On June 20, the U.S. Department of Labor announced that it has ordered American Home Protect LLC to reinstate and pay back wages and compensatory damages to a whistleblower who was fired after reporting deceptive business practices to upper management.
American Home Protect LLC is based in Plano, Texas and its parent company, Porch Group Inc. is based in Seattle, Washington. American Home Protect was founded in 2016 and sells repair warranties for appliances and home systems. Porch Group Inc. is a publicly traded software platform that provides companies with moving, utility, renting, warranty, title, agency, loan, and inspection services.
The department’s Occupational Safety and Health Administration opened an investigation after a whistleblower alerted management that customer refunds, after canceling services, were not issued promptly. The company allegedly required customers to complete unnecessary steps in the cancellation process. According to OSHA, the employee reported this violation and was fired as a result. OHSA determined that the companies violated provisions of the Sarbanes-Oxley Act (SOX) and the Consumer Financial Protection Act which prohibits retaliation against workers that raise concerns about illegal financial practices.
The Department of Labor ordered American Home Protect to reinstate the employee, additionally, OSHA instructed the company to pay the whistleblower $109,661 in back wages and $76,289 in compensatory damages.
“The actions of American Home Protect and its parent company Porch Group are wholly unacceptable,” said OSHA Regional Administrator Eric S. Harbin in Dallas. “Federal law protects the right of an employee to report unfair business practices and financial deception without fear of any kind of retaliation. Our investigation found the employee suffered retaliation after responsibly alerting the company that its actions violated the law.”
OSHA’s Whistleblower Protection Program covers over 20 whistleblower statutes to protect employees from retaliation for reporting a wide range of violations. More information on whistleblower protections can be found HERE.
