Dodd-Frank Whistleblower Protections – What Georgia Employees Need to Know
The Dodd-Frank Wall Street Reform and Consumer Protection Act gives power to employees who report illegal conduct on the part of their employers. The goal is to foster a safer environment for whistleblowers so that securities law violations don’t go unchecked, leading to potentially disastrous financial and economic outcomes. Thanks to Dodd-Frank’s protections, the reporting of suspected misconduct to the SEC is often safeguarded. However, recent changes to the law create specific requirements for employees who report misconduct in order for the protections to apply.
The law can seem complicated, and facing potential backlash from an employer can be intimidating, so it’s important to understand your legal options and how to assert your rights. If you properly reported a violation and are now facing retaliation or are simply wondering how to best move forward with a report of misconduct, you should speak to an attorney. In some cases, you might be entitled to legal remedies, potentially including double back pay, reinstatement, legal fees, and more.
Understanding the Dodd-Frank Act
The Dodd-Frank Act went into effect in 2010 following the financial collapse of 2008. The goal was to promote financial stability and to protect against fraud and economic turmoil. The law includes whistleblower provisions that offer protections and even monetary rewards for those who report violations of securities laws.
The law shares some similarities to the Sarbanes-Oxley Act (SOX), which is another law that offers whistleblowers protection from retaliation.
Supreme Court’s Dodd-Frank ruling
In Digital Realty Trust, Inc. v. Somers, the US Supreme Court held that the anti-retaliation provisions in Dodd-Frank only apply when a whistleblower reports a violation directly to the SEC. This interpretation means that whistleblowers who report a violation internally and face retaliation need to rely on a different law to protect them: SOX.
SOX requires that claimants file their complaints with the Department of Labor within 180 days of the retaliatory actions. However, Dodd-Frank gives claimants six years to bring their retaliation actions to federal court. The two laws have different potential remedies as well. SOX allows for reinstatement and back pay, while Dodd-Frank also offers double back pay and attorney’s fees.
What does Dodd-Frank protect against?
Dodd-Frank protects whistleblowers from the following potential forms of work-related retaliation:
- Termination
- Demotion
- Threats
- Suspension
- Harassment
- And other forms of retaliation
What does it mean to file a Whistleblower Complaint with the SEC?
To qualify for protection under the Dodd-Frank Act, you must engage in specific protected activities. The rules state that you must provide the Commission with information about a potential violation of federal securities laws voluntarily and in writing.
You must follow a strict process when it comes to reporting conduct and triggering Dodd-Frank protections. Here is a breakdown of the requirements:
- Voluntary: Reports must be voluntary as opposed to being compelled by a subpoena or investigation.
- Original: The reports can’t already be known to the SEC or something that has been disclosed publicly (unless the whistleblower was the original source).
- Submitted in writing: SEC’s amended rules require that only written reports to the SEC will qualify for protections under Dodd-Frank. Prompt filing is critical, even if you’ve already reported internally.
Whistleblowers can submit their information through the SEC’s Tips, Complaints, and Referrals (TCR) form. You can find detailed instructions on how to do this and a link to the form on the SEC website.
In cases where the report leads to successful enforcement action, you might qualify for a monetary award.
Georgia-specific considerations
In addition to federal whistleblower laws, there are some state-specific laws that might be relevant as well. The Georgia Whistleblower Act serves to protect public sector employees who report fraud, waste, or abuse in state or local government operations. The Georgia Taxpayer Protection False Claims Act allows individuals to report fraud against state programs. You need to seek consent from the state attorney general to file a claim under the GTPFA. It’s important to discuss the situation with an attorney to learn how all of these laws might apply.
Practical steps for potential whistleblowers
Finding yourself in a situation where you believe that your employer could be engaged in illegal conduct can be frightening. Doing the right thing could come with consequences, like losing your livelihood. And if you did report and faced retaliation, you are likely wondering what to do now. In either case, there are some steps you may take to protect yourself.
- Documentation: The first thing to do is to make sure that you keep detailed records of any suspected violations and communications. You’ll need more than your word to show what happened.
- Legal counsel: Get an attorney right away. You need to speak to someone who understands whistleblower laws and who is ready to help you assert your rights.
- Timely reporting: Don’t sit on the information. Take action right away. Your attorney can help you choose what steps to take, but if you’ve let too much time pass, your options could be limited.
Whistleblowers need the support of an experienced attorney
Dodd-Frank and related laws are in place to help employees do the right thing without facing unfair and financially ruinous consequences. They are also there to protect the rest of us from the economic harm that comes from large-scale financial fraud. However, the companies that could be facing allegations are often large and powerful, with their own teams of attorneys working to protect their rights. It’s important to have your own representation from an experienced whistleblower protection lawyer who can advocate for you and your rights. Call Buckley Bala Wilson Mew LLP or fill out our contact form today to schedule a free consultation with one of our lawyers.