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Sarbanes Oxley
Act Section 806
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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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