What does Section 806 protect against?

Firing, demotion, suspension, harassment, a pay cut, reassignment, or exposing your identity, when a public company does it because you reported conduct you reasonably believe is securities fraud, shareholder fraud, bank fraud, wire or mail fraud, or a violation of SEC rules.

Who is covered by Section 806?

Any employee of a publicly traded company, and employees of that company's contractors and subcontractors. You are protected as long as you reasonably believed the conduct was unlawful, even if it later turns out you were mistaken.

How long do I have to file?

180 days from the retaliation, or from when you became aware of it, filed with OSHA (18 U.S.C. 1514A(b)(2)(D)). It is one of the shortest deadlines in whistleblower law, so the safest move is to call an attorney right away.

What do I have to prove?

That you engaged in protected activity, your employer knew about it, you suffered an adverse action, and the protected activity was a contributing factor. After Murray v. UBS (2024), you do not have to prove the employer acted with retaliatory intent.

Reinstatement with seniority, back pay with interest, and special damages including litigation costs, expert witness fees, and attorney's fees. There is no statutory cap, and SOX claims have produced multi-million-dollar recoveries.

SOX Section 806: Whistleblower Anti-Retaliation Rights

Sarbanes-Oxley Whistleblower Protection (Guide to Section 806)

Section 806 of the Sarbanes-Oxley Act protects employees of publicly traded companies who report corporate fraud from being fired, demoted, suspended, harassed, or otherwise retaliated against. You have 180 days to file a complaint with OSHA, and you can recover reinstatement, double back pay, and damages. Call (888) 713-6653 for a free, confidential case review.

The Sarbanes-Oxley (SOX Act) was enacted to eliminate corporate fraud.

Click here for our Definitive Summary to the Sarbanes Oxley Act.

One of Sarbanes-Oxley’s most important provisions enacted special rules to protect employees who disclosed corporate fraud - Section 806.

Below is a complete rundown of Section 806. Reviewing just the 5 points below you will have an full grasp of SOX 806 and the SOX whistleblower protections the act provides.

employer retaliation against whistleblowers

Have Knowledge of Fraud?

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Keep reading to learn how Sarbox helps protect employees who blow the whistle on corporate fraud.

"SOX Section 806 protects corporate whistleblowers from retaliation. The cash awards come separately, through the SEC's Dodd-Frank whistleblower program..."

Why protecting Whistleblowers is important.

During the Congressional hearings following the Enron and WorldCom collapses it became clear employees knew of misleading financial reporting and accounting practices within these companies. Fear of retaliation, employer pressure, or being blackballed in their industry likely prevented their coming forward.

How it happens? (Corporate Code of Silence)

The Corporate Code of Silence is a condition within a company when employees are discouraged from reporting fraudulent behavior to the proper authorities.

Employees with knowledge of executive's fraudulent behavior would be threatened with termination and face discrimination by coming forward.

Congress sought a way to empower these whistleblowers in order to avoid future corporate fraud. This was accomplished by the SOX Act under Section 806.

Protection for Whistleblowers (Section 806)

Provisions of SOX Section 806

Section 806 of Sarbanes-Oxley provides protections for whistleblower employees that disclose corporate fraud. The Act authorized the Department of Labor to protect whistleblowers from employer retaliation. SOX also authorized the Department of Justice to bring criminal charges against those responsible for the retaliation. This makes employer retaliation illegal.

Types of Employer / Corporate Retaliation

Retaliatory conduct prosecutable under SOX includes any discrimination against an employee whistleblower. Termination, demotion, transferring, harassing, suspending and reduction in pay are all actionable offenses. Revealing the employee as a whistleblower is also a violation.

Who is protected under Section 806?

Any employee, or employee of a contractor or sub-contractor employee of a publicly traded company that reports what they believe is fraud. For a wider view of who is protected under federal whistleblower law, see our protection overview.
These employees should report what they reasonably believe is fraudulent behavior to the FBI or DOL. Whistleblowers should contact a qualified attorney before considering any action.

Whistleblower protected conduct and activity.

Section 806 provides protection for employees who report what they reasonably believe is:
- Corporate Fraud including Shareholder fraud, securities fraud, bank fraud, wire fraud or mail fraud
- Violations of SEC rules and/or regulations that govern corporate financial reporting.

Whistleblower retaliation penalties for executives and employers were also enacted.

“Whoever knowingly, with the intent to retaliate, takes any action harmful to any person, including interference with the lawful employment or livelihood of any person, for providing to a law enforcement officer any truthful information relating to the commission or possible commission of any Federal offense, shall be fined under this title or imprisoned not more than 10 years, or both.’’ (Title 11: Section 1107)
This means for any retaliation by an employer (termination, demotion, discrimination, etc.) against an employee who discloses fraudulent behavior can face up to 10 years in federal prison.

Reporting, Proving and Settlements from the SOX Act (Legal Representation)

Reporting Violations.

There is limited time for Whistleblowers to initiate a SOX claim of employer retaliation. Whistleblowers have 180 days (Section 1514.b.2.D) to disclose acts they “reasonably believe constitute a violation”.
Whistleblowers should report directly to the Department of Labor or the Department of Justice (FBI). It is highly recommended to seek legal counsel from a qualified attorney before taking this action.

Proving a Retaliation Case

See our guide on how to prove a whistleblower retaliation claim for a closer look at the evidence and the contributing-factor standard.

Four things an employee whistleblower will need to prove in a retaliation case.
- The whistleblower was involved in a protected disclosure activity
- The employer knew of this protected activity
- The whistleblower was subject to some type of discrimination
- The protected disclosure was a contributing factor in this discrimination

Employer’s defense

Employer’s will defend their actions by stating that in the normal course of events the action taken against the whistleblower would have occurred regardless of disclosures the employee made.

Settlements provided under the SOX Act

Compensatory damages for Retaliation
- Reinstatement with the same seniority status that the employee would have had, but for the discrimination.
- The amount of back pay and lost wages, with interest.
- Compensation for any special damages sustained as a result of the discrimination, including litigation costs, expert witness fees, and reasonable attorney fees.
- Continued civil action can be taken against corporations for pain and suffering, emotional distress and reputational harm. There is no monetary limit on whistleblower retaliation settlements. Plaintiffs can receive multi-million dollar settlements if properly represented in a SOX Case.

SOX Section 806 FAQ

Q: What does Section 806 protect against?: A: Firing, demotion, suspension, harassment, a pay cut, reassignment, or exposing your identity, when a public company does it because you reported conduct you reasonably believe is securities fraud, shareholder fraud, bank fraud, wire or mail fraud, or a violation of SEC rules.
Q: Who is covered by Section 806?: A: Any employee of a publicly traded company, and employees of that company's contractors and subcontractors. You are protected as long as you reasonably believed the conduct was unlawful, even if it later turns out you were mistaken.
Q: How long do I have to file?: A: 180 days from the retaliation, or from when you became aware of it, filed with OSHA (18 U.S.C. 1514A(b)(2)(D)). It is one of the shortest deadlines in whistleblower law, so the safest move is to call an attorney right away.
Q: What do I have to prove?: A: That you engaged in protected activity, your employer knew about it, you suffered an adverse action, and the protected activity was a contributing factor. After Murray v. UBS (2024), you do not have to prove the employer acted with retaliatory intent.
Q: What can I recover?: A: Reinstatement with seniority, back pay with interest, and special damages including litigation costs, expert witness fees, and attorney's fees. There is no statutory cap, and SOX claims have produced multi-million-dollar recoveries.

Whistleblower Qui Tam Attorney Help: SEC Reward Program Claims

Note: the SEC whistleblower reward program described here was created by the Dodd-Frank Act and is separate from Section 806. Section 806 protects you from retaliation; the Dodd-Frank SEC program is what pays a cash award.

What is the SEC Reward Program? The SEC knows reporting wrongdoing can be difficult in the corporate environment. The legal settlements and potential job difficulties may not be enough to entice whistleblowers to come forward. With this in mind the SEC offers rewards for people who want to do the right thing and prevent fraud.

Issuing of Rewards to Whistleblowers (a.k.a. Relator) The program rewards those whistleblower employees that provide unique and original information. This information has to provide the SEC with enforceable actions greater than $1 million dollars. This action will include penalties, disgorgement and interest. Whistleblowers can receive between 10-30 percent of the money collected.

The pursuit of Whistleblower or 'relator' rewards is a process the should be undertaken with proper legal representation. An experience “qui tam” or SOX Lawyer should be consulted so you understand your legal options.

Lawsuit Legal represents the people inside public companies who refused to stay quiet about the books. We track the 180-day clock, we know how OSHA handles these complaints, and we work on contingency. You Win or It's Free. Call (888) 713-6653 for a free, confidential review. We help the accountants, auditors, analysts, and compliance officers who reported the fraud and got punished for it.

SOX Section 806: Whistleblower Protection from Retaliation

Sarbanes-Oxley Section 806

Reporting Violations

Whistleblower Claims