Does the SEC protect whistleblowers from retaliation?

Yes. The SEC whistleblower program provides significant protections against retaliation.

The Dodd-Frank Act expanded the SEC whistleblower program’s protections against retaliation. Employers are generally prohibited from discriminating in any way against whistleblowers who disclose conduct that they reasonably believe violates the federal securities laws.

To obtain the benefit of that protection, however, whistleblowers are required to report information about possible securities laws violations to the SEC “in writing” before the retaliatory conduct. Internal reporting alone is not sufficient to trigger protections against retaliatory action.

Under Dodd-Frank, a whistleblower who has reported to the SEC in writing and subsequently suffers discrimination can sue the company that took the retaliatory action in federal court. Potential remedies for retaliation include reinstatement, double backpay with interest, and other compensatory damages, including attorneys’ fees.

In addition to prohibiting retaliation against employees who have already reported, the federal securities laws also bar employers from attempting to prevent employees from reporting potential misconduct. Severance agreements, confidentiality agreements, and non-disclosure agreements that purport to restrict a current or former employee’s right to report violations to the SEC may thus be unenforceable. 

To learn more about the SEC whistleblower program and other similar programs, go to www.mololamken.com and follow us on LinkedIn. “Brilliant lawyers with courtroom savvy” — Benchmark Litigation. Copyright MoloLamken LLP 2025.