Looks like active Indiana blogger and attorney, Paul Ogden, suffered a set back from the 7th Circuit in the case of Odgen v. Atterholt (pdf).
In the course of his employment as manager of the title insurance division at the Indiana Department of Insurance, Mr. Ogden wrote a memo laying out criticisms of Chief Deputy Commissioner Carol Mihalik who had oversight of the the title insurance division by virtue of her responsibilities with the Consumer Protection Unit of which the division was part. The memo was submitted to James Atterholt, the director of the Department of Insurance and requested that the title insurance division be removed from the Consumer Protection Unit. Shortly thereafter Atterholt gave Mr. Ogden a choice between resigning or being terminated. A lawsuit followed.
The complaint apparently had a lot of state law claims as well as a federal claim that being forced out based on a whistle-blowing memo was a free speech violation. The district court and the 7th Circuit disagreed, holding that because this speech was in the course of government employment, the government as employer could terminate the employment without committing a First Amendment violation.
The federal claims having been resolved, the state law claims have been remanded to a state court.