The Department of Labor's Administrative Review Board
("ARB") recently upheld an order finding a semiconductor
company had constructively discharged a manager who complained the
company's bonus plan violated state wage and hour laws, and in
doing so, broadly interpreted the protections offered under the
Sarbanes-Oxley Act ("SOX" or "Act").
In
Dietz v. Cypress Semiconductor Corp., the
company hired the complainant as a program manager after acquiring
his former employer. Cypress required certain
employees to participate in its "Design Bonus Plan," and
although the complainant was never subject to the bonus plan, many
of his direct reports were. Under the bonus plan, Cypress
deducted 10% from the participants' salaries and at the end of
each quarter, and it would calculate each employee's
"bonus" based on the employee's team's
performance. However, some employees ultimately received less
than what they had contributed. Further, employees who left
Cypress before
