The Sarbanes-Oxley Act of 2002 is named for its chief sponsors, Sen. Paul Sarbanes (D-MD) and Rep. Michael Oxley (R-OH). The bill, known colloquially as SOX or Sarbox, was created to combat the loss of confidence in the securities and financial markets after accounting scandals plagued “too big to fail” corporate entities such as Enron and Tyco International. SOX seeks to protect consumers by enlarging the scope of corporate governance on companies in the financial sector.
SOX includes eleven different provisions or “titles.”
With the passage of the Dodd-Frank Wall Street Reform and Consumer Protection Act in 2010, Sarbanes-Oxley was amended to include “whistleblower” protections, specifically dealing with issues presented in titles VII, IX, X, and XI.
An employee in the financial sector can now report securities fraud without fear of reprisal from his employer, the employer’s partners and any other entities contracted with the employer. An employer cannot subject a whistleblower to unfavorable employment actions under penalty of law.
These actions, as defined by SOX are:
- Firing or laying off
- Denial of overtime or promotion
- Disciplinary actions
- Denial of benefits
- Failure to hire or rehire
- Making of threats
- Reassignment affecting prospects for promotion
- Reduction of pay or hours
If you work in the financial sector and either have reported your employer for a violation and feel you’ve been subjected to retaliatory action, or you are planning on reporting a violation, talk to the lawyers at Bochetto & Lentz, PC.
We have experienced Sarbanes-Oxley lawyers on staff, ready to assist you. Don’t try to navigate these waters alone. Call us today!