South Dakota Contractor Sued for Firing Injury-Reporting Whistleblower
Summary
The U.S. 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. OSHA found the companies violated whistleblower provisions of the Occupational Safety and Health Act by firing an employee two days after the worker reported second- and third-degree burns from a pressurized pipe incident. The department seeks reinstatement, back wages, and $100,000 in punitive damages.
What changed
OSHA's investigation determined that Stone Hill Excavation LLC and its successor Split Rock Sand & Gravel wrongfully terminated an employee who reported severe work-related injuries sustained from scalding water in a pressurized pipe. The termination occurred just two days after the injury was reported, establishing a prima facie case of retaliation under the OSH Act's whistleblower provisions. The lawsuit, filed in the District of South Dakota, seeks full remediation including employee reinstatement, back wages, and $100,000 in punitive damages.
Employers, particularly in the construction industry, should immediately audit their injury reporting and anti-retaliation practices. Supervisors must understand that adverse employment actions following injury reports create significant legal exposure under 25 federal whistleblower statutes enforced by OSHA. Companies should document legitimate, non-retaliatory reasons for any employment decisions made proximate to injury reports and ensure consistent application of safety policies.
What to do next
- Audit injury reporting procedures to ensure no adverse employment actions occur within 30 days of a reported injury
- Train supervisors and HR personnel on whistleblower anti-retaliation obligations under the OSH Act
- Document legitimate, non-retaliatory business reasons for any terminations or disciplinary actions taken after employee injury reports
Penalties
$100,000 in punitive damages sought, plus back wages and reinstatement
Source document (simplified)
News Release
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.*
Agency Occupational Safety & Health Administration Date April 6, 2026 Release Number 26-567-DEN Media Contact: OPA West Media Email opa-west-media@dol.gov Share This
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