Are whistleblowers protected from retaliation?

Conflicting rulings from circuit, district courts muddy the waters

An essential aspect of the Dodd-Frank Act is the whistleblower provision, which encourages employees to report potential fraud or wrongdoing in their companies internally or to the Securities and Exchange Commission. But in order to go out on a limb and report suspicious activities, employees would want to ensure that they are protected from retaliation.

Whether they are, though, appears to be a sticky matter. There have been conflicting rulings coming from circuit and district courts that are in direct opposition. For example, in one case involving a whistleblower from General Electric, the 5th Circuit Court ruled that employees had to report to the SEC directly in order to be protected from retaliation.

Senior Editor and Community Manager

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Rich Steeves

Richard P. Steeves is Senior Editor and Community Manager of InsideCounsel magazine, where he covers the intellectual property and compliance beats. Rich earned a B.A....

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