§1831j — Title 12 Banks and Banking | U.S. Code

Summary

Protects workers at insured banks from being fired or treated unfairly for telling a federal bank regulator or the Attorney General about possible law-breaking, serious mismanagement or waste, abuse of power, or a clear danger to public health or safety. The rule stops banks, federal banking agencies, Federal Home Loan Banks, Federal Reserve Banks, and people or companies doing work for the Corporation from punishing employees for those reports. It also protects reports about a bank, its leaders or staff, the agency that employs the worker, or the worker’s own employer. A worker who says they were punished can sue in U.S. district court within 2 years and must send a copy of the complaint to the right federal banking agency. The court can order the worker put back, award money for losses, or require other fixes. The rule does not protect someone who helped cause the problem or who gave knowing or reckless false information. The proof standards in subchapter III of chapter 12 of title 5 apply.

Title 12, §1831j

Banks and Banking — Source: USLM XML via OLRC

(a)(1)No insured depository institution may discharge or otherwise discriminate against any employee with respect to compensation, terms, conditions, or privileges of employment because the employee (or any person acting pursuant to the request of the employee) provided information to any Federal banking agency or to the Attorney General regarding—

(A)a possible violation of any law or regulation; or

(B)gross mismanagement, a gross waste of funds, an abuse of authority, or a substantial and specific danger to public health or safety;

(2)No Federal banking agency, Federal home loan bank, Federal reserve bank, or any person who is performing, directly or indirectly, any function or service on behalf of the Corporation may discharge or otherwise discriminate against any employee with respect to compensation, terms, conditions, or privileges of employment because the employee (or any person acting pursuant to the request of the employee) provided information to any such agency or bank or to the Attorney General regarding any possible violation of any law or regulation, gross mismanagement, a gross waste of funds, an abuse of authority, or a substantial and specific danger to public health or safety by—

(A)any depository institution or any such bank or agency;

(B)any director, officer, or employee of any depository institution or any such bank;

(C)any officer or employee of the agency which employs such employee; or

(D)the person, or any officer or employee of the person, who employs such employee.

(b)Any employee or former employee who believes he has been discharged or discriminated against in violation of subsection (a) may file a civil action in the appropriate United States district court before the close of the 2-year period beginning on the date of such discharge or discrimination. The complainant shall also file a copy of the complaint initiating such action with the appropriate Federal banking agency.

(c)If the district court determines that a violation of subsection (a) has occurred, it may order the depository institution, Federal home loan bank, Federal Reserve bank, or Federal banking agency which committed the violation—

(1)to reinstate the employee to his former position;

(2)to pay compensatory damages; or

(3)take other appropriate actions to remedy any past discrimination.

(d)The protections of this section shall not apply to any employee who—

(1)deliberately causes or participates in the alleged violation of law or regulation; or

(2)knowingly or recklessly provides substantially false information to such an agency or the Attorney General.

(e)For purposes of subsections (a) and (c), the term “Federal banking agency” means the Corporation, the Board of Governors of the Federal Reserve System, the Federal Housing Finance Agency and the Comptroller of the Currency.

(f)The legal burdens of proof that prevail under subchapter III of chapter 12 of title 5 shall govern adjudication of protected activities under this section.

Notes & Related Subsidiaries

Editorial Notes

Amendments

2010—Subsec. (e). Pub. L. 111–203 substituted “Federal Housing Finance Agency and the Comptroller of the Currency” for “Federal Housing Finance Board, the Comptroller of the Currency, and the Director of the Office of Thrift Supervision”. 1994—Subsec. (a). Pub. L. 103–325, § 602(c), amended directory language of Pub. L. 103–204, § 21(a). See 1993 Amendment note below. Subsec. (c)(1). Pub. L. 103–325, § 602(a)(61), substituted semicolon for comma at end. Subsec. (f). Pub. L. 103–325, § 602(c)(1)–(3), amended directory language of Pub. L. 103–204, § 21(a)(1)(B). See 1993 Amendment note below. 1993—Subsec. (a)(1). Pub. L. 103–204, § 21(a)(1)(A), as amended by Pub. L. 103–325, § 602(c)(1)–(3), substituted “regarding— “(A) a possible violation of any law or regulation; or “(B) gross mismanagement, a gross waste of funds, an abuse of authority, or a substantial and specific danger to public health or safety; by the depository institution or any director, officer, or employee of the institution.” for “regarding any possible violation of any law or regulation by the depository institution or any director, officer, or employee of the institution.” Subsec. (a)(2). Pub. L. 103–204, § 21(a)(2)(A), (B), as amended by Pub. L. 103–325, § 602(c)(1), (2), (4), in introductory provisions, substituted “Federal reserve bank, or any person who is performing, directly or indirectly, any function or service on behalf of the Corporation” for “or Federal Reserve bank” and “any possible violation of any law or regulation, gross mismanagement, a gross waste of funds, an abuse of authority, or a substantial and specific danger to public health or safety by” for “any possible violation of any law or regulation by”. Subsec. (a)(2)(D). Pub. L. 103–204, § 21(a)(2)(C)–(E), as amended by Pub. L. 103–325, § 602(c)(1), (2), (4), added subpar. (D). Subsec. (f). Pub. L. 103–204, § 21(a)(1)(B), as amended by Pub. L. 103–325, § 602(c)(1)–(3), added subsec. (f). 1991—Subsec. (a). Pub. L. 102–242, § 251(a)(1), amended subsec. (a) generally. Prior to amendment, subsec. (a) read as follows: “No federally insured depository institution may discharge or otherwise discriminate against any employee with respect to compensation, terms, conditions, or privileges of employment because the employee (or any person acting pursuant to the request of the employee) provided information to any Federal banking agency or to the Attorney General regarding a possible violation of any law or regulation by the depository institution or any of its officers, directors, or employees.” Subsec. (c). Pub. L. 102–242, § 251(a)(2), inserted “, Federal home loan bank, Federal Reserve bank, or Federal banking agency”. Subsec. (e). Pub. L. 102–242, § 251(a)(3), added subsec. (e).

Statutory Notes and Related Subsidiaries

Effective Date

of 2010 AmendmentAmendment by Pub. L. 111–203 effective on the transfer date, see section 351 of Pub. L. 111–203, set out as a note under section 906 of Title 2, The Congress.

Effective Date

of 1991 Amendment Pub. L. 102–242, title II, § 251(a)(4), Dec. 19, 1991, 105 Stat. 2332, provided that: “Paragraph (2) of section 33(a) of the Federal Deposit Insurance Act [12 U.S.C. 1831j(a)(2)] (as added under the amendment made by paragraph (1)) shall be treated as having taken effect on January 1, 1987, and for purposes of any cause of action arising under such paragraph (as so effective) before the date of the enactment of this Act [Dec. 19, 1991], the 2-year period referred to in section 33(b) of such Act shall be deemed to begin on such date of enactment.”

§1831j Depository institution employee protection remedy

Summary

Title 12, §1831j

Notes & Related Subsidiaries

Editorial Notes

Amendments

Statutory Notes and Related Subsidiaries

Effective Date

Effective Date

Citations & Metadata