Assess whether a disclosure may qualify for federal whistleblower protection

Key facts

Human involvement

Red · Lawyer-led

How AI is used

Extract who made the disclosure, who received it, the conduct described in the person's own words, the employer's status as the lawyer records it, and the dates stated on the papers. Do not decide that the disclosure is protected, that an award is payable, or that a claim is in time.

What the lawyer must review

18 U.S.C. § 1514A applies to a company with a class of securities registered under section 12 of the Securities Exchange Act, or required to file reports under section 15(d), including a subsidiary or affiliate whose financial information is included in the consolidated financial statements of such a company, and to a nationally recognized statistical rating organization, and to any officer, employee, contractor, subcontractor, or agent of such a company or organization. They may not discharge, demote, suspend, threaten, harass, or otherwise discriminate in the terms and conditions of employment because of a lawful act to provide information, or to assist in an investigation, regarding conduct the employee reasonably believes is a violation of 18 U.S.C. § 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 a federal regulatory or law-enforcement agency, a Member or committee of Congress, or a person with supervisory authority over the employee or another person working for the employer who has authority to investigate, discover, or terminate misconduct. A person may file a complaint with the Secretary of Labor. If the Secretary has not issued a final decision within 180 days and the delay is not due to the claimant's bad faith, the person may sue in the appropriate district court. An action under that paragraph shall be commenced not later than 180 days after the violation, or after the employee became aware of the violation. 15 U.S.C. § 78u-6 defines a whistleblower as any individual, or two or more individuals acting jointly, who provides information relating to a violation of the securities laws to the Commission in a manner the Commission establishes by rule. A covered action is a judicial or administrative action brought by the Commission under the securities laws that results in monetary sanctions exceeding $1,000,000. Where an award is payable, the statute states a total of not less than 10 percent and not more than 30 percent of what has been collected, subject to the rest of the section, including exclusions the lawyer must read. Section 78u-6(h) provides that no employer may discharge, demote, suspend, threaten, harass, directly or indirectly, or otherwise discriminate against a whistleblower because of a lawful act in providing information to the Commission in accordance with the section, in assisting a Commission investigation or action based on that information, or in making disclosures required or protected under the Sarbanes-Oxley Act, the Exchange Act including section 78j-1(m), 18 U.S.C. § 1513(e), and any other law, rule, or regulation subject to the Commission's jurisdiction. An action under subsection (h) may not be brought more than 6 years after the violation, or more than 3 years after the date when facts material to the right of action are known or reasonably should have been known, and may not in any circumstance be brought more than 10 years after the violation. The tool states none of these periods as the deadline in a particular matter.

Written for / version

United States versionUS