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New OSHA Rules Broaden Sarbanes-Oxley Whistleblower Protections
Practical Law Legal Update 3-511-0148 (Approx. 3 pages)
New OSHA Rules Broaden Sarbanes-Oxley Whistleblower Protections
by PLC Labor & Employment
| Published on 07 Nov 2011 • USA (National/Federal) |
On November 3, 2011, the Department of Labor's Occupational Safety and Health Administration (OSHA) issued interim final rules that, among other things, increase employees' options for filing complaints under the whistleblower provisions of the Sarbanes-Oxley Act (SOX) and clarify that SOX covers subsidiaries of publicly traded companies.
On November 3, 2011, the Department of Labor's Occupational Safety and Health Administration (OSHA) issued interim final rules amending whistleblower regulations under the Sarbanes-Oxley Act of 2002 (SOX). The rules revise the procedures for handling whistleblower complaints and implement statutory changes to SOX made by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank Act), that widened the scope of whistleblower protections. The rule also makes a number of non-substantive changes to terminology to create consistency with the procedural rules of other whistleblower statutes.
Among the changes made by the rule is an expansion of employees' options for filing complaints. Under the interim final rule, complaints may now be filed:
- Orally.
- In any language.
- By any person, with the employee's consent.
Additionally, the rule implements changes mandated by Dodd-Frank Act to the whistleblower provisions of SOX, including:
- An extension of the statute of limitation for filing retaliation claims from 90 to 180 days.
- Provisions clarifying that nationally recognized statistical rating organizations and subsidiaries of publicly traded companies are covered employers under SOX.
The rule also expands mandated sharing of information between the complainant and respondent during the investigation, including a new requirement that the complainant receive copies of all of the respondent's submissions to the agency that are responsive to the complainant's whistleblower complaint.
The interim final rule is effective as of November 3, 2011. OSHA has requested comments which must be submitted by January 3, 2012.
For more information on the whistleblower provisions of SOX as modified in 2010 by the Dodd-Frank Act, see Practice Note, Whistleblower Protections under Sarbanes-Oxley and the Dodd-Frank Act.