Which law protects employees who report fraudulent activity against their employer?

The law that specifically protects employees who report fraudulent activity against their employer is the Whistleblower Protection Act. This act was designed to shield individuals from retaliation by their employers when they disclose information that they reasonably believe shows violations of laws, rules, or regulations, including those involving fraud.

The Whistleblower Protection Act encourages a transparent work environment and aims to protect employees who step forward in exposing wrongdoing, which includes financial fraud. It establishes legal protections for these individuals, ensuring they cannot be terminated, demoted, or otherwise discriminated against for their whistleblowing activities.

While the False Claims Act does address fraud against the government and allows individuals to file a lawsuit on behalf of the government, it does not specifically focus on protecting employees who report fraudulent activities within their own employers. The Sarbanes-Oxley Act is primarily concerned with corporate governance and financial practices, including protections for whistleblowers within publicly traded companies, but it also does not cover the wider range of fraudulent activities addressed by the Whistleblower Protection Act. The Employment Rights Act primarily deals with workers' rights and unfair dismissal, which does not specifically focus on the protection of whistleblowers in cases of fraud.

Thus, the Whistleblower Protection Act is the correct answer as it