Sarbanes-Oxley Act of 2002 (SOX)
Section 806 of the Sarbanes-Oxley Act of 2002 (SOX) protects employees of publicly traded companies from retaliation by their employer because of any lawful act taken 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
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)
2. To file, or 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.
An individual has 90 days from the date of the violation to initiate a claim under SOX.
To initiate a claim under SOX, an individual must first file a complaint with the Department of Labor. If the complaint stays within the Department of Labor, a hearing is held in front of an Administrative Law Judge of the Department of Labor.
If the Department of Labor does not issue a final decision within 180 days of filing the complaint, the individual may file a federal compliant with the appropriate district court. In Wisconsin, this would be either the Eastern District or Western District.
A prevailing Sarbanes Oxley Act complainant is entitled to make-whole relief, including reinstatement, back pay (lost wages) with interest, litigation costs, expert witness fees, and reasonable attorneys’ fees.
View the full text of the Sarbanes Oxley Act of 2002 (SOX).