FAR 3.907-2—Policy.
Plain-English Summary
FAR 3.907-2 states the core anti-retaliation policy for disclosures of covered information by employees of non-Federal employers. It prohibits an employer from discharging, demoting, or otherwise discriminating against an employee because the employee reported covered information to specified recipients, including the Board, an Inspector General, the Comptroller General, a Member of Congress, State or Federal regulatory or law enforcement agencies, a supervisor or other internal official with authority to investigate or stop misconduct, a court or grand jury, or the head of a Federal agency. In practical terms, this section is designed to protect whistleblowers and encourage reporting of fraud, waste, abuse, and other misconduct connected to federal contracting or federal programs. It matters because contractors and subcontractors can face legal exposure if they take adverse action against an employee after a protected disclosure, even when the disclosure is made outside the company. For contracting officers and agencies, the policy reinforces the government’s interest in preserving open reporting channels and preventing retaliation that could conceal misconduct. For contractors, it means personnel actions must be carefully separated from any employee complaint or disclosure activity.
Key Rules
No retaliation for disclosure
A non-Federal employer may not discharge, demote, or otherwise discriminate against an employee as reprisal for making a covered disclosure. The rule is broad and reaches any adverse treatment tied to the employee’s protected report.
Protected disclosure recipients
The disclosure is protected when made to one of the listed entities: the Board, an Inspector General, the Comptroller General, a Member of Congress, a State or Federal regulatory or law enforcement agency, a qualifying supervisor or internal investigator, a court or grand jury, or the head of a Federal agency.
Internal reporting is covered
The policy protects disclosures to a person with supervisory authority or to another person working for the employer who has authority to investigate, discover, or terminate misconduct. Employees do not have to go outside the company to receive protection.
Adverse actions are prohibited
The prohibition includes discharge and demotion, but also any other form of discrimination used as retaliation. This can include changes in pay, duties, schedule, promotion opportunities, or other materially adverse treatment.
Applies to non-Federal employers
The section is directed at employers that are not Federal agencies, which in practice includes many contractors and subcontractors. The policy is intended to prevent retaliation in the private-sector workforce supporting federal work.
Responsibilities
Non-Federal Employer
Must not retaliate against employees for making covered disclosures. The employer must ensure personnel decisions are based on legitimate, documented reasons and not on the fact that an employee reported misconduct to any protected recipient.
Supervisors and Managers
Must not take or recommend adverse action because of a protected disclosure. They should route complaints appropriately, avoid threats or pressure, and preserve documentation showing the basis for any employment action.
Employees
May disclose covered information to the listed entities without fear of reprisal under this policy. Employees should understand the protected channels and keep records of what was disclosed, when, and to whom.
Federal Agencies and Oversight Officials
Receive and review disclosures through the channels identified in the rule, and help ensure that retaliation concerns are addressed through the appropriate oversight or enforcement mechanisms.
Practical Implications
Contractors should train managers and HR staff to recognize protected disclosures and avoid mixing whistleblower complaints with performance or discipline decisions.
A common pitfall is treating an employee’s report to an IG, Congress, or a regulator as disloyalty; that can create retaliation risk if any adverse action follows.
Internal complaints can be protected too, so companies should not assume protection applies only when an employee goes outside the organization.
Documented, consistent reasons for discipline or termination are critical, especially when the employee has recently made a report to one of the protected recipients.
This policy supports a speak-up culture, but it also means contractors need clear anti-retaliation procedures, escalation paths, and careful review before taking adverse action against a reporting employee.
Official Regulatory Text
Non-Federal employers are prohibited from discharging, demoting, or otherwise discriminating against an employee as a reprisal for disclosing covered information to any of the following entities or their representatives: (1) The Board. (2) An Inspector General. (3) The Comptroller General. (4) A member of Congress. (5) A State or Federal regulatory or law enforcement agency. (6) A person with supervisory authority over the employee or such other person working for the employer who has the authority to investigate, discover, or terminate misconduct. (7) A court or grand jury. (8) The head of a Federal agency.