How Qui Tam Rewards Work
When a whistleblower's information helps the government recover funds, the law entitles that person to a share — often a substantial one.
How the reward percentage is calculated
Under the False Claims Act, a relator is generally entitled to between 15% and 30% of whatever the government recovers. The exact percentage depends largely on whether the government intervenes in the case and how much the relator's information and cooperation contributed to the result. Because recoveries in large healthcare and procurement cases can reach into the millions or more, even a modest percentage can be significant.
Government intervention vs. relator-only cases
When the government intervenes and takes the lead, the relator's share is typically in the range of 15% to 25%. When the government declines and the relator pursues the case successfully on their own, the share rises — generally 25% to 30% — reflecting the greater risk and effort the relator assumed. Both paths can result in meaningful awards.
Factors that increase or decrease your share
Courts and the government weigh several factors in setting the exact percentage: how significant and timely your information was, how much you helped advance the case, and whether you were involved in the underlying wrongdoing. A relator who planned or initiated the fraud may receive a reduced share, and someone convicted of related criminal conduct may be barred from any award.
Timeline from filing to recovery
Qui tam cases are not quick. After filing under seal, the government's investigation can take a year or more, and litigation — if it proceeds — can extend the timeline to several years. Payment of a relator's share generally comes only after the case resolves and the government actually collects the funds. Patience is part of the process.
Taxes on qui tam awards
Whistleblower awards are generally treated as taxable income. The tax treatment of an award, and of any attorneys' fees, can be complex, so relators often consult a tax professional once an award is in sight. This page is informational and is not tax or legal advice.