The U.S. Securities and Exchange Commission (SEC) brought more actions targeting regulated entities for recordkeeping violations related to employees using noncompany communications platforms, and both the SEC and the U.S. Department of Justice (DOJ) took more actions to enforce their whistleblower programs. These moves are some of the latest by
Articles Discussing Employee Whistleblowers.
CFPB Warns Employee NDAs, Confidentiality Agreements May Violate Whistleblower Laws
On July 24, 2024, the Consumer Financial Protection Bureau (CFPB) issued guidance putting financial regulators and employers on notice that requiring employees to sign broad confidentiality or nondisclosure agreements that arguably deter employees from reporting alleged misconduct to federal watchdogs or from engaging in other whistleblower activity may violate federal
CFTC Fines Commodities Trader $55 Million in First-Ever Whistleblower Rule Enforcement Action
The Commodity Futures Trading Commission (CFTC) has joined the list of federal agencies targeting employment nondisclosure agreements and other restrictive covenants that allegedly restrict employees from making reports to federal watchdogs as they seek to encourage more whistleblower activity.
New Requirement for Labor Commissioner to Develop Whistleblower Posting for Employers
California’s Governor signed Assembly Bill (AB) 2299 on July 15, 2024, which requires the state’s Labor Commissioner to develop a model list of employee rights and responsibilities under existing whistleblower laws. Employers will be required to post this notice beginning January 1, 2025. The notice must be written in a
The Importance of Whistleblower Protection and Wellbeing in the Age of Mental Health Awareness
There are countless examples in recent news highlighting the potential for far-reaching consequences when wrongdoing goes unchecked, and when whistleblowers face unbridled public scrutiny. Safety hazards could result in serious injuries or even further loss of life and financial penalties and reputational damage could be significant. By protecting whistleblowers, taking
DOJ Launches New Pilot Program to Allow Whistleblowers Who Report Financial Crimes, Corruption to Avoid Prosecution
On April 15, 2024, the U.S. Department of Justice (DOJ) Criminal Division launched a new pilot program to enable whistleblowers to avoid prosecution when they voluntarily report new information to federal law enforcement authorities about criminal conduct involving corporations, including financial crimes, bribery, and corruption.
SCOTUS: Retaliatory Intent Not an Element of SOX Retaliation Claim
Supreme Court decision clarifies framework for whistleblowers filing claims under the Sarbanes-Oxley Act. Plaintiffs need to prove only that their whistleblower activity was a contributing factor in their termination, but still must ultimately show causation.
U.S. Supreme Court Decision Could Make it Harder for Employers to Defend Whistleblower Claims
Executive Summary: The U.S. Supreme Court recently held that a whistleblower under the Sarbanes Oxley Act of 2002 (SOX) is not required to prove the employer acted with retaliatory intent to prevail on a whistleblower claim. See Murray v. UBS Sec., LLC, 2024 WL 478566 (Feb. 8, 2024).
Supreme Court Rules ‘Retaliatory Intent’ Not Required for Securities Whistleblower Protection
On February 8, 2024, the Supreme Court of the United States issued a decision holding that whistleblowers are not required to show “retaliatory intent” to be protected under the Sarbanes-Oxley Act of 2002, differentiating the securities whistleblower law from other federal antidiscrimination laws.
Unanimous Supreme Court Bolsters Whistleblower Claims
SEC Takes on Nondisclosure Agreements to Protect Whistleblower Program; Fines Firm $10 Million
The U.S. Securities and Exchange Commission (SEC) in recent years has taken an aggressive stance against employers over employment agreements that the agency believes impede its whistleblower program—as highlighted by a $10 million fine in 2023 imposed on an investment firm over its inclusion of nondisclosure and confidentiality provisions.
SEC Fines Private Employer for Language in Employee Separation Agreements That Restricted Whistleblower Awards
The U.S. Securities and Exchange Commission (SEC) recently settled charges alleging that a company’s employee separation agreements restricted former employees from receiving monetary awards for reporting securities law violations. The case is the SEC’s latest enforcement action alleging that certain employment agreements and related policies undermine the SEC’s whistleblower program.
Whistleblower Implications of Titanic Proportions
While the world held its collective breath last month as search teams desperately looked for a missing submersible carrying five Titanic tourists, news reports began circulating of a former OceanGate director of marine operations who was allegedly fired for raising safety concerns years earlier regarding that same vessel. Sadly,
Whistleblowers and Trade Secrets: Does the DTSA Protect Confidential Data?
Employers often go to great lengths to protect company documents and communications concerning and discussing confidential trade secret information. But what happens when employees leave, bring a whistleblower claim, and the employer learns they have sent themselves numerous confidential communications containing trade secret information? What about when an employee later
New Law Rewarding Whistleblowers May Lead to Substantial Increase in Whistleblower Claims
In conjunction with an omnibus spending bill, Congress passed in late December 2022, the Anti-Money Laundering Whistleblower Improvement Act, which on December 29, 2022, President Biden signed into law. This law permits whistleblowers to receive 10% to 30% of any monetary sanction the government imposes over $1 million for money