Protections Against Reporting Employer Wrongdoing As A Whistleblower

Understanding The Whistleblower Law Under The Sarbanes-Oxley Act

In 2002, the U.S. Congress passed the Sarbanes-Oxley Act, requiring publicly traded companies to give a full and honest reporting of their financial standing.

Under provisions of the law, any employee, ex-employee or independent contractor with knowledge of fraudulent practices at the company can report the conduct by filing a lawsuit on behalf of the government.

Examples Of Fraudulent Practices

Types of unlawful conduct that are often reported include:

  • Falsifying cash position of the company
  • Pyramid investment schemes, Ponzi schemes
  • Falsifying earnings in stockholder reports
  • Churning or inappropriate investments
  • Illegal junk bond transactions
  • Underreporting of expenses
  • Illegal investments

If the government proves that accounting or reporting fraud or other illegal practices are taking place, the individual initiating the lawsuit is eligible to receive up to 35 percent of the total money recovered, which can include punitive damages and legal fees.

Retaliation For Whistleblowing

In many instances, employers have retaliated against employees who have threatened or reported fraudulent conduct by the company including:

  • Verbal threats
  • Harassment
  • Termination
  • Demotion or reassignment to an inferior position

However, whistleblower laws are very clear: Employers may not take retaliatory measures against an employee who reports a violation of the law.

The employer may be ordered to pay punitive damages to the worker, including all legal fees.

Contact An Attorney For Help

If you have spoken up about your company's fraudulent behavior or are being threatened if you do, contact the Law Office of William M. Julien, P.A.

With over 20 years of experiencing handling a wide range of employment law matters for employees, it is the litigation firm workers turn to for protecting their rights on the job.

Call 866-569-7398 to schedule a free, confidential consultation. You can also send an email. You will never pay attorneys' fees unless monetary damages are recovered.