Can’t You Hear the Whistle Blowing: Are Your Employees Now Protected Under the Sarbanes-Oxley Whistleblower Provisions?

Is an employee of a privately-held contractor or subcontractor of a public company protected from retaliation under the whistleblower protection of the Sarbanes-Oxley Act? Yes, according to a recent Supreme Court decision. Privately-held employers need to be proactive to stay in front of this potential wave of employment litigation, as they no longer can assume that they are immune from liability for retaliating against an employee or contractor who blows the whistle on a publicly-held company for which it provides services. Consider reviewing your relationships with public companies, train employees and review policies to prohibit and understand what activity is protected, and remain cautious in making adverse personnel decisions.