Employees of public companies, and of their contractors and subsidiaries, are protected when they report conduct they reasonably believe violates securities laws, fraud statutes or regulations.
Covered employers. Issuers, and their officers, contractors, subcontractors and agents. Employees of privately held contractors performing work for an issuer are covered, which is broader than most employers assume.
Protected conduct. Providing information to a federal agency, to Congress, or to a person with supervisory authority within the company — internal reporting is expressly covered.
Reasonable belief that the conduct violates one of the enumerated provisions. The employee need not identify the specific provision or establish an actual violation.
Causation. Contributing factor, with the employer’s burden to show by clear and convincing evidence that it would have acted the same way.
Procedure. A complaint with the labour department within a stated period, with the right to remove to federal court if no final decision issues within a period.
Remedies. Reinstatement with seniority, back pay with interest, and special damages including reputational harm and fees. Compensatory damages are available and there is no cap.
Arbitration. Predispute arbitration agreements are unenforceable for these claims by statute.