Engineering Ethics

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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