The House Financial Services Committee recently passed new legislation that would add protections to whistleblowers from employer retaliation, along with legislation that also creates a clear definition of what is considered insider trading according to U.S. securities laws.
The new Whistleblower Protection Reform Act (H.R. 2515) received unanimous support and slightly amends the definition of a whistleblower under the Securities and Exchange Act of 1934. It clarifies that whistleblowers who report instances of alleged misconduct internally (but not to the Securities and Exchange Commission) should still receive protections under the anti-retaliation provisions of the Dodd-Frank Act.
A golden age of whistleblower protections
While there is still risk associated with serving as a whistleblower, there has never been a time in American history when whistleblowers have received greater state and federal protections from retaliation. This latest legislation reflects the fact that even in an era of extreme partisanship, there is still a united front in the federal government when it comes to protecting corporate whistleblowers from retaliation, which can take the forms of termination, demotion, lack of promotion and other forms of punishments.
In addition to this legislation, the House committee also passed H.R. 2534, the Insider Trading Prohibition Act. The measure creates a clearer federal standard for what constitutes insider trading. It’s a bill that will also be important for whistleblowers, as insider trading is often revealed as a result of whistleblower reports.
Now, would-be whistleblowers can have a clearer understanding of what is and is not considered to be insider trading before they make their reports through the proper channels.
For more information on these new bills and the available whistleblower retaliation protections afforded under federal law, work with an skilled attorney at Kardell Law Group.