Final Dodd-Frank Rules Confirm Whistleblower Protections

On May 25, 2011, the SEC issued final rules (http://tinyurl.com/42xxwqm) to clarify certain whistleblower provisions in the Dodd-Frank Wall Street Reform and Consumer Protection Act (http://tinyurl.com/3kxwrnl). The key feature of the Act, enacted in July 2010, was to create a bounty or reward program that was designed to dramatically increase the number and quality of tips reported to the SEC about possible securities law violations. The Act also included protections for employees against retaliation for reporting information to the SEC. For example, the Act permits an employee to sue in court, rather than to pursue relief before the Department of Labor, and the suit can be filed up to six or, in some circumstances, 10 years later. Relief also can include double back pay. The SEC also reserved authority to address retaliation claims. Much like the whistleblower protections incorporated into other federal statutes in recent years, Dodd-Frank is expected to lead to a