Complying With the SOX Whistleblower Provisions

"The governance reforms mandated by the Sarbanes-Oxley Act of 2002 have garnered a lot of media coverage in the wake of on-going corporate scandals. However, not as much attention has been paid to the Act�s whistleblower provisions, which prohibit companies from retaliating against employees when they report fraudulent activities. In addition to civil penalties that are applicable to publicly traded companies, the Act created a new crime, punishable by fines and up to 10 years in prison, for retaliating against employees who report any potential federal crime to law enforcement officials. The criminal whistleblower provision of Sarbanes-Oxley applies to private as well as publicly traded employers. So while private companies might consider themselves exempt from the Sarbanes-Oxley Act, they aren�t completely off the hook. Private companies that implement procedures for reporting and handling whistleblower complaints about company wrongdoing are ahead of the game in terms of building employee morale and reducing legal risks.

What Can You Do to Protect Your Company?

To start, your company should establish a firm no-retaliation policy for employees who report suspected wrongdoing..."

Read more in this article from NFIB.