Construction Company Sued for Whistleblower Retaliation

OSHA News Releases

Filed April 6th, 2026

Detected April 7th, 2026

Summary

The Department of Labor filed suit against Stone Hill Excavation LLC and its successor Split Rock Sand & Gravel in U.S. District Court for the District of South Dakota for allegedly violating whistleblower protection provisions under the Occupational Safety and Health Act. OSHA determined the company wrongfully terminated an employee two days after reporting a severe work-related injury involving second- and third-degree burns. The suit seeks reinstatement, back wages, and $100,000 in punitive damages.

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What changed

The DOL's lawsuit alleges Stone Hill Excavation LLC violated the whistleblower provisions of the Occupational Safety and Health Act by terminating an employee two days after the worker reported a severe injury sustained from scalding water in a pressurized pipe. The complaint, filed in the District of South Dakota, names both the company and its successor Split Rock Sand & Gravel as defendants and seeks injunctive relief including employee reinstatement, back wages, and $100,000 in punitive damages.

Construction companies and employers should review their policies to ensure no retaliation occurs against employees who report work-related injuries or safety concerns. Violations of whistleblower protection statutes carry significant legal exposure including compensatory and punitive damages. Employers must document all employment decisions carefully and ensure compliance with OSHA's 25 whistleblower statutes covering workplace safety and other areas.

What to do next

Review whistleblower protection policies to ensure no retaliation against employees who report work-related injuries
Document all employment decisions and ensure terminations cannot be perceived as retaliatory
Train supervisors and managers on prohibited retaliation under OSHA whistleblower statutes

Penalties

$100,000 in punitive damages sought, plus back wages and reinstatement

Source document (simplified)

OSHA News Release - Denver Region

U.S. Department of Labor
SIOUX FALLS, SD – The U.S. Department of Labor has filed suit against a Valley Springs construction contractor for the wrongful termination of an employee who reported a severe work-related injury.

April 6, 2026

US Department of Labor files suit alleging South Dakota construction company wrongfully fired whistleblower for reporting work-related injury

SIOUX FALLS, SD – The U.S. Department of Labor has filed suit against a Valley Springs construction contractor for the wrongful termination of an employee who reported a severe work-related injury.

An investigation by the department's Occupational Safety and Health Administration found the employee received second- and third-degree burns from scalding water in a pressurized pipe. OSHA determined Stone Hill Excavation LLC, and its successor Split Rock Sand & Gravel, violated the whistleblower provisions of the Occupational Safety and Health Act by firing the worker two days after the injury was reported.

The department's suit, filed in the U.S. District Court for the District of South Dakota, asks the court to hold the company and its successor liable for illegal retaliation. It also calls for the reinstatement of the employee and payment of back wages and damages, including $100,000 in punitive damages.

OSHA’s Whistleblower Protection Program enforces the whistleblower provisions of 25 whistleblower statutes protecting employees from retaliation for reporting violations of workplace airline, anti-money laundering, commercial motor carrier, consumer product, criminal antitrust, environmental, financial reform, food safety, health insurance reform, maritime, motor vehicle safety, nuclear, pipeline, public transportation agency, railroad, safety and health, securities and tax laws.

For more information on whistleblower protections, visit OSHA's Whistleblower Protection Programs webpage.

**Editor's note:* The U.S. Department of Labor does not release the names of employees involved in whistleblower complaints.*