Key Considerations as a Federal Contractor

October 18, 2024
When suing your employer as a federal contractor, there are several key considerations to keep in mind. Here are three crucial factors: 

1. Whistleblower Protections under Federal Law 
Federal contractors are protected by specific whistleblower laws, such as the Whistleblower Protection Act (WPA) and False Claims Act (FCA), which safeguard employees who report illegal activities like fraud, waste, or abuse involving government contracts. Before suing, it is essential to assess whether your claim falls under these protections and if you’ve followed proper internal reporting channels. Failing to do so may weaken your case. 

2. Employment Contracts and Arbitration Clauses 
Review your employment agreement for arbitration clauses, which are common in federal contractor employment contracts. Arbitration clauses often require disputes to be resolved outside of court through arbitration. If such a clause exists, you may need to pursue arbitration rather than litigation. Understanding how this clause impacts your ability to sue in court is crucial. 

3. Sovereign Immunity and Government-Related Restrictions 
As a federal contractor, there are limitations when suing over work involving the federal government. Sovereign immunity protects the U.S. government from being sued without its consent, which can indirectly affect lawsuits related to federal contracts. You need to consider if your lawsuit implicates the government, either directly or through its contractors, which may complicate your case. 

Carefully assessing these factors with legal advice is critical to understanding your rights and the feasibility of a lawsuit.