A tax lawyer who worked at the Vanguard Group in Malvern, New York, was terminated from his position after consistently warning his employer that they were considerably underpaying on its taxes. The unlawful practices resulted in Vanguard cheating the US Government out of more than a billion dollars throughout the last several years. Some of the money saved from the illegal tax practices was used to enhance bosses’ salaries.
In 2013, the tax lawyer filed a lawsuit against the company because they would not accept responsibility for intentionally breaking the law even after he made it clear to officials that the situation was extremely serious. He said his concerns were shared with Vanguard lawyers and tax specialists who also regarded the situation as grave and requiring immediate attention. The employee alleges his employment was terminated “in retaliation for his persistent and vocal questioning of Vanguard’s tax practices.”
Vanguard wants the case dismissed because they feel the tax lawyer acted illegally when he shared confidential documents. They maintain he was betraying his employer because he wanted to collect some of the company’s back taxes.
The employee states he was protected under whistleblower laws when he decided to share documents that support his claim with the Securities and Exchange Commission and the Internal Revenue Service. In direct contrast with Vanguard’s accusation that the employee was disloyal to his employer, the ex-employee asserts he had a legal obligation to reveal the truth when Vanguard refused to stop its dishonest practices.
Under federal law, an employee who reports his or her employer for wrongdoing or other illegal activities has legal protection from retaliation under whistleblower laws.
1. Discuss the steps the employee has to take to file the charge
2. What could some of the outcomes be from the EEOC
3. Could the employee have done more about this issue while working there?
4. What would you do if you were the EEOC officer?