Faye K. Bernstein, a compliance officer at the Minnesota Department of Human Services (DHS), alleges she endured retaliation after flagging serious compliance issues around state opioid contracts in mid‑2019. Bernstein claims she was excluded from key meetings, reassigned to menial tasks, and even told to seek therapy for raising concerns about contract irregularities.
What She Alleged
Bernstein first notified agency leadership about legally questionable contracts in the Behavioral Health Division, including multimillion-dollar drug abuse prevention agreements that bypassed standard scoring and approval processes. She served formal complaints naming multiple supervisors and called for corrective action to prevent further misuse of taxpayer funds.
After sending an all-staff email encouraging colleagues to speak up, Bernstein was escorted out of the office and barred from fulfilling her duties—effectively sidelining her role in contract compliance monitoring..
Audit & Legislative Oversight
An internal audit later confirmed widespread mismanagement: more than 200 contract violations across DHS in 2019 alone, totaling over $48 million in erroneous commitments and overpayments to behavioral health providers and tribal entities.
Minnesota’s Legislative Auditor also reported structural failures at DHS, including insufficient internal controls, unclear supervisory accountability, and weak oversight of fraud investigations (Star Tribune audit reports).
Retaliation Confirmed by Investigators
Fox 9 later reported that Bernstein had requested a paid leave due to safety concerns at work. She stated she received a warning—verbally and via email—that she could face termination for speaking publicly about these contract issues. Despite DHS commissioner assurances that retaliation wouldn’t be tolerated, Bernstein described a deeply hostile environment that contradicted official promises.
Legislative Reforms in Progress
Lawmakers—from both parties—have begun pushing for change. Minnesota House Bill HF 23, passed unanimously in 2025, expanded whistleblower protections to include reports of fraud and misuse of funds in state agencies, aiming to prevent retaliation against employees exposing wrongdoing.
Republican leaders also called for a federal audit of DHS amid mounting evidence of mismanagement across Medicaid housing, autism, and recovery service programs. That audit request highlighted $610 million in suspected fraud within state-administered funds.
Related: Revisiting: Internal DHS Audit Vindicates Whistleblower Alleging Retaliation c. 2020
References
Fox 9 Minneapolis–St. Paul. (2025, November). Minnesota DHS whistleblower says she faces retaliation, was told to seek therapy. https://www.fox9.com/news/minnesota-dhs-whistleblower-says-she-faces-retaliation-was-told-to-seek-therapy
Howatt, G., & Serres, C. (2019, October 26). DHS whistleblower alleges ongoing retaliation for raising alarms over state opioid contracts. Star Tribune. https://www.startribune.com/dhs-whistleblower-alleges-ongoing-retaliation-for-raising-alarms-over-state-opioid-contracts/563860952
Robbins, K. (2025, July 23). House Republicans call for federal audit of Minnesota DHS amid widespread Medicaid fraud. Minnesota House of Representatives. https://www.house.mn.gov/members/profile/news/15504/50972
Swedzinski, C. (2025, March 12). Whistleblower protection bill passes House. Minnesota House of Representatives. https://www.house.mn.gov/Members/Profile/News/15369/50378
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