Legal Question in Business Law in Ohio

Business Ethics (follow-up)

I'm sorry, I was not clear in my previous question, I appeared to equivocate on the word ''report.'' Please allow me to restate: If an employee has discovered a flaw in a business' financial reporting that affects reimbursement/loss to clientele and/or contracted parties, and makes a manager aware of that problem, only to have the manager request the employee report the error anyway, is it illegal for the employee to act on the manager's orders and allow the error to persist, causing/continuing the loss to the client or other contracted party? Is there any legal requirement for the employee to advise authorities of such activity? If the matter would be brought to court, would the employee be legally culpable in any way, when it was the manager who made the decision? Thanks again.


Asked on 3/01/09, 9:46 pm

2 Answers from Attorneys

David Weilbacher, Esq. Attorney at Law

Re: Business Ethics (follow-up)

Ultimately the company will be responsible; not you.

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Answered on 3/01/09, 10:32 pm
J. Norman Stark J. Norman Stark , Attorney, Architect

Re: Business Ethics (follow-up)

Dear Concerned Employee:

Ohio law provides employee protection:

***{�17} R.C. �4113.52, Ohio's whistleblower statute, prohibits an employer from taking disciplinary or retaliatory action against an employee for reporting violations of the law. Protection as a whistleblower requires an employee's strict compliance with the dictates of R.C. 4113.52. Contreras v. Ferror Corp. (1995), 73 Ohio St.3d 244, 246-247.

{�18} R.C. �4113.52 states, in applicable part:

{�19} "(3) If an employee becomes aware in the course of the employee's employment of a violation by a fellow employee of any state or

{�22} "(2) Withholding from the employee salary increases or employee benefits to which the employee is otherwise entitled;

{�23} "(3) Transferring or reassigning the employee;

{�24} "(4) Denying the employee a promotion that otherwise would have been received;

{�25} "(5) Reducing the employee in pay or position.

{�26} "(C) An employee shall make a reasonable and good faith effort to determine the accuracy of any information reported under division (A)(1) or (2) of this section. If the employee who makes a report under either division fails to make such an effort, the employee may be subject to disciplinary action by the employee's employer, including suspension or removal, for reporting information without a reasonable basis to do so under division (A)(1) or (2) of this section.

{�27} "(D) If an employer takes any disciplinary or retaliatory action against an employee as a result of the employee's having filed a report under division (A) of this section, the employee may bring a civil action for appropriate injunctive relief or for the remedies set forth in division (E) of this section, or both, within one hundred eighty days after the date the disciplinary or retaliatory action was taken, in a court of common pleas in accordance with the Rules of Civil Procedure.*** (Emphasis provided). Miller v. Rodman Pub.Library Bd. of Trustees, 2009-Ohio-573. (CA5 STARK, Decided February 9, 2009.)

Consult an experienced Attorney to assist, guide and advise you, ASAP.

Good luck!

Sincerely, J. Norman Stark

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Answered on 3/02/09, 7:46 am


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