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Sarbanes-Oxley Act of 2002
Corporate and Criminal Fraud Accountability Act (CCFA)
Public Law 107-204, July 30, 2002
18 USC Section 1514A
SEC. 806. PROTECTION FOR EMPLOYEES OF PUBLICLY
TRADED COMPANIES WHO PROVIDE EVIDENCE OF FRAUD.
(a) IN GENERAL.--Chapter 73 of title 18, United States Code, is
amended by inserting after section 1514 the following:
§1514A. Civil action to protect
against retaliation in fraud cases
(a) WHISTLEBLOWER PROTECTION FOR EMPLOYEES OF
PUBLICLY TRADED COMPANIES.--No company with a class of securities
registered under section 12 of the Securities Exchange Act of
1934 (15 U.S.C. 781), or that is required to file reports under
section 15(d) of the Securities Exchange Act of 1934 (15 U.S.C.
780(d)), or any officer, employee, contractor, subcontractor, or
agent of such company, may discharge, demote, suspend, threaten,
harass, or in any other manner discriminate against an employee
in the terms and conditions of employment because of any lawful
act done by the employee--
(1) to provide information, cause information to be
provided, or otherwise assist in an investigation regarding any
conduct which the employee reasonably believes constitutes a
violation of section 1341, 1343, 1344, or 1348, any rule or
regulation of the Securities and Exchange Commission, or any
provision of Federal law relating to fraud against shareholders,
when the information or assistance is provided to or the
investigation is conducted by--
(A) a Federal regulatory or law enforcement
agency;
(B) any Member of Congress or any committee of Congress; or
(C) a person with supervisory authority over the employee (or
such other person working for the employer who has the authority
to investigate, discover, or terminate misconduct);
or
(2) to file, cause to be filed, testify, participate in, or
otherwise assist in a proceeding filed or about to be filed (with
any knowledge of the employer) relating to an alleged violation
of section 1341, 1343, 1344, or 1348, any rule or regulation of
the Securities and Exchange Commission, or any provision of
Federal law relating to fraud against shareholders.
(b) ENFORCEMENT ACTION.--
(1) IN GENERAL.--A person who alleges discharge or
other discrimination by any person in violation of subsection (a)
may seek relief under subsection (c), by--
(A) filing a complaint with the Secretary of Labor;
or
(B) if the Secretary has not issued a final decision within 180
days of the filing of the complaint and there is no showing that
such delay is due to the bad faith of the claimant, bringing an
action at law or equity for de novo review in the appropriate
district court of the United States, which shall have
jurisdiction over such an action without regard to the amount in
controversy.
(2) PROCEDURE.--
(A) IN GENERAL.--An action under paragraph (1)(A)
shall be governed under the rules and procedures set forth in
section 42121(b) of title 49, United States Code.
(B) EXCEPTION.--Notification made under section 42121(b)(1) of
title 49, United States Code, shall be made to the person named
in the complaint and to the employer.
(C) BURDENS OF PROOF.--An action brought under paragraph (1)(B)
shall be governed by the legal burdens of proof set forth in
section 42121(b) of title 49, United States Code.
(D) STATUTE OF LIMITATIONS.--An action under paragraph (1) shall
be commenced not later than 90 days after the date on which the
violation occurs.
(c) REMEDIES.--
(1) IN GENERAL.--An employee prevailing in any action
under subsection (b)(1) shall be entitled to all relief necessary
to make the employee whole.
(2) COMPENSATORY DAMAGES.--Relief for any action under paragraph
(1) shall include--
(A) reinstatement with the same seniority status that
the employee would have had, but for the discrimination;
(B) the amount of back pay, with interest; and
(C) compensation for any special damages sustained as a result
of the discrimination, including litigation costs, expert witness
fees, and reasonable attorney fees.
(D) RIGHTS RETAINED BY EMPLOYEE.--Nothing in this section shall
be deemed to diminish the rights, privileges, or remedies of any
employee under any Federal or State law, or under any collective
bargaining agreement.
(b) CLERICAL AMENDMENT.--The table of sections at the beginning
of chapter 73 of title 18, United States Code, is amended by
inserting after the item relating to section 1514 the following
new item:
1514A. Civil action to protect against retaliation in
fraud cases.
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