Dodd-Frank Act Expands Whistleblower Protections

The Dodd-Frank Act includes significant amendments to the whistleblower protection provisions of the Sarbanes-Oxley Act of 2002 (SOX) and adds new private rights of action for whistleblowers. For instance:

• It establishes a whistleblower incentive program requiring the SEC to generally pay a whistleblower in securities law actions leading to the recovery of more than $1 million a bounty of between 10 and 30 percent of the recovery.
• It amends the Securities Exchange Act of 1934 to generally prohibit employers from taking punishing acts against an employee for providing information to the SEC; assisting in certain actions relating to that information; or making disclosures that are required or protected under SOX, the Securities Exchange Act or another law, rule or regulation subject to the jurisdiction of the SEC.
• Aggrieved employees now have 180 days instead of 90 days to file a complaint with the OSHA beginning with the date of the violation OR the date the employee became aware of it.
• It expands SOX coverage to include employees of “nationally recognized statistical rating organization[s]” as well as employees of subsidiaries of publicly traded companies in specific instances.
• And more.

Check out a more detailed description of these changes and more online at www.vscpa.com.