Government workers who report possible misconduct at their agencies need stronger protection against reprisals on the job, a spokesman for state employees told legislators who will be studying the issue.

"For an employee, if he or she thinks something illegal or inappropriate is going on in their agency, why in God's name would they even raise an eyebrow? There is no upside there," Stuart Savelkoul, director of the North Dakota Public Employees Association, told the Legislature's interim Industry, Business and Labor Committee on Thursday.

North Dakota law prohibits retaliation against public employees who report possible violations of local, state or federal laws or misuse of public money or property. It says whistleblowers may not be fired, transferred or demoted for making a report.

However, the law's critics say problems at North Dakota's Workforce Safety and Insurance agency showed the law was toothless.

Four employees were dismissed after they requested protection under the law. WSI's former director, Sandy Blunt, was later convicted of a felony charge of misspending more than $10,000 in public funds. Blunt is appealing the December 2008 verdict.

Last spring, North Dakota legislators rejected a proposal to give the state labor commissioner power to order the reinstatement of a fired whistleblower, with up to two years worth of back pay and benefits.

Instead, lawmakers approved a measure that gives the labor commissioner authority to attempt to resolve whistleblower disputes and gives workers with civil service protection the right to appeal to a state personnel board.

Savelkoul argued Thursday that the measure did not go far enough. The Industry, Business and Labor Committee will be exploring whether to recommend additional changes for the Legislature to consider during its next session, which begins in January 2011.

Under the present law, workers who believe they have been wronged may have to hire private attorneys to enforce their rights. Three of the four dismissed WSI employees filed lawsuits; two settled for $10,000, while the third lawsuit is pending.

Sen. Tracy Potter, D-Bismarck, a committee member, said he believed the WSI firings hurt morale among state workers.

"Employees were worried that there was a negative associated with coming forward with any complaints about what might be going on in their agencies," Potter said.

Tag Anderson, director of North Dakota's risk management agency, said he believed changes to the whistleblower law should keep disputes within the state's system for resolving administrative appeals. That would be faster and less costly than taking disputes to court, Anderson said.

Savelkoul said state government would be strengthened if employees felt they could report potential wrongdoing without fear of retribution.

"Our state benefits when employees are brave enough to speak up when potentially illegal activity is taking place," he said. "Developing a strong whistleblower law will simply encourage employees to do so when appropriate."