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What rights do employees have against retaliation in fraud cases?

As a previous post for this blog highlighted, employees have rights against retaliation when they are a whistleblower in Minnesota and other states in the nation. Whistleblower rights exist in order to protect an employee when and if they make a claim that their employer is violating a state or federal law. This could happen in various types of work environments and violations could come in different forms, which is why there are several whistleblower protection laws.

What rights do employees have against retaliation in fraud cases? According to the federal Sarbanes Oxley Act, there are whistleblower protections for employees of publicly traded companies. Specifically, they have the right to file a civil action to seek relief from retaliation by an employer in a fraud case.

This section of the U.S. Code explains that no company registered under a certain federal securities regulation law may take certain negative actions against an employee on the basis of a lawful action by an employee such as providing informing or assisting with the investigation of a violation.

If an employee is retaliated against, they may seek relief under this section of the U.S. Code. They could file a complaint with the Department of Labor or bring a lawsuit to the appropriate district court of the United States if the department has not issued a final decision within 180 days of the filing of the complaint. This complaint or legal action could result in compensatory damages such as reinstatement, back pay with interest, litigation costs and other special damages arising out of the claim.

Employees who believe that they are being retaliated against for being a whistleblower should understand their legal rights and remedies. In some cases, the situation could be complex. Legal guidance could help them navigate the process and protect their rights.

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