The SEC has continued and expanded its focus on violations of
Rule 21F-17 of the Securities Exchange Act of 1934 (i.e., the
whistleblower protection rule).
The SEC began actively enforcing the whistleblower protection
rule many years ago, although enforcement actions in late 2023
reflected an intensified focus on whistleblower protections in
separation agreements and other employment documents.
However, the SEC has recently made it clear that whistleblower
protections apply not just in the context of agreements with
employees and former employees but also to arrangements with other
third parties.
Background on the Whistleblower Protection Rule
The whistleblower protection rule, implemented by the SEC in
2011 to fulfill its mandate under Section 922 of the Dodd-Frank
Wall Street Reform and Consumer Protection Act of 2010
("Dodd-Frank"), prohibits a company from taking "any
action to impede an individual from communication directly with the
[SEC] staff about a
