Labor Department Orders Texas Companies to Pay $200K+ for Asbestos Whistleblower Retaliation

DOL News Releases

Filed February 12th, 2026

Detected February 13th, 2026

Summary

The U.S. Department of Labor's OSHA has ordered two Texas construction companies to pay over $200,000 in back wages and damages to two workers fired for raising asbestos concerns. The companies must also reinstate the employees.

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What changed

The U.S. Department of Labor, through OSHA, has ordered Rise Construction LLC and Niko Group LLC, both based in Houston, Texas, to pay more than $200,000 in back wages, interest, and damages to two employees. These employees were terminated after raising concerns about asbestos safety protocols, including lack of training, certification, PPE, and illegal dumping. OSHA found the terminations to be retaliatory, violating whistleblower protections under the Clean Air Act, Solid Waste Disposal Act, and Toxic Substances Control Act.

This enforcement action requires the companies to reinstate the affected employees and pay the ordered compensation. Companies operating in industries where hazardous materials like asbestos are present should review their internal policies and procedures to ensure compliance with whistleblower protections and environmental regulations. Failure to comply with such orders can result in significant financial penalties and legal repercussions.

What to do next

Review internal policies for whistleblower protections related to safety and environmental concerns.
Ensure compliance with asbestos handling, training, and disposal regulations.
Verify that employees raising legitimate concerns are not subject to retaliation.

Penalties

More than $200,000 in back wages, interest, compensatory damages, and punitive damages.

Source document (simplified)

News Release

US Labor Department orders Texas companies to pay more than $200K in back wages, damages to workers fired after raising asbestos concerns

HOUSTON – The U.S. Department of Labor has ordered two Houston-based construction companies and their owners to reinstate and compensate two workers who were fired for raising asbestos concerns during repair of a hotel after Hurricane Beryl.

The department’s Occupational Safety and Health Administration investigated a whistleblower complaint by the terminated employees of Rise Construction LLC, owned by Jivar Foty, and Niko Group LLC, owned by Jessica Foty.

The two employees alleged they were fired after raising concerns to the owners about lack of training, asbestos certification, personal protective equipment, and illegal dumping of asbestos. OSHA found that the terminations were in retaliation for making protected complaints under the Clean Air Act, the Solid Waste Disposal Act, and Toxic Substances Control Act, and ordered reinstatement of the two employees and payment of more than $200,000 in back wages and interest, as well as compensatory and punitive damages.

OSHA enforces 25 whistleblower statutes that protect employees from retaliation for reporting potential violations involving safety, health, environmental protection, and other public interest concerns.

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