SARBANES-OXLEY ACT
OF 2002
SEC. 806. PROTECTION FOR EMPLOYEES OF PUBLICLY
TRADED COMPANIES WHO PROVIDE EVIDENCE OF FRAUD
(a) IN GENERAL Chapter 73 of title 18, United States Code, is
amended by inserting after section 1514 the following:
Sec. 1514A. Civil action to protect against retaliation in fraud cases
(a) WHISTLEBLOWER PROTECTION FOR EMPLOYEES OF
PUBLICLY TRADED COMPANIES No company with a class of
securities registered under section 12 of the Securities Exchange Act
of 1934 (15 U.S.C. 78l), or that is required to file reports under section
15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 780(d)), or any
officer, employee, contractor, subcontractor, or agent of such company,
may discharge, demote, suspend, threaten, harass, or in any other
manner discriminate against an employee in the terms and conditions
of employment because of any lawful act done by the employee—
(1) to provide information, cause information to be provided, or
otherwise assist in an investigation regarding any conduct which
the employee reasonably believes constitutes a violation of
section 1341, 1343, 1344, or 1348, any rule or regulation of the
Securities and Exchange Commission, or any provision of Federal
law relating to fraud against shareholders, when the information
or assistance is provided to or the investigation is conducted by—
(A) a Federal regulatory or law enforcement agency;
(B) any Member of Congress or any committee of Congress; or
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212 Engineering Ethics: An Industrial Perspective
(C) a person with supervisory authority over the employee (or
such other person working for the employer who has the
authority to investigate, discover, or terminate
misconduct); or
(2) to file, cause to be filed, testify, participate in, or otherwise
assist in a proceeding filed or about to be filed (with any
knowledge of the employer) relating to an alleged violation
of section 1341, 1343, 1344, or 1348, any rule or regulation of
the Securities and Exchange Commission, or any provision
of Federal law relating to fraud against shareholders.
(b) ENFORCEMENT ACTION
(1) IN GENERAL A person who alleges discharge or other
discrimination by any person in violation of subsection (a) may
seek relief under subsection (c), by—
(A) filing a complaint with the Secretary of Labor; or
(B) if the Secretary has not issued a final decision within
180 days of the filing of the complaint and there is no
showing that such delay is due to the bad faith of the
claimant, bringing an action at law or equity for de
novo review in the appropriate district court of the
United States, which shall have jurisdiction over such
an action without regard to the amount in controversy.
(2) PROCEDURE
(A) IN GENERAL An action under paragraph (1)(A) shall
be governed under the rules and procedures set forth in
section 42121(b) of title 49, United States Code
(B) EXCEPTION Notification made under section
42121(b)(1) of title 49, United States Code, shall be
made to the person named in the complaint and to the
employer.
(C) BURDENS OF PROOF An action brought under
paragraph (1)(B) shall be governed by the legal burdens
of proof set forth in section 42121(b) of title 49, United
States Code.
(D) STATUTE OF LIMITATIONS An action under
paragraph (1) shall be commenced not later than 90
days after the date on which the violation occurs.
(c) REMEDIES
(1) IN GENERAL An employee prevailing in any action under
subsection (b)(1) shall be entitled to all relief necessary to
make the employee whole.
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(2) COMPENSATORY DAMAGES Relief for any action under
paragraph (1) shall include—
(A) reinstatement with the same seniority status that the
employee would have had, but for the discrimination;
(B) the amount of back pay, with interest; and
(C) compensation for any special damages sustained as a
result of the discrimination, including litigation costs,
expert witness fees, and reasonable attorney fees.
(d) RIGHTS RETAINED BY EMPLOYEE Nothing in this section
shall be deemed to diminish the rights, privileges, or remedies of
any employee under any Federal or State law, or under any
collective bargaining agreement.
Sarbanes-Oxley Act of 2002, Sec. 806.
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