SEC Shows No Patience For Muzzling Whistleblowers

Law360, New York (August 11, 2016, 9:32 PM EDT) -- The U.S. Securities and Exchange Commission on Wednesday took aim at severance agreements that prevent whistleblowers from collecting cash for their tips, making clear that the agency has no patience for impeding whistleblowing in any form and suggesting it may impose even broader requirements on employers that step out of line.

The SEC's settlement with Atlanta-based construction product distributor BlueLinx Holdings Inc. marks the third time the agency has brought charges that a company's employment or severance agreements illegally discouraged employees from becoming whistleblowers, and experts said the SEC's continuing focus on the area means employers need to pay serious attention...

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