Sarbanes Oxley Act Section 806

 

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:
 
‘‘ 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. 78o(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
 
‘‘(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.
 
‘‘(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.’’.
 
(b) CLERICAL AMENDMENT.—The table of sections at the beginning
of chapter 73 of title 18, United States Code, is amended
by inserting after the item relating to section 1514 the following
new item:
 
‘‘1514A. Civil action to protect against retaliation in fraud cases.’’.

   

 

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