If your employer threatens, terminates, suspends, or demotes you in any manner because of your verbal or written concerns over its fraudulent or illegal activities, you may have a Sarbanes-Oxley claim against your employer. The Sarbanes-Oxley Act, enacted to reduce corporate fraud in America’s corporations, contains a provision that protects corporate “whistleblowers” from retaliation or discipline after making certain disclosures about fraudulent or illegal activities in their company. More specifically, Sarbanes-Oxley grants protection to employees expressing concern or disclosing information regarding internal fraud, securities fraud, or fraud against shareholders.
Sarbanes-Oxley protects whistleblowers who are employed either by a publicly traded company, or by a contractor, subcontractor, agent, or subsidiary of such a publicly traded company. A publicly traded company is a company with a class of securities, or one that is required to file reports under the Securities Exchange Act of 1934, and contractors, subcontractors, agents, or subsidiaries of publicly traded companies can include any number of businesses or individuals that work with or for a publicly traded company. Individuals employed by a publicly traded company, or by its contractor, subcontractor, agent, or subsidiary who make a disclosure covered by Sarbanes-Oxley are entitled to protection and are afforded remedies in the event that their employer retaliates against them for whistleblowing.
In order to qualify as a whistleblower covered by Sarbanes-Oxley, an employee’s concerns must be communicated to a supervisor, federal agency, or any Member of Congress. Employees that have been retaliated against for making a disclosure covered by Sarbanes-Oxley may file a Sarbanes-Oxley claim against their employer. A prevailing employee is entitled to reinstatement in their former job, back pay and benefits, compensation for mental pain and suffering, and payments for loss of future earnings and professional reputation. The injured employee also may be awarded compensation for expenses incurred during the litigation process, such as witness’ and attorney’s fees and other costs.
To learn about the Sarbanes-Oxley Act and what constitutes "whistleblowing" for which protection is provided, please read the following: A Protected Whistleblower under Sarbanes-Oxley
To learn about recent developments in Sarbanes-Oxley whistleblower cases, read our blog at http://www.employmentlawgroupblog.com/
