View Page As PDF
Share Button
Tweet Button
Reuters reported on Tuesday that the SEC – for the second time in less than a week – has filed civil charges against a company for including language in its severance agreements that would preclude former employees from receiving any financial benefit arising from being a company whistleblower. Specifically, the language at issue required employees to waive "any right to any individual monetary recovery" arising from a government proceeding.

In the past year, the SEC has also cracked down on employers who have: (1) used restrictive confidentiality agreements that muzzled employees who had been interviewed in connection with internal investigations; and (2) used agreements that barred employees from reporting to the SEC without first alerting the company attorneys. It appears that more cases could be in store; one company reported receiving a subpoena from the SEC in connection with employment agreements, and one defense attorney reported the SEC has been working on similar cases and some settlements have been pending for months.
COMMENT
+