Finance Reform Will Clarify Sox
May 25, 2010 | Leave a Comment
The Restoring American Financial Stability Act of 2010, passed by the Senate last week extends Sarbanes-Oxley Act of 2002 (SOX) whistleblower protections to employees of subsidiaries and affiliates of publicly-treaded companies. Section 929A. This appears to be identical to a provision in the reform legislation the House passed on Dec. 11, 2009. See Section 7607. This will make the Act consistant with a letter from Senator Patrick Leahy, author of the Sarbanes-Oxley whistleblower statute, to the Department of Labor which emphasized that federal whistleblower protection extends to employees of subsidiaries of companies and that the DOL should not interpret the statute to exclude employees working for company subsidiaries.Sarbanes-Oxley created federal whistleblower protections for employees when they disclose information about fraudulent activities within their companies. .