S. 874: Expanding Whistleblower Protections for Contractors Act of 2025

This bill, officially titled the "Expanding Whistleblower Protections for Contractors Act of 2025," aims to enhance protections for whistleblowers, particularly focusing on contractors involved with the federal government, such as those working with the Department of Defense and NASA. The proposed changes include:

Key Provisions

• Refusal to Obey Illegal Orders: The bill stipulates that protected individuals (which include contractors, subcontractors, and certain employees) cannot be punished for refusing to follow orders that would compel them to violate laws, rules, or regulations related to any federal contracts.
• Disclosure Protections: It reinforces protections for individuals who disclose information they reasonably believe indicates serious misconduct. This includes reporting:
  • Gross mismanagement of federal contracts or grants.
  • Gross waste of federal funds.
  • Abuse of authority regarding federal contracts.
  • Violations of laws, rules, or regulations related to these contracts.
  • Significant dangers to public health or safety.
• Prohibiting Retaliation: The bill clarifies that retaliation against whistleblowers is strictly prohibited. Those who experience reprisal can seek redress, and the bill mandates appropriate disciplinary action against officials who request retaliatory actions.
• Definition of "Protected Individual": The bill specifies that "protected individuals" include contractors and subcontractors of the Department of Defense or NASA, as well as employees of such entities and those performing personal services for the federal government.
• Non-Waivable Rights: The rights of these individuals cannot be waived through any agreements, such as predispute arbitration agreements. This means that they retain the right to seek legal redress in cases of retaliation without being forced into arbitration.

Goals of the Legislation

The primary goal of the bill is to create a safer environment for whistleblowers within federal contracting, encouraging transparency and accountability in government contracts. By expanding protections, the bill seeks to empower individuals to report wrongdoing without fear of losing their jobs or facing other forms of retaliation.

Relevant Companies

• LMT: Lockheed Martin Corporation, a major defense contractor, may be impacted as it employs numerous subcontractors and could face increased scrutiny and legal challenges related to whistleblower claims.
• RTX: Raytheon Technologies Corporation, another large defense contractor, is likely to influence and be influenced by the provisions of this bill given its contracts with the Department of Defense.
• NOC: Northrop Grumman Corporation may also experience significant changes in its contractor relationships and internal policies regarding whistleblower protections as a result of this legislation.