Texas Companies Fined for Firing Whistleblowers Over Asbestos Concerns

The U.S. Department of Labor has ordered two Houston-based construction companies and their owners to reinstate and compensate two workers who were fired for raising asbestos concerns during repair of a hotel after Hurricane Beryl.

The department’s Occupational Safety and Health Administration investigated a whistleblower complaint by the terminated employees of Rise Construction LLC, owned by Jivar Foty, and Niko Group LLC, owned by Jessica Foty. 

The two employees alleged they were fired after raising concerns to the owners about lack of training, asbestos certification, and personal protective equipment, along with concerns of illegal dumping of asbestos. OSHA found that the terminations were in retaliation for making protected complaints under the Clean Air Act, the Solid Waste Disposal Act, and Toxic Substances Control Act. It ordered reinstatement of the two employees and payment of more than US$200,000 in back wages and interest, as well as compensatory and punitive damages. 

OSHA enforces 25 whistleblower statutes that protect employees from retaliation for reporting potential violations involving safety, health, environmental protection, and other public interest concerns.