Under Sarbanes-Oxley, public companies must adopt a business ethics code and create an internal procedure by which employee reports about fraud or ethical violations can be taken, reviewed, and solicited.

Often considered one of the most important whistleblower protection laws due to its diverse administrative, criminal and civil provisions, the Sarbanes-Oxley Act contains significant protections for whistleblowers to ensure that employees can safely disclose information which may harm investors, especially fraud.

In 2002, Congress passed the historic Sarbanes-Oxley Act, which protects employees of publicly traded companies who report violations of Securities and Exchange Commission regulations or any provision of federal law relating to fraud against the shareholders.

Whistleblowers are protected from retaliation for disclosing information that the employee or applicant reasonably believes provides evidence of a violation of any law, rule, regulation, gross mismanagement, gross waste of funds, an abuse of authority, or a substantial and specific danger to public health or safety.

101-12 as amended, is a United States federal law that protects federal whistleblowers who work for the government and report the possible existence of an activity constituting a violation of law, rules, or regulations, or mismanagement, gross waste of funds, abuse of authority or a substantial and specific danger to …

The Whistleblower Protection Enhancement Act of 2012 was signed into law in November 2012, and provides that the implementation and enforcement of nondisclosure agreements by the Department shall be consistent with the existing statutory framework for whistleblower protections, as set forth below.

Whistleblowers are often protected under law from employer retaliation, but in many cases punishment has occurred, such as termination, suspension, demotion, wage garnishment, and/or harsh mistreatment by other employees.

Damages that you could receive in a Sarbanes-Oxley whistleblower suit against your employer include: Reinstatement in the job from which you were wrongfully terminated; Back pay with interest; Attorney’s fees and other costs of bringing the whistleblower lawsuit; 5 and/or.

A whistleblower is defined as someone who informs the authorities about a person or organization engaged in illegal or unacceptable behavior. OSHA’s whistleblower laws protect employees from employer retaliation, such as dismissal, discipline, harassment, and demotion.

A whistleblower who files a successful claim is paid a reward that equals between 15% and 25% of the amount recovered by the government if the government joined in the case prior to settlement or trial.

The whistleblower (known as the “relator” in qui tam cases) may receive a reward of 15 percent to 25 percent of what the government recovers, if the government joins the qui tam case.

Typically, it takes several months for an attorney to pull together and file the complaint, and the government investigation takes around 1-2 years, but can take up to as much as 10 depending on the case.

Challenges Trust One of the disadvantages of whistleblowing is that it can lead to a breakdown of trust. Companies typically prefer that employees use internal communication systems if they are uncomfortable with activities going on in their departments or the company.

Whistleblowers are people who have made the decision to report wrongdoing that they have witnessed. These individuals have typically weighed the consequences of their actions and determined that speaking out against wrongdoing is the best option.

Individual harm, public trust damage, and a threat of national security are three categories of harm that may come as a result of whistleblowing. Revealing a whistleblower’s identity can automatically put their life in danger.

Among personality traits, people who are high in extraversion are more likely to blow the whistle [18]. Finally, people with a proactive personality, who seek to influence and control their environment, are less susceptible to situational influences and appear more likely to engage in whistleblowing [18–20].

Why People Become Whistleblowers

1. To Bring Positive Change in the Company. The typical whistleblower is an individual who is keenly interested in the success of the company.
2. To Protect the Public. Another reason why a person might become a whistleblower is to protect consumers and the public in general.
3. To Obtain Compensation.