The Georgia Court of Appeals has unanimously ruled that two former human resource directors may proceed with their lawsuit, filed by Barrett & Farahany Partner Matthew Billips and John E. Floyd of Bondurant Mixson & Elmore LLP, that alleged they were terminated for reporting suspected fraudulent work authorization practices.
The case, Wommack et al. v. G.S. Construction Inc. et al., filed under Georgia’s Racketeer Influenced and Corrupt Organizations (RICO) Act, asserts that the plaintiffs were fired in retaliation for raising concerns about falsified employment eligibility documents and other alleged fraudulent activities. According to the complaint, both parties discovered irregularities involving fake Social Security and permanent resident cards, as well as other misconduct they believed violated state and federal law.
One of the plaintiffs was hired as the company’s first HR director in 2023 and, after notifying the company owner of suspected identity fraud among employees, was terminated one week later. The second plaintiff, her successor, allegedly uncovered similar issues and was fired after warning that they would report them to federal authorities. The pair also alleges the company facilitated fraudulent drug screening results in a separate matter.
The Court of Appeals found that the plaintiffs plausibly alleged acts that could constitute criminal threats or coercion under OCGA §16-10-32(b) and OCGA §16-10-93(b)—both recognized as predicate offenses under Georgia’s RICO statute. The panel held that the plaintiffs’ allegations, if proven, could demonstrate that the defendants’ conduct was intended to deter them from reporting criminal activity or testifying, thereby constituting racketeering activity.
Learn more about the case here.