You mother could have an action in tort against her employer if it was in fact malicious and done in retaliation for her "whistle blower" actions. You should have her consult with an attorney in El Paso who specializes in Employment law as well as Tort Actions.
A local employment lawyer can ascertain whether there are any remedies for the retaliation based upon the facts and circumstances, and you can use Avvo's "find a lawyer" tool to find one in your city or state.
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As my colleagues have stated, you need to consult with a local attorney who can evaluate your mother's case. I also recommend getting your mother some psychiatric assistance. If she is indeed exhibiting the symptoms you describe she needs help regardless of whether there is a viable suit or not.
-Michael R. Juarez Law Office of Juarez and Schaeffer PO Box 16216 San Diego, CA 92105 (619) 804-4327 www.jslaw.org Mike@jslaw.org This posting is provided for “information purposes” only and should not be relied upon as "legal advice." Nothing transmitted from this posting constitutes the establishment of an attorney-client relationship. Applicability of the legal principles discussed here may differ substantially in individual situations or in different jurisdictions.
This is really an employment law issue, so I am changing the practice area you specified accordingly.
First, I think your mother should get professional medical help for her problem. In my view, this is far more urgent and important than addressing her legal rights and remedies.
Second, if, as you say, your mother's working environment is impairing her mental health, she should quit her job immediately.
Third, based on your post, I doubt that any kind of defamation action, such as libel or slander, would be viable.
Finally, there are statutes that prohibit retaliation by an employer based on whistle blowing under certain circumstances. Some of them give the injured employee a cause of action for money damages against the employer. To determine whether or not any such statute applies and to take advantage of it, your mother will need to consult an employment law lawyer. I suggest that she consult an El Paso lawyer who is certified in Labor and Employment Law by the Texas Board of Legal Specialization. A link to the Board's website appears below.
I wish you and your mother the best.