Whistleblower Protection Policy

by Beverly Shearer

Overview

In the past, whistleblowers--people who report wrongdoing--often met with reprisals, including demotions and firings. The Department of Labor and the federal government in general have established policies to protect workers who report health and safety violations, abuse and fraud.
Whistleblower Policies

The three main protection policies that have been implemented are the Sarbanes-Oxley Act, the Department of Labor's Whistleblower Protection Program and the Whistleblower Protection Act of 1989.

Who Is Protected?

People who work for the federal government are protected by the Whistleblower Protection Act of 1989. The Whistleblower Protection Program is enforced by the Occupational Health and Safety Administration and protects whistleblowers who report unsafe or unhealthy workplaces. The Sarbanes-Oxley Act prevents reprisals against people who expose fraud and cover-ups in the corporate sector.
Illegal Reprisals

Whistleblower protection policies make it illegal to impose sanctions against employees. These sanctions or reprisals can include firings, demotions, undue discipline, intimidation, pay reductions and benefits denial.
Fines and Prison Time

According to Section 1107 of the Sarbanes-Oxley Act, deliberate retaliation against a whistleblower is a federal crime. If convicted of retaliation, an employer can be fined and face prison terms of up to 10 years.
Corporate Whistleblowers

Legislation protecting corporate whistleblowers was strengthened after the Enron and WorldCom financial scandals. Employees who reported fraud and accounting errors faced reprisals before the scandals became public knowledge. The Sarbanes-Oxley Act is meant to protect shareholders and the public from businesses that engage in illegal and fraudulent accounting practices.