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18 U.S.C. § 1514A — Civil action to protect against retaliation in fraud cases

submitted 24 years ago by Pub. L. 107-204 to r/title-18-CRIMES-AND-CRIMINAL-PROCEDURE · 784 words · no verdicts yet

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Covered public companies, rating organizations, and their representatives may not retaliate against an employee for certain lawful reports, assistance, or participation involving securities or shareholder fraud. The section provides Labor Department and court remedies, including reinstatement, back pay, and damages.

(a) Protection for employees of publicly traded companies. A company with securities registered under section 12 of the Securities Exchange Act of 1934, a company required to file reports under section 15(d) of that Act, a subsidiary or affiliate whose financial information is included in the company’s consolidated financial statements, or a nationally recognized statistical rating organization (as defined in section 3(a) of that Act), and any officer, employee, contractor, subcontractor, or agent of such a company or organization, may not discharge, demote, suspend, threaten, harass, or otherwise discriminate against an employee in employment because of the employee’s lawful act—(1) to provide information, cause information to be provided, or otherwise help an investigation into conduct the employee reasonably believes violates section 1341, 1343, 1344, or 1348, an SEC rule or regulation, or federal law concerning fraud against shareholders, when the information or help is given to, or the investigation is conducted by, (A) a federal regulatory or law-enforcement agency, (B) a Member of Congress or congressional committee, or (C) a supervisor or another person working for the employer who can investigate, discover, or end misconduct; or (2) to file, cause to be filed, testify in, participate in, or otherwise help a proceeding filed or about to be filed, with the employer knowing about it, concerning an alleged violation of those sections, rules, regulations, or federal laws.

(b) Enforcement.
(1) A person who claims that someone violated subsection (a) may seek subsection (c) relief by (A) filing a complaint with the Secretary of Labor, or (B) if the Secretary has not issued a final decision within 180 days and the delay is not shown to result from the claimant’s bad faith, filing a new action at law or in equity in the appropriate United States district court. That court has jurisdiction regardless of the amount in controversy.
(2)(A) An action under paragraph (1)(A) follows section 42121(b) of title 49. (B) The notice required by section 42121(b)(1) must go to the person named in the complaint and the employer. (C) An action under paragraph (1)(B) uses the burdens of proof in section 42121(b). (D) An action under paragraph (1) must begin within 180 days after the violation, or within 180 days after the employee learned of it. (E) A party to an action under paragraph (1)(B) has the right to a jury trial.

(c) Remedies.
(1) An employee who wins an action under subsection (b)(1) is entitled to all relief needed to make the employee whole. (2) That relief includes (A) reinstatement with the seniority the employee would have had without the discrimination, (B) back pay with interest, and (C) compensation for special damages caused by the discrimination, including litigation costs, expert-witness fees, and reasonable attorney fees.

(d) Other rights kept. This section does not reduce an employee’s rights, privileges, or remedies under federal or State law or a collective-bargaining agreement.

(e) Waivers and required arbitration.
(1) The rights and remedies in this section may not be waived by an agreement, policy, form, or employment condition, including an arbitration agreement made before a dispute arises. (2) Such a predispute arbitration agreement is not valid or enforceable if it requires arbitration of a dispute under this section.

the actual law source: uscode.house.gov ↗public domain
(a)Whistleblower Protection for Employees of Publicly Traded Companies.—

No company with a class of securities registered under section 12 of the Securities Exchange Act of 1934 (15 U.S.C. 78l), or that is required to file reports under section 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78o(d)) including any subsidiary or affiliate whose financial information is included in the consolidated financial statements of such company, or nationally recognized statistical rating organization (as defined in section 3(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78c),1 or any officer, employee, contractor, subcontractor, or agent of such company or nationally recognized statistical rating organization, may discharge, demote, suspend, threaten, harass, or in any other manner discriminate against an employee in the terms and conditions of employment because of any lawful act done by the employee—

(1)

to provide information, cause information to be provided, or otherwise assist in an investigation regarding any conduct which the employee reasonably believes constitutes a violation of section 1341, 1343, 1344, or 1348, any rule or regulation of the Securities and Exchange Commission, or any provision of Federal law relating to fraud against shareholders, when the information or assistance is provided to or the investigation is conducted by—

(A)

a Federal regulatory or law enforcement agency;

(B)

any Member of Congress or any committee of Congress; or

(C)

a person with supervisory authority over the employee (or such other person working for the employer who has the authority to investigate, discover, or terminate misconduct); or

(2)

to file, cause to be filed, testify, participate in, or otherwise assist in a proceeding filed or about to be filed (with any knowledge of the employer) relating to an alleged violation of section 1341, 1343, 1344, or 1348, any rule or regulation of the Securities and Exchange Commission, or any provision of Federal law relating to fraud against shareholders.

(b)Enforcement Action.—
(1)In general.—

A person who alleges discharge or other discrimination by any person in violation of subsection (a) may seek relief under subsection (c), by—

(A)

filing a complaint with the Secretary of Labor; or

(B)

if the Secretary has not issued a final decision within 180 days of the filing of the complaint and there is no showing that such delay is due to the bad faith of the claimant, bringing an action at law or equity for de novo review in the appropriate district court of the United States, which shall have jurisdiction over such an action without regard to the amount in controversy.

(2)Procedure.—
(A)In general.—

An action under paragraph (1)(A) shall be governed under the rules and procedures set forth in section 42121(b) of title 49, United States Code.

(B)Exception.—

Notification made under section 42121(b)(1) of title 49, United States Code, shall be made to the person named in the complaint and to the employer.

(C)Burdens of proof.—

An action brought under paragraph (1)(B) shall be governed by the legal burdens of proof set forth in section 42121(b) of title 49, United States Code.

(D)Statute of limitations.—

An action under paragraph (1) shall be commenced not later than 180 days after the date on which the violation occurs, or after the date on which the employee became aware of the violation.

(E)Jury trial.—

A party to an action brought under paragraph (1)(B) shall be entitled to trial by jury.

(c)Remedies.—
(1)In general.—

An employee prevailing in any action under subsection (b)(1) shall be entitled to all relief necessary to make the employee whole.

(2)Compensatory damages.—

Relief for any action under paragraph (1) shall include—

(A)

reinstatement with the same seniority status that the employee would have had, but for the discrimination;

(B)

the amount of back pay, with interest; and

(C)

compensation for any special damages sustained as a result of the discrimination, including litigation costs, expert witness fees, and reasonable attorney fees.

(d)Rights Retained by Employee.—

Nothing in this section shall be deemed to diminish the rights, privileges, or remedies of any employee under any Federal or State law, or under any collective bargaining agreement.

(e)Nonenforceability of Certain Provisions Waiving Rights and Remedies or Requiring Arbitration of Disputes.—
(1)Waiver of rights and remedies.—

The rights and remedies provided for in this section may not be waived by any agreement, policy form, or condition of employment, including by a predispute arbitration agreement.

(2)Predispute arbitration agreements.—

No predispute arbitration agreement shall be valid or enforceable, if the agreement requires arbitration of a dispute arising under this section.

Source credit: (Added Pub. L. 107–204, title VIII, § 806(a), July 30, 2002, 116 Stat. 802; amended Pub. L. 111–203, title IX, §§ 922(b), (c), 929A, July 21, 2010, 124 Stat. 1848, 1852.)

history & why it existsrecord from the source credit
  • 2002Enacted · Pub. L. 107-204 · 116 Stat. 802
  • 2010Amended · Pub. L. 111-203 · 124 Stat. 1848, 1852

A history note hasn’t been published yet. The record shows enactment by Pub. L. 107-204 on 2002-07-30.

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