In Lawson v. FMR LLC,1 the Supreme Court massively expanded the scope of the anti-retaliation provision of the Sarbanes-Oxley Act (SOX), from 4,500 publicly held companies to millions of private companies that are “contractors,” “subcontractors” or “agents” of a publicly held company. Going forward, privately held employers should be aware that SOX provides a remedy for almost all U.S. employees who suffer adverse employment actions for reporting fraud. Employers should train their management and human resources personnel to identify potential employment issues of this type and remedy them before they become costly litigation.
Home > Federal Law Articles > Human Resources > Whistleblowing > Supreme Court’s First Sarbanes-Oxley Decision Promises Expansion of Coverage to Most Privately Held Businesses