Covering Business Credit Logo Home   About Us   Services   Credit Articles   Q&A   Contact  

  Business Credit Law and Regulations  

Protecting The Whistle Blower
Under The Sarbanes-Oxley Act

Credit Law Articles
All Articles •  Home

Reprinted by permission from Trade Vendor Quarterly Blakeley & Blakeley LLP

In July 2002, Congress passed the Sarbanes-Oxley Act (SOA) which includes measures to protect "whistle-blowers" who report their company's financial wrongdoing. SOA applies to employees of public companies. SOA requires companies to set up procedures for anonymous reporting of fraud allegations. Employees can disclose their concerns to regulators, law-enforcement officials or Congress with only a "reasonable belief" that a law has been violated. Lawsuits can be filed by employees who have been fired, demoted or even threatened for reporting such allegations. Not only lawsuits but criminal penalties are now authorized against someone who retaliates against an employee for reporting concerns regarding illegal conduct.

Complaints are required to be filed within 90 days of the alleged retaliation. The OSHA, which usually deals with complaints involving things such as asbestos or drinking-water safety, will bring in outside experts for guidance to deal with the financial and accounting issues sure to come.

Federal statutes only protect employees who report wrongdoing involving the government. Otherwise employees have to face state laws for retaliation claims. But state laws vary widely and often do not offer a level of protection which would encourage "whistle-blowing."

Blakeley & Blakeley LLP - Trade Vendor Monthly News Flash - November 2002. This information is not intended to constitute legal advice, nor a substitute for legal advice. once again link Blakeley & Blakeley LLP.

Share |

Business Credit Articles
Send to a Friend
Ask A Credit Question
Questions & Answers
Business Credit News
Your Privacy
Site Map