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Expert Analysis

Time To Revisit Severance Agreements

Law360, New York (August 12, 2016, 1:42 PM EDT) -- A recent order from the U.S. Securities and Exchange Commission shows that the SEC Office of the Whistleblower — under the auspices of the new Acting Chief Jane Norberg — is apt to pursue enforcement actions where it finds that employee severance and settlement agreements impede an individual from reporting a violation of securities laws to the SEC. Indeed, on Aug. 10, 2016, the SEC announced that BlueLinx Holdings Inc. is settling charges that it violated Rule 21F-17 by requiring outgoing employees to waive whistleblower bounty awards in connection with severance agreements and by using overly restrictive confidentiality language....

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