On September 24, 2019, Senators Chuck Grassley (R-IA) and Tammy Baldwin (D-WI) introduced S. 2529, the Whistleblower Programs Improvement Act of 2019. Senators Joni Ernst (R-IA) and Dick Durbin (D-IL) have signed on as co-sponsors. Bryan Wood of Berman Tabacco, along with fellow members of Taxpayers Against Fraud Education Fund (“TAFEF”), provided key advice and counsel in connection with the legislation.
If passed in its current form, the bill would:
- Legislatively overrule the Supreme Court’s decision in Digital Realty Trust, Inc. v. Somers, 138 S. Ct. 767 (2018) and extend the protections of the SEC and CFTC programs to whistleblowers who report allegations of wrongdoing internally but not to the Commissions;
- Make modest improvements toward the timely processing of claims and prompt payment of awards under the SEC and CFTC programs;
- Increase the amount the CFTC may hold in its Consumer Protection Fund from $100 million to $150 million; and
- Bring the dispute resolution provisions of the SEC program into line with those contained in the CFTC statute, under which conditions of employment and contracts with individual employees, including mandatory arbitration agreements, are deemed invalid and unenforceable if they conflict or interfere with whistleblower protections.
“If enacted, this legislation will greatly improve the SEC’s whistleblower program, mostly importantly by enhancing retaliation protections and imposing certainty on the timing of award determinations,” said Wood. “I am pleased to have worked with the TAFEF team to provide the whistleblower’s perspective on this important issue on behalf of our clients.”
The text of the bill as introduced can be found here.