the state for violations of the TFCA. If the action succeeds:

• If the government intervenes, the whistleblower receives 25% to 33% of the recovered proceeds
• If the whistleblower prosecutes the case without government intervention, the award increases to 33% to 50%
• The whistleblower also receives reasonable expenses, costs, and attorney's fees

Penalties

Violators face civil penalties plus three times the amount of damages sustained by the state.

Tennessee Medicaid False Claims Act

The Tennessee Medicaid False Claims Act (TMFCA), codified at Tenn. Code Ann. 71-5-181 through 71-5-185, specifically targets fraud in the state's Medicaid program.

Penalties and Awards

Individual occurrences of Medicaid fraud can result in:

• Civil penalties between $5,000 and $25,000 per violation
• Treble (triple) damages

In successful qui tam actions under the TMFCA, whistleblowers receive between 15% and 30% of the recovered proceeds, depending on the government's level of involvement.

Additional Whistleblower Protections

Tennessee has several other statutes that provide whistleblower protections in specific contexts.

Education Truth in Reporting and Employee Protection Act

Under Tenn. Code Ann. 49-50-1409, no person or employer may discipline or threaten to discipline any person who reports information under this Act. Remedies include reinstatement, back wages, fringe benefits, seniority rights, actual damages, and attorney's fees.

Discrimination Protections

Tenn. Code Ann. 4-21-301(1) makes it a discriminatory practice to retaliate against individuals who oppose discriminatory practices, file complaints, or participate in investigations or proceedings related to discrimination. Complaints must be filed with the Tennessee Human Rights Commission (THRC) within 180 days, or a lawsuit may be filed within one year.

Remedies include hiring or reinstatement with back pay, restoration to appropriate training programs, compensatory damages, and other appropriate relief.

Sex Discrimination in Wages

Tenn. Code Ann. 50-2-202(c) protects employees who take action to enforce the state's equal pay law. Employers who violate this statute may be found guilty of a Class A misdemeanor. Employees may recover unpaid wages plus liquidated damages that escalate with repeat violations: equal to unpaid wages for a first offense, double for a second offense, and triple for a third offense. Claims must be filed within two years.

False Information Reporting

Under Tenn. Code Ann. 8-4-409, no government employee may be retaliated against for reporting to, or cooperating with, the office of the comptroller of the treasury or another investigating entity about alleged wrongdoing. Retaliators may be found guilty of a Class A misdemeanor. Separately, an employee who knowingly provides false information in such a report commits a Class C misdemeanor, though a good-faith allegation is immune from civil or criminal liability even if it later proves false.

Occupational Safety and Health

Tenn. Code Ann. 50-3-409(a) prohibits retaliation against employees who file complaints, institute proceedings, testify, or exercise rights related to workplace safety. Complaints must be filed with the Tennessee Department of Labor and Workforce Development within 30 days after the violation occurs. Remedies include reinstatement with back pay and other appropriate relief.

Nursing Home Protections

Under Tenn. Code Ann. 68-11-903, nursing homes and homes for the aged cannot discriminate against individuals who file complaints, provide information, or cooperate with government agencies responsible for protecting nursing home residents.

Lawful Employment Act

Tenn. Code Ann. 50-1-706 prohibits retaliation against individuals who report violations of the Lawful Employment Act, which addresses the hiring of workers who have not been verified through the E-Verify system.

Labor Union Protections

Under Tenn. Code Ann. 50-1-202, it is unlawful to discharge a person because the person refused to join or affiliate with any labor union. Violators may be found guilty of a misdemeanor, with each day of continuing violation counted as a separate offense.

How to File a Whistleblower Complaint in Tennessee

Filing a Lawsuit Under the TPPA

Employees who believe they were fired for refusing to participate in or reporting illegal activities may file a lawsuit in the appropriate Tennessee court within one year of the termination.

Filing with the Tennessee Human Rights Commission

For discrimination-related retaliation, contact the THRC at (800) 251-3589. Complaints must be filed within 180 days of the retaliatory action.

Filing with the Department of Labor and Workforce Development

For workplace safety retaliation, contact the Tennessee Department of Labor and Workforce Development at (844) 224-5818. Complaints must be filed within 30 days after the violation occurs.

Filing a Qui Tam Action

To file a False Claims Act or Medicaid False Claims Act lawsuit, the complaint must be filed under seal in state court and served on the state Attorney General, who then determines whether to intervene.

Practical Tips for Whistleblowers

• Keep detailed records of the illegal activity you observed or were asked to participate in.
• Document the timeline of events, including when you reported the activity and when any adverse action occurred.
• Be aware that the TPPA requires proving the whistleblowing was the sole cause of termination, so preserving evidence is critical.
• Consult with an employment attorney experienced in Tennessee whistleblower law before filing.
• Consider whether both common law and statutory claims may apply to your situation.

More Tennessee Laws

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