One of the most significant pieces of legislation passed last year was the Sarbanes-Oxley Act — the centerpiece to regaining public confidence in corporate management. After the collapse of several big companies in late 2001, Congress began to look for ways to shore up investor confidence. Whistleblowers played a key role in bringing corporate wrongdoers to justice in each of the failed companies.

As a result, the act specifically addresses concerns for whistleblowers. It makes it illegal for a public company to discharge or discriminate against an employee because he or she provides information to a federal regulatory or law enforcement agency. The civil whistleblower provisions extend liability to any officer, employee, contractor, or agent of the company. Retaliation or retribution against an employee must be a “contributing factor” in the adverse employment decision. From an employer standpoint, you must provide “clear and convincing evidence” that you would have taken the same action in the absence of the person’s whistleblowing activity.

In addition to remedies such as reinstatement, back pay, and attorney and court fees, employers can be subject to criminal penalties that might include up to 10 years in prison.