| One of the most significant
pieces of legislation passed last year was the Sarbanes-Oxley
Act — the centerpiece to regaining public confidence
in corporate management. After the collapse of several
big companies in late 2001, Congress began
to look for ways to shore up investor confidence. Whistleblowers
played a key role in bringing corporate wrongdoers
to justice in each of the failed companies.
As a result,
the act specifically addresses concerns for whistleblowers.
It makes it illegal for a public company to discharge
or discriminate against an employee because he or she
provides information to a federal regulatory or law
enforcement agency. The civil whistleblower provisions
extend liability to any officer, employee, contractor,
or agent of the company. Retaliation or retribution
against an employee must be a “contributing factor” in
the adverse employment decision. From an employer
standpoint, you must provide “clear and convincing
evidence” that you would have taken the same
action in the absence of the person’s whistleblowing
activity.
In addition to remedies such as reinstatement, back
pay, and attorney and court fees, employers can be
subject to criminal penalties that might include
up to 10 years in prison. |
