SEC Whistleblower Employment Agreement: The Basics
The Securities and Exchange Commission (SEC) encourages individuals to report possible securities violations through its whistleblower program. This program provides financial rewards to eligible individuals who voluntarily provide useful information to the agency, resulting in the recovery of monetary sanctions.
To ensure the protection of whistleblowers, the SEC has established a mandatory form of employment agreement for individuals who wish to be eligible for financial rewards through the whistleblower program. This agreement, known as the SEC Whistleblower Employment Agreement, is an essential tool to protect whistleblowers from retaliation by their employers and to ensure the confidentiality of their information.
The SEC Whistleblower Employment Agreement includes several provisions that ensure the protection of whistleblowers. Here are some of the most important ones:
1. Anti-Retaliation Provision
The SEC Whistleblower Employment Agreement contains an anti-retaliation provision that prohibits employers from retaliating against whistleblowers who report possible securities violations to the SEC. This provision protects individuals from any adverse employment action taken by their employers, including termination, demotion, and harassment.
2. Confidentiality Provision
The confidentiality provision of the SEC Whistleblower Employment Agreement ensures that the whistleblower`s identity and information remain confidential. This provision prohibits the SEC from disclosing the whistleblower`s identity or any information that could lead to the identification of the individual, except in specific circumstances, such as when the information is needed for legal proceedings.
3. Voluntary Submission Provision
To be eligible for financial rewards under the whistleblower program, the individual must have voluntarily provided the information to the SEC. The voluntary submission provision of the SEC Whistleblower Employment Agreement defines voluntary submission as information that is provided before the SEC or any other law enforcement agency initiates an inquiry or investigation into the matter.
4. Cooperation Provision
The cooperation provision of the SEC Whistleblower Employment Agreement requires the whistleblower to cooperate with the SEC throughout the investigation and any subsequent legal proceedings. This provision ensures that the whistleblower is providing accurate and complete information and that the investigation proceeds smoothly.
5. False Statement Provision
The false statement provision of the SEC Whistleblower Employment Agreement prohibits the whistleblower from providing false or misleading information to the SEC. This provision ensures that the whistleblower`s information is accurate and reliable and that the SEC does not waste resources investigating false claims.
In conclusion, the SEC Whistleblower Employment Agreement is an essential tool for protecting whistleblowers and ensuring the confidentiality of their information. If you are considering reporting possible securities violations to the SEC, you should consult with an experienced attorney to understand your rights and obligations under the whistleblower program and the SEC Whistleblower Employment Agreement.