Supreme Court: Dodd-Frank Whistleblower Protection Is Narrow
U.S. Supreme Court News
The Supreme Court ruled Wednesday that whistleblower protections passed by Congress after the 2008 financial crisis only apply to people who report problems to the government, not more broadly.
The justices said that a part of the Dodd-Frank Act that protects whistleblowers from being fired, demoted or harassed only applies to people who report legal violations to the U.S. Securities and Exchange Commission. They said employees who report problems to their company's management but not the commission don't qualify.
People who report issues to their company's management are still protected against retaliation but under an older law, the 2002 Sarbanes-Oxley Act. But the two laws differ in a number of ways, including how long people have to bring a lawsuit and how much money they can get in compensation.
The justices were unanimous in agreeing that the whistleblower protection in the Dodd-Frank Act only covers people who report to the SEC. Writing for the court, Justice Ruth Bader Ginsburg said "Dodd-Frank's text and purpose leave no doubt" about who the term "whistleblower" applies to.
"The definition section of the statute supplies an unequivocal answer: A 'whistleblower' is 'any individual who provides ... information relating to a violation of the securities laws to the Commission,'" she wrote.
The SEC had interpreted the whistleblower protection in the Dodd-Frank Act more broadly, an interpretation the Supreme Court rejected.
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