United States Supreme Court Expands Whistleblower Protection to Private Contractors, Subcontractors Working for Public Companies

Source: Stuart L. Bass and Anthony Basile, Labor Law Journal, Vol. 65 no. 4, Winter 2014
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…. The issue before the Supreme Court was to interpret the whistleblower provisions of Sarbanes-Oxley. The Court had to decide whether section 806 of SOX prevented retaliation by public companies against employees who were engaged in particular whistleblowing incidents extended to employees of private contractors as well as subcontractors of public companies. Ever since the collapse of Enron Corporation, Congress has focused in insuring corporate whistleblowers are protected from retaliation. Indeed, the Dodd-Frank statute sought to expand SOX’s whistleblower protection to employees of public companies and subsidiaries. … The author suggests in light of the Lawson decision private companies must prepare themselves to deal with whistleblower complaints …. The time has come for all such companies, particularly privately held companies, to develop their own whistleblower policies. ….