Tennessee Court of Appeals provides guidance on viability of whistleblowing claims

Under the Tennessee Public Protection Act (TPPA), also known as the "whistleblowing statute,” it’s illegal to fire an employee if the sole cause for the termination was for refusing to either remain silent about or to participate in illegal activity. In two decisions issued this summer, the Tennessee Court of Appeals upheld the trial court’s dismissal of one employee’s whistleblowing claims and reversed the trial court’s dismissal of another employee’s claims. Examination of both cases offers insight about the circumstances in which an employee may present a viable TPPA claim.

First case: Employee can’t prove her claim

Janet Tidwell served as CEO of Holston Methodist Federal Credit Union. Beginning in December 2017, a regulatory agency began auditing Holston, at which time a number of issues were identified in which Holston allegedly failed to comply with certain standards. Tidwell felt she became the scapegoat for the problems. She claimed Holston began “recasting” its problems to make it appear she was responsible, and ultimately, it terminated her in February 2018.

Thereafter, Tidwell sued Holston for defamation and also alleged she was terminated in violation of the TPPA. Specifically, she claimed she was fired because of her “exercises of and faithful compliance with public policy, and her refusal to violate or submit herself to violations in the course of her employment of clear and unambiguous public policy, rules and regulations, constitutional guarantees and statutes,” including as they pertain to credit unions.