The United States Securities and Exchange Commission recently updated its whistleblower program to provide monetary incentives to employees who report misconduct within their companies directly to the government.<\/p>\n
The Dodd\u2013Frank Wall Street Reform and Consumer Protection Act, passed last July, required the SEC to pay 10 to 30 percent of any monetary sanctions over $1 million levied after company misconduct to the whistleblower who reported it.\u00a0 Congress hopes the law will encourage employees to alert the government to fraud and mismanagement.<\/p>\n
Corporations argued against the provision, saying the rules do nothing to encourage employees to contact management to the problem first, potentially fixing the issue at a much lower cost to the company.\u00a0 They sought a mandatory internal reporting requirement, but that idea was ultimately thrown out.<\/p>\n
Instead, the SEC suggested it would push potential whistleblowers to report any misconduct internally first by increasing incentives if evidence showed the employee tried to fix the (more…)<\/span><\/a><\/p>\n","protected":false},"excerpt":{"rendered":" The United States Securities and Exchange Commission recently updated its whistleblower program to provide monetary incentives to employees who report misconduct within their companies directly to the government. The Dodd\u2013Frank Wall Street Reform and Consumer Protection Act, passed last July,…<\/span><\/p>\n