Sarbanes-Oxley Act (SOX)

Additional HR Resources Dealing with Whistleblowers Learn the VERY serious laws protecting whistleblowers Privacy Issues Your right to know overrides employees' right to privacy-and vice versa Protection for Your Organization How a solid foundation in finance can help HR stay compliant with SOX Dos and Don'ts for Executives Leading executives hrough the critical aspects of employment law SOX and Pandemics SOX rules in the event of a "Bird Flu" or "Super Bug" outbreak When Employees Are Arrested What HR should do in the wake of Sarbanes-Oxley generated events Internal Investigations How to conduct an internal investigation the safe, smart, legal way Investigations Training Taking the stress out of HR's toughest task State Requirements What your state lawmakers have to say on this issue Federal Laws and Regulations Advanced warning of new legislation and other federal developments

The Sarbanes-Oxley Act (SOX) is a federal law that generally addresses corporate securities and compensation and also imposes harsh consequences, including fines and imprisonment, on publicly traded companies that retaliate against whistleblowers. That provision of the Act appears to include employees' complaints to the U.S. Department of Labor (DOL), the Occupational Safety and Health Administration (OSHA), the Equal Employment Opportunity Commission (EEOC), the U.S. Citizenship and Immigration Services (USCIS), and the National Labor Relations Board (NLRB).

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Civil penalties under SOX include reinstating the whistleblowing employee to the same position with the same seniority status, back pay with interest, and compensatory damages, including attorneys' fees and costs.

The Act also provides for criminal penalties for individuals who knowingly retaliate against whistleblowers who have provided any truthful information to a law enforcement officer relating to the commission (or possible commission) of a federal offense.

Individuals who violate that provision may be subjected to fines and imprisonment of up to 10 years. Significantly, those criminal penalties aren't limited to publicly traded companies but, rather, apply to all individuals and employers.

Given the potential consequences to supervisors in their individual capacities and you as an employer, you must instruct your supervisors to report to HR any complaints regarding criminal or fraudulent activity. They also should be instructed to report any incidents they have observed personally. That includes violations of your business policies, ethical standards, accounting practices, and codes of corporate conduct.

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• When Employees Blow the Whistle
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HR Tools for Sarbanes-Oxley Act

• Sample Policy - Equal Employment
• Sample Policy - Harassment and/or Discrimination