In Texas, if you work for a private employer, it is often perfectly legal for the employer to fire you for reporting illegal activity. However, there are some notable exceptions to this general rule. One is section 260A.014 of the Texas Health and Safety Code. This 2011 statute prohibits discrimination and retaliation against employees or contractors of nursing homes for reporting a violation of law, including illegal billing practices, Medicare fraud, and abuse, neglect, or exploitation of nursing home residents.

Texas is not known for being especially friendly to claimants of employment discrimination. However, this Texas statute has several provisions that make it unusually plaintiff-friendly. First, unlike many statutes prohibiting employment discrimination and retaliation, section 260A.014 does not require claimants to first seek administrative review of their claim by the EEOC or Texas Workforce Commission before filing suit. Second, unlike other statutes, there is no cap on the amount of emotional, or mental anguish, damages a plaintiff may recover.

Finally, and perhaps most significant, if the employee is suspended or terminated within 60 days of reporting a violation of law, the burden of proof shifts from the employee to the employer. In that case, it is the EMPLOYER’S burden to prove its actions were NOT discriminatory or retaliatory. Thus, what is usually an uphill battle for the employee becomes an uphill battle for the employer.

As of this writing, there are no reported cases under this statute. However, given the recent attention to Medicare fraud, expect to see an increase in these types of cases.