June 20, 2024

Department of Labor finds American Home Protect, Porch Group fired employee who reported deceptive practices to leadership

Companies must reinstate employee, pay $185K in wages, damages for retaliation

PLANO, TX – The U.S. Department of Labor has ordered American Home Protect LLC in Plano and its parent company, Porch Group Inc. in Seattle, to reinstate and pay back wages and compensatory damages to an employee who was fired in June 2023 after informing upper management about deceptive business practices.

A whistleblower investigation by the department's Occupational Safety and Health Administration found the employee alerted American Home Protect and Porch Group management that customer refunds, after cancelling services, were not issued in a timely manner to hundreds of customers because the companies required them to complete unnecessary steps in the cancellation process. The employee suffered retaliation for reporting what they reasonably believed to be a violation of the law.

"The actions of American Home Protect and its parent company Porch Group are wholly unacceptable," said OSHA Regional Administrator Eric S. Harbin in Dallas. "Federal law protects the right of an employee to report unfair business practices and financial deception without fear of any kind of retaliation. Our investigation found the employee suffered retaliation after responsibly alerting the company that its actions violated the law."

In addition to ordering the employee's reinstatement, OSHA has instructed the employer to pay $109,661 in back wages and $76,289 in compensatory damages to the employee. The agency determined the companies violated provisions of the Sarbanes-Oxley Act and the Consumer Financial Protection Act that forbid employer retaliation against a worker who raises concerns about inappropriate financial activities.

Founded in 2016, American Home Protect LLC provides home warranties that cover repairs on appliances and home systems. The company was acquired in 2021 by the Porch Group Inc., a publicly traded software platform for the home, which provides software and services to more than 25,000 home services companies such as home inspectors, mortgage companies and loan officers, title companies, moving companies, real estate agencies, utility companies and warranty companies.

OSHA's Whistleblower Protection Program enforces the whistleblower provisions of more than 20 whistleblower statutes which protect employees from retaliation for reporting workplace safety and health violations. For more information on whistleblower protections, visit OSHA's Whistleblower Protection Program webpage.

Learn more about OSHA.

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

Media Contacts:

Juan J. Rodríguez, 972-850-4709, rodriguez.juan@dol.gov
Chauntra Rideaux, 972-850-4710, rideaux.chauntra.d@dol.gov

Release Number: 24-1115-DAL