Tuesday, January 26, 2016

Minnesota Supreme Court Determines that Whistleblower Claimants Have 6 Years to Sue Their Employers

The Minnesota Supreme Court recently ruled, in Ford v. Minneapolis Public Schools, that lawsuits under the Minnesota Whistleblower Act (MWA) are subject to a 6 year statute of limitations.  The MWA prohibits employers from discriminating against employees for engaging in a number of activities related to reporting, refusing to engage in, or participating in investigations of suspected violations of the law.  Accordingly, lawsuits claiming “whistleblower” violations often involve allegations that an employee reported, either internally or externally, to authorities, that her/his employer was violating the law and the employer retaliated against the employee for making the report.  The state legislature did not include any deadline for employees to bring claims under the MWA, so the courts were left to fashion one.  As a result of the Ford decision, whereas many claims for employment discrimination or retaliation must be brought within 300 days under federal law (Title VII, ADA, ADEA), and within one year under the Minnesota Human Rights Act (MHRA), employees have 6 full years to bring whistleblower claims! What should employers do to protect themselves?    

Due to amendments to the MWA in 2013 that make it much easier for plaintiffs to bring and prevail in whistleblower claims, these suits are on the rise.  Now that plaintiffs have 6 full years to sue under the MWA, Minnesota employers can expect even more whistleblower lawsuits in 2016 and beyond.  The thought of being sued by a discharged employee, many years after the termination, should be very disconcerting to employers.  Employers may wish to deviate from their standard record retention practices, at least where a potential whistleblower employee may be involved.  A typical defense to any whistleblower claim is that the adverse employment action being challenged by the plaintiff, was unrelated to any report the individual may have made and instead was done for legitimate reasons.  Of course in court it takes evidence to defend against claims and so employers are now well advised to maintain such evidence for 6 years. 

Questions? Contact Attorney James Sherman at (952) 746-1700 or email jasherman@wesselssherman.com.