Employment Law Questions? Ask an Employment Lawyer.
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I am sorry to learn of this situation.
The Whistleblower statute protects employees who act or report information they reasonably believe to be accurate. It does not require that the employee's complaint be found to be true.
The penalty clause in the whistleblower statute allows for employment penalties (up to and including termination) for those employees that do not "make a reasonable attempt to ascertain the correctness" of the information they report.
As far as a civil suit against the employee, you could consider filing one (I would recommend at a minimum consulting with a local attorney before filing any kind of lawsuit over this matter), but your damages would be very limited ("pain and suffering" isn't really a strong damage claim for this kind of suit - that is usually reserved for personal injury claims where the plaintiff is actually physically injured, some courts are expanding that into the emotional torts, such as defamation, but the damage values are much less), and you would have to pay for your own attorney's fees (there is no fee shift for defamation suits).