ndilTwo courts in the Northern District of Illinois recently ruled that the Illinois Whistleblower Act (IWA) (740 ILCS § 174/5) provides for individual liability.  Bello v. Village of Skokie, No. 14-cv-1718 (N.D. Ill. Sept. 2, 2014 and Dec. 31, 2015); Hower v. Cook County Sheriff’s Office, No. 15-cv-6404 (N.D. Ill. Feb. 16, 2016).

 

Bello

In Bello, the Plaintiff, a police officer, claimed to have been retaliated against after lodging complaints that a personnel policy violated the Uniformed Services Employment and Reemployment Rights Act and the state law counterpart.  He filed suit under the IWA against Defendant Village of Skokie and several individuals within the police department and the Village’s administration.  The individual defendants moved to dismiss on the grounds that they were not an “employer” as defined under the IWA.  Denying the motion dismiss, the court ruled that the IWA expansively defined employer to include individuals “acting on behalf of an entity that one might colloquially understand to be a person’s ‘employer.’”  Defendants subsequently moved for summary judgment, arguing that the claims against the individual defendants should be dismissed because the IWA does not impose individual liability.  The court rejected this position once again.

Hower

In Hower, the Plaintiff, a correctional officer, alleged that he was subjected to false investigations, passed over for promotions and denied special assignments after he complained that the promotional process of his employer, the Cook County Sheriff’s Office, violated the Sheriff’s Employment Action Manual and Illinois statutes.  He filed suit against Sheriff’s Office and several individual defendants under the IWA.  The individual defendants moved to dismiss, arguing that they were not subject to individual liability under the IWA.  Citing to Bello, the court acknowledged that the individual defendants were not the entity that employs the Plaintiff, but ruled that they could nevertheless be liable under the IWA because the “Individual Defendants were acting within the scope of their authority when dealing with [Plaintiff] as an employee.”  Accordingly, the court declined to dismiss the IWA claims against the individuals.

Implications

These decisions stray from a prior decision, which ruled that the IWA did not provide for individual liability.  Hernandez v. Cook County Sheriff’s Office, No. 13-cv-7949 (N.D. Ill. Apr. 3, 2014).  Until there is further guidance from the Illinois Supreme Court (or perhaps the Seventh Circuit) regarding the parameters of the IWA with respect to whether it provides for individual liability, Illinois employers and individual supervisors should be mindful of the new, significant risks that these decisions create.

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Photo of Steven J. Pearlman Steven J. Pearlman

Steven J. Pearlman is a partner in the Labor & Employment Law Department, where he is Head of the Restrictive Covenants, Trade Secrets & Unfair Competition Group and Co-Head of the Whistleblowing & Retaliation Group.

Employment, Restrictive Covenant & Trade Secret, and Whistleblower

Steven J. Pearlman is a partner in the Labor & Employment Law Department, where he is Head of the Restrictive Covenants, Trade Secrets & Unfair Competition Group and Co-Head of the Whistleblowing & Retaliation Group.

Employment, Restrictive Covenant & Trade Secret, and Whistleblower Practice. Steven’s national practice focuses on defending companies in federal and state courts and in arbitration fora against the full spectrum of employment-related claims, including claims of executives; restrictive covenant violations; employee raiding; theft of trade secrets; whistleblower retaliation under the Sarbanes-Oxley Act, the Dodd-Frank Act and similar state laws; and wage-and-hour violations, including class, collective and PAGA actions.

Steven has successfully handled trials in multiple jurisdictions; prevailed in seeking and defending against applications for temporary restraining orders and preliminary injunctions; defended one of the largest Illinois-only class actions in the history of the federal courts in Illinois (over 90k putative class members); and prevailed following his oral arguments before federal and state appellate courts. He brings his litigation experience (beginning in 1998) to bear in counseling clients to minimize risk and avoid or prepare for success in litigation.

Investigations. Reporting to boards of directors, their audit committees, CEOs and in-house counsel, Steven conducts sensitive investigations and has the unusual experience of testifying in federal court in connection with investigations. His investigations have involved complaints of sexual harassment involving C-suite officers; systemic violations of employment laws and company policies; and fraud, compliance failures and unethical conduct.

Thought Leadership and Accolades. Steven was named Lawyer of the Year for Chicago Labor & Employment Litigation in the 2023 edition of The Best Lawyers in America. He is a Fellow of the College of Labor and Employment Lawyers. Chambers has reported:

  • Steven is “one of the best in the country and has a lot of experience”;
  • Steven is as an “outstanding lawyer” who is “very sharp and very responsive,” a “strong advocate,” and an “expert in his field”;
  • He is thoughtful, attentive and demonstrates an acute understanding of matters top of mind for business-minded general counsel; and
  • “He is someone who can navigate the twists and turns of litigation without difficulty.”

Steven was 1 of 12 individuals selected by Compliance Week as a “Top Mind.” Earlier in his career, he was 1 of 5 U.S. lawyers selected by Law360 as a ”Rising Star Under 40” in the area of employment law and 1 of “40 Illinois Attorneys Under Forty to Watch” selected by Law Bulletin Publishing Company. Steven is a U.S. Library of Congress Burton Award Winner for “Distinguished Legal Writing.”

Steven was appointed to Law360’s Employment Editorial Advisory Board and selected as a Contributor to Forbes.com. He has appeared on Bloomberg News (television and radio) and Yahoo! Finance, and is often quoted in leading publications such as The Wall Street Journal. The U.S. Chamber of Commerce has engaged Steven to serve as lead counsel on amicus briefs to the U.S. Supreme Court and federal circuit courts of appeal.

In 2024, Steven received the Excellence in Pro Bono Service Award from the United States District Court for the Northern District of Illinois and the Chicago Chapter of the Federal Bar Association.