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Sarbanes-Oxley (SOX) FAQ
What Federal laws protect whistleblowers who report corporate fraud?
Who is protected?
What is “protected activity?”
What is illegal discrimination?
Where should complaints be filed?
What is the statute of limitations?
What remedies are available to employees under the Sarbanes Oxley whistleblower law?
Do other laws protect corporate whistleblowers?

What Federal laws protect whistleblowers who report corporate fraud?

In 2002, Congress passed the historic Sarbanes-Oxley Act, which protects employees of publicly traded companies who report violations of Securities and Exchange Commission regulations or any provision of federal law relating to fraud against the shareholders. (Top )

Who is protected?

Employees of publicly traded companies and contractors, subcontractors, and agencies of publicly traded companies. (Top)

What is “protected activity?”

The Sarbanes-Oxley Act broadly defines protected activity to include reports made to federal regulatory and law enforcement agencies, Congress, an employee’s supervisor, and internal corporate investigators. The law also protects employees who participate or testify in SEC regulatory proceedings or other federal proceedings related to fraud against shareholders. (Top)

What is illegal discrimination?

Adverse changes to the whistleblowers terms and conditions of employment are prohibited. This includes a wide range of actions from reprimands to termination and blacklisting. (Top)

Where should complaints be filed?

US Department of Labor
Office of the Assistant Secretary
Occupational Safety and Health Administration - Room: S2315
200 Constitution Avenue
Washington, DC 20210
202-693-2000
(Top)

What is the statute of limitations?

A complaint filed under the Sarbanes-Oxley Act must be filed with the Department of Labor in writing within 90 days of the time an employee learns that he or she will be, or has been, subjected to discrimination, harassment, or retaliation. (Top)

What remedies are available to employees under the Sarbanes Oxley whistleblower law?

Employees who prevail are entitled to:
  • Reinstatement
  • Backpay with interest
  • Complete “make-whole” compensation (including restoration of seniority/sick leave, etc)
  • “Special Damages” (for emotional distress and loss of professional reputation)*
  • Attorneys’ fees and costs
  • “Affirmative Relief” (such as requiring a letter of apology and formal posting of the decision)
*If an employee is seeking “special damages,” that relief should be requested in their initial complaint. (Top )

Do other laws protect corporate whistleblowers?

Many other federal and state laws have been enacted to protect whistleblowers. The Whistleblower's Handbook: A Step-by-Step Guide to Doing What's Right and Protecting Yourself is the first-ever consumer's guide to whistleblowing. It contains twenty-one clear and comprehensive rules that fully explain the how to effectively blow the whistle. This book is also available directly from the publisher, or at a public library. It is very important that you review this resource in order to determine what laws may protect you and whether you need to take immediate action to protect your rights. For more information about this and other whistleblower publications, please visit the National Whistleblowers Center’s Book Store .
(Top )

whistleblower_law_book_coverWhistleblower Law: A Guide to Legal Protections for Corporate Employees is the first book to explain and analyze the impact and implications of the Sarbanes-Oxley Act, especially as it pertains to the rights of whistleblowers--those who dare to come forward with evidence of financial fraud.

Full Description

 

book cover photo

The Whistleblower's Handbook: A Step-by-Step Guide to Doing What's Right and Protecting Yourself.  The Handbook is the first-ever consumer's guide to whistleblowing. It contains twenty-one clear and comprehensive rules that fully explain the how to effectively blow the whistle.

Full Description
 

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The Sarbanes-Oxley Act is signed into law.  See the Sox whistleblower provisions or the entire SOX Act.