News & Analysis as of

Severance Agreements Whistleblowers Confidentiality Agreements

Kilpatrick

Important Legal Development: Illinois Severance Agreements

Kilpatrick on

Illinois employers should promptly review their employment and separation agreements to ensure compliance with recent amendments to the Illinois Workplace Transparency Act (the “Act”)....more

Husch Blackwell LLP

Thought Leadership SEC Charges Public Companies with Violations of Whistleblower Protection Rule

Husch Blackwell LLP on

On September 9, 2024, the Securities and Exchange Commission (SEC) announced settlements with seven public companies for using employment, separation, and other agreements that violated rules prohibiting actions to impede...more

Perkins Coie

Whistleblower Protection Remains SEC Priority

Perkins Coie on

Last week, the SEC announced settled charges against seven public companies for use of agreements that the SEC alleges have provisions that violate the whistleblower protection rule. Coincidentally, I recently recorded a...more

BakerHostetler

Employers Beware: Broad Confidentiality and Severance Clauses May Violate Whistleblower Protection Laws

BakerHostetler on

Employers should check their confidentiality and severance agreements for a common oversight that, for some, is becoming a costly error. Recent enforcement activity by the Securities and Exchange Commission (SEC) of Rule...more

Akerman LLP - HR Defense

Jingle All the Way to the SEC: Employers (Even Privately Held) Under Scrutiny for Language in Separation Agreements Impeding SEC...

While jingle bells have only just begun to ring, the U.S. Securities and Exchange Commission (SEC) enforcement bells have been ringing steadily throughout year. In recent months, the SEC announced significant settlements with...more

Womble Bond Dickinson

Recent Whistleblower Enforcement Actions Highlight SEC Focus On Employee Agreements

Womble Bond Dickinson on

In September, the U.S. Securities and Exchange Commission (the “SEC”) announced the settlement of three enforcement actions for violations of SEC whistleblower protection laws. In the actions, the SEC asserted that the...more

Freiberger Haber LLP

Enforcement News: SEC Charges Investment Advisor With Violating Whistleblower Protection Rule

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We have often written about the SEC’s whistleblower program and, in particular, the success of the program with respect to detecting and preventing violations of the federal securities laws. The success of the program...more

Holland & Hart - Employers' Lawyers

SEC Settlement A Reminder for Employers: Review Your Separation Agreements

by Mark Wiletsky Mark Wiletsky Companies routinely use separation agreements with departing employees.  Through those agreements, the employee receives some type of separation benefit (typically a payment or severance), and...more

Saul Ewing LLP

What Contract? Despite Confidentiality Agreement, Employee Can Use Confidential Information in Public Whistleblower Lawsuit

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A federal court recently ruled that an employee may use his employer’s confidential information in a whistleblower retaliation complaint, regardless of whether an employment confidentiality agreement prohibited him from doing...more

Hinshaw & Culbertson LLP

SEC Charges More Public Companies for Confidentiality Agreements That Might Deter Whistleblowers

In the past two years, the SEC has charged six public companies with violating SEC Rule 21F-17, which prohibits confidentiality agreements that could impede employees from making whistleblower claims directly to the SEC....more

Morrison & Foerster LLP

Employment Law Commentary - Volume 29, Issue 1

The Cost Of Keeping Things Quiet: Crackdown On Confidentiality Clauses Calls For Explicit Carve-Outs - In last February’s Employment Law Commentary, we discussed best practices for drafting separation agreements. Among...more

Pillsbury Winthrop Shaw Pittman LLP

SEC Continues Crackdown on Employer Whistleblower Restrictions

Takeaways: - SEC is targeting contract terms that appear to restrict contact with the SEC or require employee whistleblowers to waive monetary recoveries. - Express disclosure of these rights in severance...more

Perkins Coie

Recent Whistleblower Protection Actions by SEC and Congress Add Risk to Severance Agreements

Perkins Coie on

Two recent SEC enforcement actions that describe how severance agreements may violate whistleblower protections under the federal securities laws if not properly drafted were the subject of a recent article by Perkins Coie...more

Stinson LLP

Emerging Trends Newsletter - Q3

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We are thrilled to bring you the third installment of Stinson Leonard Street's Emerging Trends newsletter. We are proud of the depth and breadth of experience and knowledge across our firm's 13 offices nationwide and are...more

Stinson - Corporate & Securities Law Blog

OSHA Addresses Sarbanes-Oxley Whistleblower Releases

We have written about SEC enforcement actions related to severance and confidentiality agreements that restrict reporting matters to the SEC. OSHA has also issued guidance regarding settlement agreements with whistleblowers...more

Littler

OSHA Joins the SEC in Attacking Confidentiality and Other Provisions in Private Settlement Agreements

Littler on

On September 15, 2016, the federal Occupational Safety and Health Administration (OSHA) released new policy guidelines for its review of private settlement agreements presented to the agency for approval in whistleblowing...more

Polsinelli

SEC Takes Aim at Anti-Whistleblower Employment Agreements

Polsinelli on

On Aug. 15, the U.S. Securities and Exchange Commission issued its second fine in six days to an employer for drafting severance agreements that restricted former employees from collecting awards as whistleblowers. The fines...more

Stinson - Corporate & Securities Law Blog

Recent SEC Enforcement Actions Prompt Consideration of Whistleblower Carve-outs

The recent settlement of SEC enforcement actions concerning the Dodd Frank Act’s whistleblower provisions are prompting companies and their counsels to evaluate current and prospective severance and confidentiality agreements...more

Blank Rome LLP

Time to Review Your Severance Agreements

Blank Rome LLP on

In August 2016, the SEC issued cease-and-desist orders against two different companies for using severance agreements which required exiting employees to waive their ability to obtain monetary awards under the SEC’s...more

Goodwin

Update: Another SEC Enforcement Action on Whistleblower Waivers and Releases

Goodwin on

Summary - Earlier this month, the U.S. Securities and Exchange Commission (SEC) announced its second significant enforcement action against an employer based on confidentiality and release provisions that the SEC asserts...more

Seyfarth Shaw LLP

SEC Targets Employment Agreements Requiring Waiver of Whistleblower Awards

Seyfarth Shaw LLP on

The SEC’s Office of the Whistleblower continues to examine employee severance, settlement and confidentiality agreements for language that might chill reporting of securities violations to the SEC and other regulators. The...more

Snell & Wilmer

Standard Severance Agreements May Need to Be Revised

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Many employers offer severance agreements to departing employees which, at least in part, are designed to protect the employer from disclosures of confidential information and from any future claims or recovery by the...more

Proskauer - Whistleblower Defense

SEC Continues To Scrutinize Separation Agreements

On August 16, 2016, the SEC announced that Health Net Inc. (Company) agreed to pay a $340,000 penalty to settle charges that it violated Rule 21F-17 by using severance agreements that allegedly prohibited its employees from...more

Proskauer - Whistleblower Defense

SEC Penalizes Company For Severance Language Purportedly Impeding Complaints

On August 10, 2016, the SEC announced that BlueLinx Holdings Inc. (Company) is settling charges that it violated Rule 21F-17 by requiring outgoing employees to waive whistleblower bounty awards in connection with severance...more

Orrick - Employment Law and Litigation

SEC Bounty Hunters Take Heart: SEC Fines Company $265,000 For Using Severance Agreements That Provided a Waiver of Any Monetary...

Today, the SEC announced that an Atlanta-based company, BlueLinx Holdings, is settling charges that its severance agreements contained provisions that it in its view might impede employees from communicating directly with the...more

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