On July 21, President Obama signed the Dodd Frank Act (full name: Dodd-Frank Wall Street Reform and Consumer Protection Act..phew), into law. This sweeping reform law is an attempt to curb the financial practices that helped lead up to America’s worst financial crisis since the onset of the Great Depression.
While the bulk of the act is designed to curb risky and illegal practices, the bill also contains important provisions regarding employees of these firms. Most importantly, the Dodd Frank Act creates whistle blower protections for employees who complain and raise issues with violations under this new act.
The act, which contains a section on “SEC Bounties”, which rewards individuals monetarily for new information that is provided to them that leads to or contributes to an investigation. Contained within that provision is a section that greatly expands the rights of financial and security industry whistle blowers. The Dodd Frank act builds upon the protections of the Sarbanne-Oxley act, which generally protects employees from being retaliated against in certain instances regard fraud in public traded companies, to include a new host of protections for workers bringing violations of Federal finance laws to light.
This provision is a definite win for these individuals faced between whistle blowing about these violations that can undermine the American economy. No individual should be put a position where they fear for their job for complaining about such grievous illegal conduct.