Understanding SOX Whistleblower Protections

Recognizing the conduct that can lead to whistleblower claims is an important aspect of solid corporate governance. Whistleblower claims under the Sarbanes-Oxley Act (SOX) and/or Dodd-Frank Act are on the rise and have the potential to overwhelm even the most disciplined of companies. The authors of Understanding SOX Whistleblower Protections highlight whistleblower safeguards under both SOX and the more recent Dodd-Frank Act that amended SOX in 2010. Specifically, this legislation makes it unlawful for covered entities and their officers, employees, contractors, and agents to engage in adverse employment actions against whistleblowers; such adverse actions include discharging, demoting, suspending, threatening, harassing, or in any way discriminating against an employee based on the terms and conditions of employment, because the employee engaged in protected activity under SOX.