The health system general counsel may wish to take note of
recent SEC enforcement actions with respect to severance agreements
that were interpreted by the Commission as limiting the ability of
outgoing employees to file applications for SEC whistleblower
awards. The general counsel may wish to coordinate her response
with the SVP/Human Resources, and with the Chief Compliance
Officer.
In orders announced August 10 and August 16, respectively, the SEC announced that
two separate companies had agreed to pay monetary penalties and to
implement other remedial action for (allegedly) illegally using
severance agreements as a means of placing barriers to accessing
the SEC's whistleblower program. In one order, the cited
conduct was a waiver and release of claims that was interpreted by
the SEC as prohibiting the outgoing employee from filing an
application for, or accepting, a whistleblower award from the SEC.
In the second order, the cited conduct was a
