California Minimum Wage – What California Workers Need to Know

Mar 11, 2025 | KLF Blog

Minimum Wage in California is $16.50 Per Hour, Higher for Some Workers // 

Kehoe Law Firm, P.C. is making sure workers in California know that as of January 1, 2025, the minimum wage is $16.50 per hour for all employers, unless covered by a higher minimum wage specific to an industry or a locality. California Minimum Wage Order (MW-2025).

California Minimum Wage for Fast Food Workers & Certain Health Care Workers

In California, there is a higher minimum wage for Fast Food Workers and a higher minimum wage for certain Health Care Workers.

Also, some California cities and counties have a higher California minimum wages than the state’s rate.

Click here for a list of city and county minimum wages in California. 

What Is the Difference Between the Local, State, and Federal Minimum Wage

Most employers in California are subject to both the federal and state minimum wage laws, and although there are higher California minimum wage rates in certain localities, the employer must follow the stricter standard, i.e., the one that is the most beneficial to the employee.

Thus, since California’s current law requires a higher minimum wage rate than federal law, all employers in California who are subject to both laws must pay the California minimum wage rate, unless their employees are exempt under California law.

Further, if a local entity (city or county) has adopted a higher minimum wage, employees must be paid the local wage where it is higher than the state or federal minimum wage rates.

Exceptions to Paying the Minimum Wage

There are some employees who are exempt from the minimum wage law, such as outside salespersons, individuals who are the parent, spouse, or child of the employer, and apprentices regularly indentured under the State Division of Apprenticeship Standards. 

There is an exception for learners, regardless of age, who may be paid not less than 85 percent of the minimum wage rounded to the nearest nickel during their first 160 hours of employment in occupations in which they have no previous similar or related experience.

There are also exceptions for employees who are mentally or physically disabled, or both, and for nonprofit organizations such as sheltered workshops or rehabilitation facilities that employ disabled workers.

Can an Employee Agree to Work for Less than the Minimum Wage?

No. The minimum wage is an obligation of the employer and cannot be waived by any agreement, including collective bargaining agreements. 

Can an Employer Use Tips as a Credit Toward the Obligation to Pay the California Minimum Wage?

No. An employer may not use an employee’s tips as a credit toward its obligation to pay the minimum wage per hour.

Source: State of California, Department of Industrial Relations 

What Can You Do if You are Not Paid the California Minimum Wage?

If you have not been paid the required California minimum wage, you may have legal claims.  Our experienced class action attorneys are dedicated to protecting workers’ rights. For a free, no-obligation evaluation of potential legal claims, send us a message or contact Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected], [email protected]. 

About Kehoe Law Firm, P.C.

Kehoe Law Firm, P.C. is a nationally recognized, plaintiff-side class action law firm dedicated to protecting investors and consumers from fraud and misconduct. Our attorneys have served as Lead or Co-Lead Counsel in major securities cases, recovering over $10 billion for institutional and individual investors. We litigate securities fraud, fiduciary breaches, unfair mergers and acquisitions, and antitrust violations, while also representing whistleblowers and advocating for victims of data breaches, consumer fraud, vehicle and product defects, employment law violations, retirement plan mismanagement, and other corporate and business misconduct. With a results-driven approach, we pursue justice and substantial recoveries for those we represent.

KLF’s class action legal services are provided on a contingency-fee basis, meaning clients are not responsible for any fees or litigation expenses. 

 

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Kehoe Law Firm, P.C.
2001 Market Street
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Philadelphia, PA 19103

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Reported Consumer Fraud Losses Increase to $12.5 Billion

Mar 10, 2025 | KLF Blog

Of Reported Consumer Fraud Losses, Consumers Report Losing $5.7 Billion to Investment Scams //

New FTC data reveals that consumers reported losing more than $12.5 billion to fraud in 2024, a 25% increase from 2023.

Consumers reported losing more money to investment scams—$5.7 billion—than any other category in 2024. Imposter scams were the second highest reported loss at $2.95 billion.

In 2024, consumers reported losing more money to scams where they paid with bank transfers or cryptocurrency than all other payment methods combined.

FTC 2024 Top Frauds Summary Chart

FTC Received 2.6 Million Consumer Fraud Reports in 2024 – Imposter Scams Top Reported Scam Category

The FTC received fraud reports from 2.6 million consumers last year, nearly the same as in 2023. The most commonly reported scam category was imposter scams. Losses to government imposter scams in particular increased $171 million from 2023 to a total of $789 million in 2024.

Online shopping issues were the second most commonly reported in the fraud category. This was followed by business and job opportunities, where reported losses totaled $750.6 million—up nearly $250 million from 2023.

The other most reported categories of fraud were investment-related reports and internet services.

Job and Employment Agency Scams Show Significant Growth

Showing major growth in recent years within business and job opportunities is the subcategory job and employment agency scams, where the number of reports tripled from 2020 to 2024, and the amount consumers reported losing to these scams jumped from $90 million to $501 million in that time.

For the second consecutive year, email was the most common way consumers reported being contacted by scammers. Phone calls were the second most commonly reported contact method for fraud in 2024, followed by text messages.

Source: FTC.gov

About Kehoe Law Firm, P.C.

Kehoe Law Firm, P.C. is a nationally recognized, plaintiff-side class action law firm dedicated to protecting investors and consumers from fraud and misconduct. Our attorneys have served as Lead or Co-Lead Counsel in major securities cases, recovering over $10 billion for institutional and individual investors. We litigate securities fraud, fiduciary breaches, unfair mergers and acquisitions, and antitrust violations, while also representing whistleblowers and advocating for victims of data breaches, consumer fraud, vehicle and product defects, employment law violations, retirement plan mismanagement, and other corporate and business misconduct. With a results-driven approach, we pursue justice and substantial recoveries for those we represent.

KLF’s class action legal services are provided on a contingency-fee basis, meaning clients are not responsible for any fees or litigation expenses. 

 

SEND US A MESSAGE

Contact Us

ADDRESS

Kehoe Law Firm, P.C.
2001 Market Street
Suite 2500
Philadelphia, PA 19103

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Tel: 215-792-6676

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[email protected]

CFPB’s New Rule Limits Medical Debt in Credit Reports – What Consumers Need to Know

Mar 6, 2025 | KLF Blog

CFPB’s New Rule Limits Medical Debt in Credit Reports – What Consumers Need to Know //

On January 7, 2025, the Consumer Financial Protection Bureau (“CFPB”) issued a final rule under the Fair Credit Reporting Act (“FCRA”) that significantly restricts how medical debt information is used in credit decisions.

This CFPB Medical Debt Rule (“Prohibition on Creditors and Consumer Reporting Agencies Concerning Medical Information”) aims to prevent medical debt from unfairly impacting credit approvals and credit scores. The rule removes certain exceptions that previously allowed creditors and consumer reporting agencies (“CRAs”) to consider medical debt when determining credit eligibility.

Read the Executive Summary of the FCRA Medical Information Rule here.

Key Changes Under the Medical Debt Rule

The final rule introduces several major changes:

  1. Creditors Are Prohibited from Using Medical Debt in Credit Decisions

The rule removes an existing exception that previously allowed creditors to obtain and use medical information—including medical debt details—when evaluating credit eligibility.

  • Creditors can no longer factor in medical debt when determining whether to approve or deny credit.
  • Medical devices cannot be used as collateral for loans.
  • Lenders cannot request medical debt information from consumers on loan applications.
  • These restrictions apply regardless of how the creditor learns about the medical debt—whether through credit reports, applications, or other means.
  1. Consumer Reporting Agencies Face New Limits on Furnishing Medical Debt Information

Under the rule, CRAs—such as Equifax, Experian, and TransUnion—are restricted in how they report medical debt information to creditors.

  • CRAs can no longer include medical debt information in credit reports unless they have reason to believe the creditor is legally permitted to use it.
  • If state laws prohibit creditors from considering medical debt, CRAs must comply and not furnish that data.
  • This restriction applies to medical bills, repayment terms, and collection actions related to medical debt.
  1. New & Revised Exceptions for Credit Eligibility Considerations

While the rule broadly restricts medical debt use in credit decisions, there are limited exceptions:

  • Consumer-Authorized Transactions: If a consumer explicitly authorizes access to medical expenses in their financial accounts (e.g., checking accounts, credit cards), creditors may use this data for cash-flow underwriting.
  • Medical-Related Income & Benefits: Consumers can still report medical-related benefits as income for loan applications. This includes:
    • Disability benefits
    • Workers’ compensation payments
    • Other medical-related financial benefits
  • Legal Compliance: If a creditor is required by law (such as Regulation Z’s ability-to-repay requirements), they may use medical debt information to comply with those regulations.

Why This Rule Matters for Consumers

This CFPB Medical Debt Rule is designed to:

✅ Protect consumers from being unfairly denied credit due to medical debt.
✅ Ensure credit decisions are based on financial stability rather than unexpected medical expenses.
✅ Reduce the impact of inaccurate medical debt reporting on credit scores.
✅ Prevent lenders from using medical devices as collateral for loans.

Who Is Affected by the CFPB Medical Debt Rule?

The rule applies to:

  • Creditors & lenders – Any institution using consumer credit reports for lending decisions.
  • Consumer reporting agencies – Equifax, Experian, TransUnion, and any CRA furnishing credit reports to creditors.
  • Consumers with medical debt – Individuals struggling with medical bills may now see less impact on their credit reports.

When Does the Rule Take Effect?

The final rule takes effect 60 days after publication in the Federal Register.

Final Thoughts

The CFPB Medical Debt Rule represents a major shift in credit reporting and lending practices. If a creditor or credit bureau violates these new medical debt protections, you may have legal recourse.

Feel free to send us a message or contact Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected], [email protected], for a free, no-obligation evaluation of potential legal claims.

About Kehoe Law Firm, P.C.

Kehoe Law Firm, P.C. is a nationally recognized, plaintiff-side class action law firm dedicated to protecting investors and consumers from fraud and misconduct. Our attorneys have served as Lead or Co-Lead Counsel in major securities cases, recovering over $10 billion for institutional and individual investors. We litigate securities fraud, fiduciary breaches, unfair mergers and acquisitions, and antitrust violations, while also representing whistleblowers and advocating for victims of data breaches, consumer fraud, vehicle and product defects, employment law violations, retirement plan mismanagement, and other corporate and business misconduct. With a results-driven approach, we pursue justice and substantial recoveries for those we represent.

KLF’s class action legal services are provided on a contingency-fee basis, meaning clients are not responsible for any fees or litigation expenses. 

 

SEND US A MESSAGE

Contact Us

ADDRESS

Kehoe Law Firm, P.C.
2001 Market Street
Suite 2500
Philadelphia, PA 19103

PHONE

Tel: 215-792-6676

EMAIL

[email protected]

FTC Joint Labor Task Force Formed to Combat Unfair Labor Practices

Mar 3, 2025 | KLF Blog

FTC Joint Labor Task Force Formed to Protect American Workers //

In a significant move to combat deceptive, unfair, and anticompetitive labor practices, the Federal Trade Commission (FTC) has announced the formation of a Joint Labor Task Force.

This initiative, led by FTC Chairman Andrew N. Ferguson, brings together the Bureau of Competition, Bureau of Consumer Protection, Bureau of Economics, and Office of Policy Planning to investigate, prosecute, and develop policies aimed at protecting American workers.

The directive acknowledges that a fair and competitive labor market is crucial to the country’s economic success. The memorandum highlights that many labor practices harm workers’ ability to earn fair wages, advance their careers, and find better opportunities. The FTC has therefore committed to taking strong enforcement actions against businesses engaging in anticompetitive labor market conduct.

Key Areas of Focus

The Joint Labor Task Force will prioritize the investigation and prosecution of deceptive and unfair labor practices, including:

  1. No-Poach, Non-Solicitation, and No-Hire Agreements

These agreements restrict workers from seeking better employment by preventing businesses from hiring competitors’ employees. Courts have ruled that these agreements can be per se violations of competition laws.

  1. Wage-Fixing Agreements

Employers who collude to fix wages artificially lower employee earnings. This is a severe violation of competition laws and will be a major focus of the task force.

  1. Noncompete Agreements

Many employers use overly restrictive noncompete clauses to prevent workers from switching jobs within the same industry. These agreements limit career mobility and suppress wages, making them a priority for FTC enforcement.

  1. Deceptive Job Advertising and Misleading Business Opportunities

The task force will target misleading job postings that lure job seekers with false promises of high wages or benefits. Additionally, deceptive business opportunities and misleading franchise offerings that trick individuals into investing in fraudulent ventures will be investigated.

  1. Collusion on DEI Metrics

The FTC is also examining unlawful coordination on Diversity, Equity, and Inclusion (DEI) hiring metrics. If companies coordinate in ways that unfairly exclude workers based on race, sex, or sexual orientation, they may be violating competition laws.

  1. Gig Economy Exploitation

The task force will address unfair and deceptive practices targeting gig workers, ensuring that independent contractors receive fair pay and treatment.

  1. Harmful Occupational Licensing Requirements

Certain licensing restrictions create unnecessary barriers to entry for workers in specific industries. The FTC will investigate whether these requirements are being used to limit competition unfairly.

  1. Job and Online Work Scams

The FTC will crack down on fraudulent job placement schemes and online task scams that trick job seekers into paying fees or performing unpaid labor.

  1. Labor Market Monopsonies

In some regions, a single employer or group of employers may dominate the labor market, reducing worker bargaining power. The task force will examine these cases to ensure fair competition.

Why This Matters for American Workers

The FTC memorandum underscores that unfair labor practices have widespread negative effects on the U.S. economy.

Key concerns include:

✔ Lower Wages – Workers earn less when competition among employers is restricted.
✔ Reduced Job Mobility – Unfair agreements lock employees into jobs and prevent career advancement.
✔ Increased Worker Exploitation – Deceptive and anticompetitive practices harm workers across all industries.
✔ Economic Instability – Suppressing wages and employment opportunities harms economic growth and consumer spending.

FTC’s Strategy and Next Steps

To enforce fair labor standards, the FTC has directed its Bureaus to work together under the Joint Labor Task Force.

Key responsibilities include:

  • Prioritizing labor market investigations and prosecutions under consumer protection and competition laws.
  • Coordinating enforcement actions across multiple FTC divisions.
  • Developing research and data-sharing initiatives to identify labor market abuses.
  • Engaging in public outreach to educate workers on their rights and encourage reporting of unfair practices.
  • Identifying legislative and regulatory opportunities to promote fair labor competition.

The task force will meet monthly to assess ongoing investigations and report quarterly to the FTC Chairman.

Conclusion

The launch of the FTC Joint Labor Task Force marks a major step toward protecting American workers from unfair employment practices. By targeting wage-fixing, noncompete agreements, deceptive job advertising, and labor market monopolization, the FTC aims to restore fairness and transparency to the labor market.

To read Chairman Ferguson’s memorandum, click “Directive Regarding Labor Markets Task Force.”

Take Action and Protect Yourself From Antitrust Violations – Know Your Rights 

The antitrust laws prohibit harmful, anticompetitive practices to promote fair competition and better job opportunities.

If you believe your employer has been engaging in unlawful wage-fixing, no-poach agreements or other prohibited conduct, send us a message or contact Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected], [email protected], for a free, no-obligation evaluation of potential legal claims. 

About Kehoe Law Firm, P.C.

Kehoe Law Firm, P.C. is a nationally recognized, plaintiff-side class action law firm dedicated to protecting investors and consumers from fraud and misconduct. Our attorneys have served as Lead or Co-Lead Counsel in major securities cases, recovering over $10 billion for institutional and individual investors. We litigate securities fraud, fiduciary breaches, unfair mergers and acquisitions, and antitrust violations, while also representing whistleblowers and advocating for victims of data breaches, consumer fraud, vehicle defects, employment law violations, retirement plan mismanagement, and other corporate and business misconduct. With a results-driven approach, we pursue justice and substantial recoveries for those we represent.

KLF’s class action legal services are provided on a contingency-fee basis, meaning clients are not responsible for any fees or litigation expenses. 

 

SEND US A MESSAGE

Contact Us

ADDRESS

Kehoe Law Firm, P.C.
2001 Market Street
Suite 2500
Philadelphia, PA 19103

PHONE

Tel: 215-792-6676

EMAIL

[email protected]

SEC Whistleblower Program – Reporting Securities Fraud and Financial Rewards

Mar 3, 2025 | KLF Blog

SEC Whistleblower Program Explained: How It Works & Benefits //

The SEC Whistleblower Program (“SEC Whistleblower Program”) was established by Congress to incentivize whistleblowers to report specific, timely and credible information about possible federal securities laws violations.

Whistleblowers who provide original, high-quality information that leads to a successful enforcement action may be eligible for financial rewards ranging from 10% to 30% of the money collected when the monetary sanctions exceed $1 million.

In May 2023, the U.S. Securities and Exchange Commission (“SEC”) announced the largest-ever award, nearly $279 million, to a whistleblower whose information and assistance led to the successful enforcement of SEC and related actions. This is the highest award in the SEC’s whistleblower program’s history, more than doubling the $114 million whistleblower award the SEC issued in October 2020.

In FY 2024, the SEC awarded over $255 million to 47 whistleblowers, marking the third-highest annual total in the program’s history.

According to the SEC Office of the Whistleblower Annual Report to Congress for FY 2024, more than $2.2 billion has been awarded by the SEC to 444 individual whistleblowers since the SEC Whistleblower Program’s inception in 2011.

Whistleblower Confidentiality

Confidentiality is a cornerstone of the SEC Whistleblower Program. Under the Dodd-Frank Act, the SEC is prohibited from disclosing any information that could reasonably be expected to reveal a whistleblower’s identity, except under limited circumstances.

To protect whistleblowers, the SEC redacts identifying details from public award orders, including names, enforcement action details, and award percentages.

Who Can Be a Whistleblower?

Anyone with credible, original information about violations of federal securities laws can be a whistleblower. This includes employees, investors, industry insiders, and others who witness misconduct.

The SEC allows anonymous reporting if the whistleblower is represented by an attorney.

Even individuals involved in the misconduct may be eligible for an award, though their participation could impact the reward amount.

Whistleblowers can be either insiders (such as current or former employees of the violating entity) or outsiders (such as investors, competitors, or market analysts). In FY 2024, 38% of whistleblowers who received awards were outsiders, while 62% were insiders.

What Information Can I Submit to the SEC?

The SEC investigates possible violations of federal securities laws. The more specific, credible, and timely a whistleblower tip, the more likely it is that the tip will be forwarded to investigative staff.

High-quality tips include:

  • Identifying individuals involved in the scheme
  • Providing examples of fraudulent transactions
  • Submitting non-public materials evidencing fraud

The SEC does not have jurisdiction over matters outside federal securities laws but may refer cases to other regulatory agencies when appropriate.

Examples of misconduct the SEC investigates include:

  • Ponzi schemes, pyramid schemes, or high-yield investment programs
  • Theft or misappropriation of funds or securities
  • Manipulation of a security’s price or volume
  • Insider trading
  • Fraudulent or unregistered securities offerings
  • False or misleading statements about a company (including SEC reports or financial statements)
  • Abusive naked short selling
  • Bribery of, or improper payments to, foreign officials
  • Fraudulent conduct associated with municipal securities transactions or public pension plans
  • Initial Coin Offerings and cryptocurrency fraud

Independent Knowledge and Independent Analysis

To be eligible for an award, whistleblowers must provide “original information” derived from either:

  • Independent knowledge – Firsthand, non-public information obtained through personal experiences, observations, or communications.
  • Independent analysis – Examining publicly-available data in a way that uncovers previously unknown violations.

In FY 2024, the SEC granted four awards based on independent analysis and 37 awards based on independent knowledge.

Protections for Whistleblowers

The SEC Whistleblower Program provides strong protections against employer retaliation.

Employers cannot fire, demote, suspend, or harass employees for reporting violations. Whistleblowers who experience retaliation may have legal recourse, including job reinstatement and compensation for damages.

How to Report Securities Fraud to the SEC

To report fraud under the SEC Whistleblower Program:

  1. Gather Evidence – Collect documents, emails, or records supporting your claim. The SEC values high-quality, original information.
  2. Submit a Tip – Use the SEC’s Tips, Complaints and Referrals Portal or Form TCR (Tip, Complaint, or Referral). A properly submitted Form TCR is required for a whistleblower award.
  3. Work with an Attorney – An experienced whistleblower attorney can guide you and protect your rights. Whistleblowers wishing to remain anonymous must be represented by an attorney.
  4. Stay Updated – The SEC may contact you for additional information or updates on your case. Continued cooperation may maximize award chances.

Determining Whistleblower Awards

The SEC determines award percentages based on several factors:

Factors That May Increase an Award:

  • Significance of Information – More valuable information leads to higher awards.
  • Assistance Provided – Helping SEC staff decipher transactions or provide key evidence can increase awards.
  • Law Enforcement Interest – Reports of ongoing violations harming investors may receive priority.
  • Internal Compliance Participation – While not required, internal reporting can increase award percentages.

Factors That May Decrease an Award:

  • Unreasonable Reporting Delay – Waiting too long to report a violation may reduce the award.
  • Culpability – Whistleblowers involved in misconduct may receive reduced payouts.
  • Interference with Internal Reporting Systems – Undermining internal compliance may lower an award.

Maximum Whistleblower Award Presumption

Under the 2020 Whistleblower Rule Amendments, whistleblowers are presumed eligible for the maximum 30% award if:

  • The total award does not exceed $5 million.
  • The claimant has no negative factors (e.g., culpability or delay).
  • The claim does not involve whistleblowers engaged in misconduct.

In FY 2024, the SEC applied this presumption in 90% of cases where the maximum award was $5 million or less.

Why Report Securities Violations?

By participating in the SEC Whistleblower Program, individuals help combat fraud, hold violators accountable, and protect investors. With over $2.2 billion awarded to 444 whistleblowers since 2011, the program plays a critical role in exposing wrongdoing.

If you have information about securities fraud, consider consulting a legal professional before submitting a tip.

Learn more about the SEC Whistleblower Program by visiting the SEC’s official Whistleblower FAQ page.

Do You Have Questions or Concerns About Whistleblower Reporting of Securities Fraud to the SEC?

Making the decision to come forward as a whistleblower and report securities fraud to the SEC can be challenging. At Kehoe Law Firm, P.C., our legal team understands the complexities involved and has extensive experience investigating fraud, prosecuting wrongdoing, and working with individuals who bravely expose securities violations.

If you have questions about voluntarily providing information to the SEC as a whistleblower—whether regarding eligibility for a whistleblower award, the reporting process, or the required submission format—please contact Kehoe Law Firm, P.C.

To speak directly with an attorney and receive a free, no-obligation legal consultation, please contact:

Michael Yarnoff, Esq. – [email protected], [email protected] | (215) 792-6676, Ext. 804, or
John Kehoe, Esq. – [email protected], [email protected] | (215) 792-6676, Ext. 801.

Your courage in whistleblower reporting of securities fraud helps protect investors and uphold market integrity. Kehoe Law Firm is here to guide you every step of the way.

About Kehoe Law Firm, P.C.

Kehoe Law Firm, P.C. is a nationally recognized, plaintiff-side class action law firm dedicated to protecting investors and consumers from fraud and misconduct. Our attorneys have served as Lead or Co-Lead Counsel in major securities cases, recovering over $10 billion for institutional and individual investors. We litigate securities fraud, fiduciary breaches, unfair mergers and acquisitions, and antitrust violations, while also representing whistleblowers and advocating for victims of data breaches, consumer fraud, vehicle defects, employment law violations, retirement plan mismanagement, and other corporate and business misconduct. With a results-driven approach, we pursue justice and substantial recoveries for those we represent.

KLF’s class action legal services are provided on a contingency-fee basis, meaning clients are not responsible for any fees or litigation expenses. 

    SEND US A MESSAGE

    Contact Us

    ADDRESS

    Kehoe Law Firm, P.C.
    2001 Market Street
    Suite 2500
    Philadelphia, PA 19103

    PHONE

    Tel: 215-792-6676

    EMAIL

    [email protected]

    Supreme Court Backs Whistleblower in E-Rate Fraud Case

    Mar 1, 2025 | KLF Blog

    In an E-Rate fraud case brought under the False Claims Act (“FCA”) against Wisconsin Bell, the U.S. Supreme Court (“USSC”) recently ruled in favor of Todd Heath (“Heath”), in a significant decision which underscores the role of whistleblowers in exposing E-Rate fraud and enforcing accountability in federally managed funds.

    What is the E-Rate Program?

    The E-Rate (Education-Rate) program, established by the 1996 Telecommunications Act, helps schools and libraries afford internet and telecom services by drawing from the Universal Service Fund (“Fund”).

    Telecom carriers contribute to the Fund, which is administered by the Universal Service Administrative Company, a nonprofit designated by the Federal Communications Commission (“FCC”) to oversee collections and distributions in accordance with FCC regulations.

    A key regulation, the “lowest corresponding price” rule, ensures carriers do not charge schools and libraries more than comparable non-residential customers.

    Whistleblower Lawsuit Against Wisconsin Bell

    Heath, a telecommunications auditor, filed a lawsuit against Wisconsin Bell under the FCA, alleging that the company overcharged schools in violation of this rule and then submitted inflated reimbursement requests to the Fund, thereby defrauding the program.

    The FCA imposes civil liability on any person who “knowingly presents, or causes to be presented, a false or fraudulent claim” as statutorily defined. 31 U.S.C. §3729(a)(1)(A).

    Wisconsin Bell’s Defense & Lower Court Rulings

    Wisconsin Bell argued that these reimbursement requests did not qualify as FCA “claims” because the money originated from private carrier contributions rather than the government. However, courts, including the Seventh Circuit, rejected this argument, noting that the government played a direct role in regulating the Fund’s collection and distribution.

    Additionally, the government contributed more than $100 million directly from the U.S. Treasury, sourced from enforcement penalties and related actions.

    Because these government funds were deposited into and disbursed from the Fund, the courts determined that E-Rate reimbursements qualified as FCA “claims,” allowing Heath’s lawsuit to proceed.

    To read the USSC opinion, Wisconsin Bell, Inc. v. United States ex rel., click E-Rate fraud. 

    Impact on Whistleblowers & Fraud Enforcement

    The USSC’s decision reinforces the False Claims Act’s role in protecting federal programs and highlights the critical role of whistleblowers in identifying and exposing fraud against the government. 

    Whistleblowers: Know Your Rights 

    Kehoe Law Firm is dedicated to protecting whistleblower rights, guiding them through the legal process, and pursuing potential financial rewards for reporting fraud.

    For a free, no-obligation evaluation of whistleblower claims, send us a message or contact Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected], [email protected]. 

    KLF’s class action legal services are provided on a contingency-fee basis, meaning clients are not responsible for any fees or litigation expenses. 

    About Kehoe Law Firm, P.C.

    Kehoe Law Firm, P.C. is a plaintiff-side class action firm, fiercely committed to safeguarding investors and consumers from corporate fraud and misconduct. Nationally recognized, our attorneys have taken the reins as Lead or Co-Lead Counsel in high-profile cases, securing over $10 billion in recoveries for institutional and individual investors and consumers. Through relentless class action litigation, we tackle securities fraud, fiduciary breaches, unfair mergers and acquisitions, and antitrust violations head-on. Beyond that, we champion whistleblowers and fight against data breaches, consumer scams, employment law abuses, retirement plan mismanagement, and deceptive business practices. With a no-nonsense, results-focused approach, we chase down meaningful outcomes—delivering justice and substantial recoveries for those we represent.

      SEND US A MESSAGE

      Contact Us

      ADDRESS

      Kehoe Law Firm, P.C.
      2001 Market Street
      Suite 2500
      Philadelphia, PA 19103

      PHONE

      Tel: 215-792-6676

      EMAIL

      [email protected]