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Whistleblower Protection for Employees of Public Company Contractors

03.24.14

For over a decade, the Department of Labor has interpreted Sarbanes-Oxley Act of 2002 as protecting employees of public company contractors. This was disputed by the First Circuit, which found in 2012 that Section 1514A only protects public company employees. However, on March 2, 2014, the United States Supreme Court, in a divided decision, confirmed that Section 1514A does, indeed, extend protection to employees of contractors of public companies.

According to the recent Gardere client alert authored by Partner Orin H. Lewis, this decision exposes a variety of ambiguities that will likely serve as fodder for future disputes.

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