New Whistleblower Provisions in the Dodd-Frank Act
The recently signed Dodd-Frank Wall Street Reform and Consumer Protection Act provides substantial monetary rewards to whistleblowers who take action against corporate fraud and provides strong protection against retaliation, guarantees confidentiality and includes job security provisions. The bill covers whistleblowers who report a variety of securities violations including insider trading, money laundering and violations of the Foreign Corrupt Practices Act (an anti-bribery law).
Under the new legislation, the Securities Exchange Commission (SEC) and Commodities Futures Trading Commission (CFTC) will offer whistleblowers 10 to 30 percent of any amount the government collects when the total exceeds $1 million. The law requires the SEC to protect the confidentiality of whistleblowers, and a whistleblower may remain anonymous until an award is paid. Moreover, employers may not fire, demote, suspend, threaten, harass, or discriminate against a whistleblower for providing information to the SEC, and whistleblowers may sue for reinstatement, back pay and other damages if they experience such retaliation from their employers.