[WA] Should an employee resign or wait to be fired after being disciplined for reporting suspected misuse of federal funds?

I understand that dealing with employment issues can be stressful. Can you please describe the specific employment situation or issue you are facing?

Have you already taken any steps to address this issue, such as speaking with your employer or HR?

Is there anything else the lawyer should know before I connect you? Rest assured they'll be able to help with your FMLA questions.

Hello, and thank you for reaching out! I'm Jon, a licensed attorney with over 14 years of experience, here to help. I understand legal matters can feel overwhelming, but you're in good hands. My goal is to explain things clearly and guide you toward the best possible solution for your situation. Just a quick note: our conversation is for general legal information only and does not create an attorney-client relationship.

First, which state is this occurring in?

Thanks for sharing that you're in Washington state. Could you tell me how many employees work at your company? This helps in understanding the scale of your employer and the applicability of certain laws.

Got it, thanks for that. Could you share a bit more about the timeline of events? Specifically, when did you start your FMLA leave, and when are you expected to return to work?

Our conversation is for general legal information and guidance, and it doesn't create an attorney-client relationship.

Understood! I believe I have all the information I need. Is there anything else you'd like to add before I start working on your answer? If not, I'll get started right away.

Got it! I just need a few minutes to put together a complete response for you. It shouldn't take longer than about 4-5 minutes, and I want to make sure it's clear and comprehensive. Thanks so much for waiting, I really appreciate your patience.

This is an incredibly difficult situation, and it's understandable that you feel overwhelmed and concerned about your future. Discovering what you believe is a misuse of federal funds and then facing disciplinary action while you're on FMLA leave would be stressful for anyone. With your union contract, FMLA, Washington Paid Family and Medical Leave (PFML), and federal whistleblower protections all potentially involved, the timing of your next steps is important.

If you resign because your employer has made your working conditions so difficult that you feel you have no reasonable choice but to leave, that may qualify as a constructive discharge. In some cases, the law treats a constructive discharge the same as a termination, but you must be able to show that a reasonable person in your position would have felt forced to resign.

One important consideration is that under the federal FMLA, an employer may seek reimbursement of the health insurance premiums it paid during your leave if you voluntarily resign and do not return to work for at least 30 days, a rule set out in 29 CFR § 825.213. However, if you can show that retaliation or other unlawful conduct prevented you from returning, that exception may apply, although proving it can require legal action.

Another option is to let your employer continue with its disciplinary process. While that may be difficult, it can sometimes strengthen a retaliation claim. If you have a long history of good performance, reported suspected misuse of HUD funds, and were then quickly transferred, disciplined, or placed on a performance improvement plan, that sequence of events may help support a claim that you were retaliated against for engaging in protected activity.

If you are terminated, you may also have an easier path to unemployment benefits in Washington unless the employer can prove misconduct. If you resign instead, you generally must show the Washington Employment Security Department that you left for legally recognized good cause, the standard laid out in RCW 50.20.050.

A third possibility is negotiating a separation agreement. If your union grievance has merit and your whistleblower claim is strong, an employment attorney or union representative may be able to negotiate severance pay, a neutral reference, and an agreement that the employer will not contest your unemployment benefits in exchange for resolving any legal claims. This can allow you to leave on more favorable terms than either resigning outright or waiting to be fired.

For now, while your leave continues through August 21, avoid making a final decision if possible. Preserve copies of emails, transfer notices, disciplinary records, and any other relevant documents you are legally entitled to keep before you lose access to your work systems. Keep your union representative informed of the full timeline, especially when you reported the suspected HUD funding issues and when the disciplinary actions began.

If your concerns involve federal HUD funds, you may also want to discuss filing a formal whistleblower complaint with the HUD Office of Inspector General. Depending on the facts, the protections in 41 U.S.C. § 4712 may apply. Before deciding whether to resign, return to work, or pursue another option, it would be wise to consult a Washington employment attorney. They can review your collective bargaining agreement, determine whether union grievance procedures must be completed first, evaluate your retaliation and whistleblower claims, and help you choose the approach that best protects both your legal rights and your financial interests.

To get legal advice or representation, you'll need to reach out to a licensed lawyer in your area. Finding a highly rated and trustworthy lawyer in your area is straightforward. You can visit Avvo.com, a well-regarded lawyer review site, to search for legal professionals who can assist you with your case, or the WA Bar can refer you to someone: https://www.wsba.org/for-the-public/find-legal-help. You're welcome! Did that help clear things up for you? If you have any other questions or need more help, please don't hesitate to ask!

I do hope the information I provided was helpful and addressed your question. If there's anything else you need, please don't hesitate to reach out, I'm always happy to assist.