Adverse Action: More Expansively Construed Under SOX Than Under Title VII

In a case of first impression, the Department of Labor's Administrative Review Board (ARB) finds that the meaning of the term "adverse action" under the whistleblower protection provisions of the Sarbanes-Oxley Act (SOX) is substantially broader than the meaning of the same term under Title VII, and found that the employer's disclosure of the whistleblower's identity in violation of the employer's own confidentiality policy was an adverse action. This employee-friendly decision reflects the DOL trend towards expanding employees' workplace rights.

First, the background.

Halliburton, Inc., one of the world's largest providers of products and services to the energy industry, hired Anthony Menendez as Director of Technical Accounting Research & Training. His duties included monitoring and researching technical accounting issues and training Halliburton accountants. He reported to Halliburton's Chief Accounting Officer.