Shook Partners Bill Martucci and Riley Mendoza and Associate Ashley Harrison have authored an article for Corporate Counsel Business Journal detailing how companies can create whistleblower programs that comply with the Sarbanes-Oxley Act and the Dodd-Frank Wall Street Reform and Consumer Protection Act. Whistleblower programs allow employees to report perceived ethical or legal issues to a company without fear of retaliation. The authors recommend that companies should "make their internal reporting program robust," including encouraging employees to report issues, responding to complaints promptly and investigating thoroughly.
Martucci, Mendoza and Harrison also provide suggestions for defending against lawsuits in which an employee alleges that a company retaliated against him or her. "There can be serious monetary, reputational and employee-morale costs associated with Sarbanes-Oxley and Dodd-Frank complaints," they conclude. "To help minimize unnecessary costs, it is vitally important for companies to understand the whistleblower provisions of Sarbanes-Oxley and Dodd-Frank, establish a well-managed internal reporting system and effectively defend these claims."
This article also appeared as an issue of the National Employment Perspective. Read more issues >>