What Employment Protections are Available for SEC Whistleblowers?

The U.S. Securities and Exchange Commission (SEC) provides employment protections for whistleblowers reporting potential federal securities laws violations. These protections are provided under the SEC’s whistleblower program, established under the Dodd-Frank Wall Street Reform and Consumer Protection Act in 2010.

Under the SEC Whistleblower Program, employees who report possible securities violations to the SEC are protected from retaliation by their employers. Specifically, employers are prohibited from firing, demoting, suspending, threatening, harassing, or discriminating against whistleblowers in any way for reporting potential securities violations.

If an employer violates these whistleblower protections, the whistleblower may file a complaint with the Department of Labor’s Occupational Safety and Health Administration (OSHA) within 180 days of the retaliation. OSHA will then investigate the complaint, and if it finds that retaliation has occurred, it may order the employer to reinstate the whistleblower, pay back wages, and provide other forms of relief.

In addition to these employment protections, the SEC’s whistleblower program provides financial incentives to whistleblowers who provide information leading to a successful enforcement action. Whistleblowers who provide original information that leads to a successful SEC enforcement action with sanctions exceeding $1 million may be eligible for an award of between 10% and 30% of the monetary sanctions collected by the SEC.

This financial incentive is designed to encourage individuals to come forward with information about securities violations, even if doing so may put their jobs at risk.