§1514A — Title 18 Crimes and Criminal Procedure | U.S. Code

Summary

Protects workers at public companies (those that must register or file reports with the SEC), their covered subsidiaries and affiliates, and certain credit rating agencies, plus officers, employees, contractors, subcontractors, or agents. Employers must not fire, demote, suspend, threaten, harass, or otherwise punish an employee for reporting or helping investigate conduct the employee reasonably thinks violates certain federal fraud laws (18 U.S.C. 1341, 1343, 1344, 1348), SEC rules, or laws about fraud on shareholders. The law covers giving information to a federal agency, Congress, or a supervisor, and taking part in related proceedings. An employee who faces retaliation can file a complaint with the Secretary of Labor. If the Secretary has not decided in 180 days and the delay is not the employee’s fault, the employee can go to federal court for a new review. Claims must start within 180 days of the violation or when the employee learned of it. If the employee wins, remedies include reinstatement with the same seniority, back pay with interest, and payment for damages and legal costs. These rights cannot be waived, and pre-dispute arbitration agreements that force arbitration of these claims are not valid.

Title 18, §1514A

Crimes and Criminal Procedure — Source: USLM XML via OLRC

(a)No company with a class of securities registered under section 12 of the Securities Exchange Act of 1934 (15 U.S.C. 78l), or that is required to file reports under section 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78o(d)) including any subsidiary or affiliate whose financial information is included in the consolidated financial statements of such company, or nationally recognized statistical rating organization (as defined in section 3(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78c),11 So in original. Another closing parenthesis probably should precede the comma. or any officer, employee, contractor, subcontractor, or agent of such company or nationally recognized statistical rating organization, may discharge, demote, suspend, threaten, harass, or in any other manner discriminate against an employee in the terms and conditions of employment because of any lawful act done by the employee—

(1)to provide information, cause information to be provided, or otherwise assist in an investigation regarding any conduct which the employee reasonably believes constitutes a violation of section 1341, 1343, 1344, or 1348, any rule or regulation of the Securities and Exchange Commission, or any provision of Federal law relating to fraud against shareholders, when the information or assistance is provided to or the investigation is conducted by—

(A)a Federal regulatory or law enforcement agency;

(B)any Member of Congress or any committee of Congress; or

(C)a person with supervisory authority over the employee (or such other person working for the employer who has the authority to investigate, discover, or terminate misconduct); or

(2)to file, cause to be filed, testify, participate in, or otherwise assist in a proceeding filed or about to be filed (with any knowledge of the employer) relating to an alleged violation of section 1341, 1343, 1344, or 1348, any rule or regulation of the Securities and Exchange Commission, or any provision of Federal law relating to fraud against shareholders.

(b)(1)A person who alleges discharge or other discrimination by any person in violation of subsection (a) may seek relief under subsection (c), by—

(A)filing a complaint with the Secretary of Labor; or

(B)if the Secretary has not issued a final decision within 180 days of the filing of the complaint and there is no showing that such delay is due to the bad faith of the claimant, bringing an action at law or equity for de novo review in the appropriate district court of the United States, which shall have jurisdiction over such an action without regard to the amount in controversy.

(2)(A)An action under paragraph (1)(A) shall be governed under the rules and procedures set forth in section 42121(b) of title 49, United States Code.

(B)Notification made under section 42121(b)(1) of title 49, United States Code, shall be made to the person named in the complaint and to the employer.

(C)An action brought under paragraph (1)(B) shall be governed by the legal burdens of proof set forth in section 42121(b) of title 49, United States Code.

(D)An action under paragraph (1) shall be commenced not later than 180 days after the date on which the violation occurs, or after the date on which the employee became aware of the violation.

(E)A party to an action brought under paragraph (1)(B) shall be entitled to trial by jury.

(c)(1)An employee prevailing in any action under subsection (b)(1) shall be entitled to all relief necessary to make the employee whole.

(2)Relief for any action under paragraph (1) shall include—

(A)reinstatement with the same seniority status that the employee would have had, but for the discrimination;

(B)the amount of back pay, with interest; and

(C)compensation for any special damages sustained as a result of the discrimination, including litigation costs, expert witness fees, and reasonable attorney fees.

(d)Nothing in this section shall be deemed to diminish the rights, privileges, or remedies of any employee under any Federal or State law, or under any collective bargaining agreement.

(e)(1)The rights and remedies provided for in this section may not be waived by any agreement, policy form, or condition of employment, including by a predispute arbitration agreement.

(2)No predispute arbitration agreement shall be valid or enforceable, if the agreement requires arbitration of a dispute arising under this section.

Notes & Related Subsidiaries

Editorial Notes

Amendments

2010—Subsec. (a). Pub. L. 111–203, § 929A, in introductory provisions, inserted “including any subsidiary or affiliate whose financial information is included in the consolidated financial statements of such company” after “the Securities Exchange Act of 1934 (15 U.S.C. 78o(d))”. Pub. L. 111–203, § 922(b), in introductory provisions, inserted “or nationally recognized statistical rating organization (as defined in section 3(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78c),” before “or any officer,” and “or nationally recognized statistical rating organization” before “, may discharge,”. Subsec. (b)(2)(D). Pub. L. 111–203, § 922(c)(1)(A), substituted “180” for “90” and inserted “, or after the date on which the employee became aware of the violation” before period at end. Subsec. (b)(2)(E). Pub. L. 111–203, § 922(c)(1)(B), added subpar. (E). Subsec. (e). Pub. L. 111–203, § 922(c)(2), added subsec. (e).

Statutory Notes and Related Subsidiaries

Effective Date

of 2010 AmendmentAmendment by Pub. L. 111–203 effective 1 day after July 21, 2010, except as otherwise provided, see section 4 of Pub. L. 111–203, set out as an

Effective Date

note under section 5301 of Title 12, Banks and Banking.

§1514A Civil Action to Protect Against Retaliation in Fraud Cases

Summary

Title 18, §1514A

Notes & Related Subsidiaries

Editorial Notes

Amendments

Statutory Notes and Related Subsidiaries

Effective Date

Effective Date

Citations & Metadata