The Sarbanes-Oxley Act (SOX) protects whistleblowers by allowing them to take legal action if they face retaliation for corporate whistleblowing. Under SOX, whistleblowers who face retaliation can seek compensation for their losses.
A Boston whistleblower protection lawyer can give you more information about the Sarbanes-Oxley Act and help with your legal needs if an employer retaliates against you for protected whistleblowing.
How the Sarbanes-Oxley Act (SOX) Protects Whistleblowers
SOX cannot stop employers from retaliating against corporate employees who report specific types of unethical or unlawful behavior. Instead, the Act provides a way for employees who face retaliation to file a legal claim and seek compensation for their losses.
SOX specifically protects certain corporate employees who report acts violating:
- Federal regulations against wire fraud, mail fraud, bank fraud, and securities fraud
- Regulations and rules from the Securities and Exchange Commission (SEC)
- Federal laws that relate to fraud against shareholders
Additionally, SOX only offers protection to whistleblowers who provide information or assistance to federal law enforcement or regulatory agencies, members of Congress, committees of Congress, or individuals who have supervisory authority over the reporting employee.
Note that other laws may protect whistleblowers who fall outside of these categories. You can learn about other Massachusetts whistleblower laws and protections with a team of legal professionals.
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Actions Prohibited by the Sarbanes-Oxley Act
The Sarbanes-Oxley Act provides protections against a range of retaliatory actions. For example, the Act can provide you with legal protections if an employer retaliates against corporate whistleblowing by:
- Firing you
- Demoting you
- Suspending you
- Threatening you
- Harassing you
- Discriminating against you
In fact, merely disclosing a whistleblower’s identity may constitute retaliation under SOX.
Compensation Available Through a SOX Whistleblower Claim
If an employer retaliates against you for whistleblowing, you may qualify to file a legal claim under SOX. If your attorney successfully handles your claim, you have a chance to recover compensation that covers:
- Lost wages and lost benefits
- Front pay
- Emotional distress
- Impairment of your reputation
- Personal humiliation
An attorney can determine a fair value for all of your losses if you experience retaliation.
Can You Get Punitive Damages?
Massachusetts sometimes awards punitive damages to victims of workplace retaliation. These damages serve to punish the individual who engaged in retaliation rather than directly addressing a victim’s losses.
The court system does not award punitive damages in all cases. An attorney can give you more information about these damages and explain how the Sarbanes-Oxley Act (SOX) protects whistleblowers.
How Much Compensation Can You Get After Retaliation?
The value of a whistleblower retaliation claim will vary depending on the extent of the damage done to your finances and other factors. A lawyer will need to review your losses to determine the value of your claim.
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Proving That Someone Violated SOX Regulations
To get compensation after facing retaliation for whistleblowing, an attorney will have to prove that the employer engaged in restricted behavior. Generally, this means gathering evidence to show that:
You Engaged in a Protected Activity
Your attorney will need to demonstrate that you were protected by SOX regulations when you engaged in whistleblowing. For example, an attorney may need to show that you reported your employer for engaging in wire fraud to the SEC.
Your Employer Knew You Engaged in Protected Activity
A lawyer must also show that your employer knew that you took part in an activity protected under SOX. In this case, your employer must show that your employer knew you reported on illegal activity.
Your Employer Retaliated
An attorney will need to show that your employer took retaliatory action against you. For example, your lawyer may need to prove that an employer cut your hours right after discovering an act of whistleblowing.
Your lawyer will also need to connect the retaliatory action to the whistleblowing. You should get legal help quickly if you suspect retaliation, so your attorney can immediately start an investigation and collect all the available evidence.
A lawyer can also answer any questions that you have, handle legal communication for you, and explain each step you need to take.
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Learn More About the Sarbanes-Oxley Act From Our Team
So, how does the Sarbanes-Oxley Act (SOX) protect whistleblowers? The Act gives whistleblowers the right to take legal action against employers who retaliate against lawful whistleblowing.
If you believe you’ve faced workplace retaliation after an act of whistleblowing, you can get help building your claim and understanding SOX protections from our team at Duddy, Goodwin & Pollard. Our law firm has extensive experience and the legal knowledge necessary to confidently help with your retaliation claim.
We can also explain how to make a whistleblower complaint if you have yet to report an act of misconduct. We can walk you through the whistleblowing process and provide the support you deserve every step of the way. Schedule a free consultation today.
Call or text (860) 999-9394 or complete a Free Case Evaluation form