In a landmark unanimous ruling late last week, Murray v. UBS Securities, LLC, et al. 601 U. S. ____ (2024), the U.S. Supreme Court held that whistleblowers do not need to prove their employer acted with “retaliatory intent” to be protected under the Sarbanes-Oxley Act. Instead, all whistleblower plaintiffs need to prove is that their protected activity was a “contributing factor” in the employer’s unfavorable personnel action. Continue Reading U.S. Supreme Court Endorses Low Burden of Proof for Whistleblowers

In People ex rel. Garcia-Brower v. Kolla’s, Inc., the California Supreme Court resolved a split between the Courts of Appeal for the First and Second Districts over whether a protected “disclosure” under Labor Code section 1102.5(b) includes a report of unlawful activity made to an employer or agency that already knew about the reported unlawful activity. The Supreme Court held that it does.Continue Reading California Supreme Court Adopts Broader Definition of “Disclosure” Under State Whistleblower Law

Amid a bevy of legislation crossing the Governor’s desk directly relating to the ongoing public health crisis, Governor Newsom approved AB 1947 with little public fanfare, but significant implications for employers.  The new legislation amends the Labor Code in two substantive ways:  (1) it lengthens the period of time in which employees can file complaints with the Division of Labor Standards Enforcement (“DLSE”); and (2) authorizes a court to award reasonable attorney’s fees to a plaintiff who prevails in a “whistleblower” action under Labor Code § 1102.5.  While not expressly considered “coronavirus” legislation, it is clear the coronavirus pandemic influenced the Legislature’s decision to further expand certain rights under California’s workplace antiretaliation laws.
Continue Reading AB 1947’S New Filing Period for DLSE Claims and Attorney’s Fees Provisions: Coronavirus Legislation in Sheep’s Clothing?

In Wadler v. Bio-Rad Laboratories, Inc., No. 17-16193, 2019 WL 924827 (9th Cir. Feb. 26, 2019), the United States Court of Appeals for the Ninth Circuit held that statutes, including the Foreign Corrupt Practices Act (“FCPA”), do not constitute “rule[s] or regulation[s] of the Securities and Exchange Commission” (“SEC”) for purposes of determining whether an employee engaged in protected activity in a whistleblower claim under Section 806 of the Sarbanes-Oxley Act of 2002 (“SOX”).  This decision clarifies the proper application of the express statutory language of Section 806.
Continue Reading Ninth Circuit Holds That Statutes Do Not Constitute “Rules or Regulations of the SEC” for Purposes of Sarbanes-Oxley Act Whistleblower Claims