Human Resources Management for Public and Nonprofit Organizations

The Legal Environment of Human Resources Management 79

violation of law, rule, or regulation or a direct threat to public interest,

such as fraud, health and safety violations, or corruption. Whistle - blower

laws and policies are designed to protect employees who report wrong-

doing, illegal conduct, internal fraud, and discrimination from retalia-

tion (Harshbarger & Crafts, 2007). The federal government and many

state and local governments have some sort of statutory or common

law whistle - blower or antiretaliation laws. Many nonprofi ts have devel-

oped their own internal whistle - blower policies, as well. Harshbarger

and Craft (2007) note that internal whistle - blower policies can be used

to identify problems in the workplace. With whistle - blower protections in

place, intervention and prevention methods can strengthen and support

a workplace culture of integrity, openness, transparency, and two - way

communication. Even without internal policies, nonprofi ts have been

advised to adhere to the whistle - blowing provisions of the Public

Accounting Reform and Investor Protection Act of 2002, more commonly

known as the Sarbanes - Oxley Act. The act was passed as a reaction to

the Enron, Tyco, Adelphia, and WorldCom corporate scandals that cost

investors billions of dollars and lead to diminished confi dence in the

securities markets.

Public and nonprofi t employers need to be aware of the Whistle Blower

Protection Act of 1989 and the state and local laws in jurisdictions in which

they are located, and they must comply with any internal policies in regard

to whistle - blowers. Public, nonprofi t, and for - profi t employees are typically

covered by whistle - blower or antiretaliation laws. Like the federal whistle -

blower laws, state and local governments have recognized with laws a public

policy exception to the doctrine of employment at will.

Employment at Will

The doctrine of employment at will provides that an employer may discharge

an employee for any reason, not prohibited by law, or for no reason. However,

there are some exceptions:

◆◆◆

• Public policy exception. Under the public policy exception, an employer
  may not fi re an employee if it would violate the state ’ s public policy or a
  state or federal statute.


• Implied contract exception. Under the implied contract exception, an
  employer may not fi re an employee when an implied contract is formed