On January 17, 2018, a Portland, Oregon jury issued a verdict of $1 million in damages to a former employee who alleged that his employer retaliated against him for reporting misconduct. Zweizig v. Northwest Direct Teleservices, Inc., 15-cv-02401 (D. Or. 2018).

Plaintiff worked for Defendant from 2001 to 2003. After his employment was terminated, he filed suit against the Company and certain officers alleging he was discharged in retaliation for reporting the overbilling of clients to the Oregon Department of Justice and the Lane County, Oregon District Attorney.  Plaintiff prevailed at arbitration on a claim under ORS 659A.230 (Discrimination for Initiating or Aiding in Criminal or Civil Proceedings Prohibited) and wrongful termination, and after judgment was entered in his favor, Defendants allegedly failed to satisfy the judgment.

After allegedly being unable to collect on the arbitration judgment, in 2014, Plaintiff filed suit in the U.S. District Court for the District of Oregon alleging that Defendants had engaged in fraud to prevent him from enforcing the arbitration judgment. Shortly after filing suit in 2014, Plaintiff alleged the owner of his former employer began to spread false information about him on a blog.  On December 24, 2015, Plaintiff filed another lawsuit against his former employer and its owner alleging that they violated:  ORS 659A.230; ORS 659.199 (Prohibited Conduct by Employer); and ORS 659A.030(1)(f) (Retaliation for Opposing Unlawful Conduct and Aiding & Abetting in the Same) as a result of the aforementioned alleged conduct.  After a two day jury trial, the jury found that the Company’s owner had “aided and abetted [the Company] in retaliating against Plaintiff,” and awarded Plaintiff $1 million in non-economic damages.

This case highlights the risk that a company may be found to have engaged in whistleblower retaliation after the employment relationship has ended.

Posted in State-Specific Whistleblower Claims
Tags: discrimination, retaliation, whistleblower, wrongful termination
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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.

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