The decision to blow the whistle on an employer can be difficult—striking at the very heart of basic principles like loyalty, security and being a team player. In the past, too often, good men and women remained silent. They feared getting involved. They looked the other way. With powerful anti-retaliation protections, the SEC Whistleblower Program has finally leveled the playing field.
The law is clear: Employers may not, directly or indirectly, discharge, demote, suspend, threaten, harass, or in any way discriminate against whistleblowers who: provide information to the SEC; initiate, testify in, or assist in an SEC investigation or related enforcement action; or make any disclosures required or protected by law. Reporting possible securities violations internally may also be considered a legally protected activity, depending on where a whistleblower resides. These protections exist regardless of whether or not the alleged securities violations are proven or lead to a successful enforcement action, as long as whistleblowers reasonably believe that their tips relate to a possible violation of the federal securities laws.
If whistleblowers are subjected to retaliation in violation of the law, they have the right to immediately sue their employers in federal court, without having to exhaust the administrative process before filing. The types of remedies available include reinstatement with equivalent seniority, double back pay with interest, attorney fees, and reimbursement of other litigation related expenses. Whistleblowers have six years from the retaliatory conduct, or three years from when the employee knew or reasonably should have known of the retaliatory conduct, to file a claim—if it is not more than 10 years after the violation occurred.