Houston Construction Companies Ordered to Pay $200K for Asbestos Whistleblower Retaliation

Two Houston construction companies were ordered by the Occupational Safety and Health Administration to reinstate two terminated employees and pay more than $200,000 in back wages, interest, compensatory damages, and punitive damages after OSHA investigators found the terminations violated federal whistleblower protections when workers raised asbestos safety concerns during post-hurricane repair work.

Rise Construction LLC, owned by Jivar Foty, and Niko Group LLC, owned by Jessica Foty, fired the workers after they reported to company owners multiple safety violations during hotel repairs following Hurricane Beryl, which struck the Houston area on July 8, 2024. The terminated employees alleged lack of required asbestos training and certification, absence of personal protective equipment, and illegal dumping of asbestos-containing materials.

OSHA's investigation concluded the terminations violated federal whistleblower protections under three environmental statutes: the Clean Air Act, which regulates asbestos emissions from demolition and renovation projects; the Toxic Substances Control Act, which governs industrial chemical handling including asbestos; and the Solid Waste Disposal Act (also known as the Resource Conservation and Recovery Act), which prohibits improper hazardous waste disposal.

The agency enforces whistleblower provisions in 25 federal statutes protecting employees who report safety, health, environmental, and other public interest violations. Under these environmental laws, workers have 30 days from the date of retaliation to file complaints with OSHA. The Department of Labor does not release names of employees involved in whistleblower complaints.

Hurricane Beryl caused extensive damage across the Houston metropolitan area, leaving more than 2.7 million customers without power and requiring widespread rebuilding efforts that continued for months after the July 2024 storm.

Key Points

• Violation: Two workers terminated after reporting asbestos safety concerns during Hurricane Beryl hotel repairs
• Companies: Rise Construction LLC (Jivar Foty) and Niko Group LLC (Jessica Foty), both Houston-based
• Alleged Issues: Lack of asbestos training/certification, missing personal protective equipment, illegal asbestos dumping
• Legal Basis: Violations of Clean Air Act, Toxic Substances Control Act, and Solid Waste Disposal Act whistleblower protections
• Remedies Ordered: Reinstatement, back wages with interest, compensatory damages, punitive damages totaling over $200,000
• Context: Repairs following Hurricane Beryl, which struck Houston on July 8, 2024, causing widespread damage

Primary Source Author: U.S. Department of Labor, Occupational Safety and Health Administration

Primary Source: U.S. Department of Labor, Occupational Safety and Health Administration

Primary Source Link: https://www.dol.gov/newsroom/releases/osha/osha20260212

Supplemental Links

• OSHA Whistleblower Protection Programs Overview
• Clean Air Act Whistleblower Protection Fact Sheet
• Toxic Substances Control Act (TSCA) Whistleblower Protections
• Solid Waste Disposal Act (SWDA) Whistleblower Protections
• EPA Asbestos Laws and Regulations
• OSHA Asbestos Standards for Construction (29 CFR 1926.1101)
• Hurricane Beryl Impact on Texas - Wikipedia
• Houston Hurricane Beryl Disaster Recovery Information