Federal Law

SOX Section 806

Sarbanes-Oxley Act - Section 806 (Whistleblower Protection)

18 U.S.C. § 1514A

Employer Size

1+

Filing Deadline

180 days

Extended Deadline

— days

Filing Agency

OSHA; DOL Administrative Review Board

Overview

Section 806 of the Sarbanes-Oxley Act (SOX) provides whistleblower protections to employees of publicly traded companies who report conduct they reasonably believe constitutes mail fraud, wire fraud, bank fraud, securities fraud, violations of SEC rules and regulations, or any provision of federal law relating to fraud against shareholders. The provision also covers employees of subsidiaries and contractors of publicly traded companies. Complaints are initially filed with OSHA, and if not resolved within 180 days, the complainant may file a de novo action in federal district court. SOX Section 806 was enacted in response to the Enron and WorldCom corporate fraud scandals to encourage employees to report corporate wrongdoing.

Key Provisions

  • Prohibits retaliation against employees who report suspected fraud or securities violations
  • Covers employees who provide information to or assist in investigations by federal regulatory agencies, Congress, or internal supervisors
  • Initial complaint filed with OSHA; kick-out provision allows federal court action after 180 days
  • Burden-shifting framework: employee must show protected activity was a contributing factor in adverse action
  • Employers may defend by showing they would have taken the same action regardless of the protected activity

Available Remedies

Reinstatement with the same seniority statusBack pay with interestCompensatory damages including litigation costs, expert witness fees, and attorney feesSpecial damages (emotional distress)

Filing Information

Deadline

180 days from the retaliatory action

Agency

OSHA (initial complaint); DOL Administrative Review Board

Eligibility Notes

  • •Applies to employees of publicly traded companies
  • •Also covers subsidiaries and contractors of public companies
  • •Must report violation of SEC rules, mail/wire/bank fraud, or federal fraud against shareholders
  • •Complaint is initially filed with OSHA, not the SEC
  • •If not resolved within 180 days, complainant may file de novo action in federal court

Covers These Situations

whistleblowerretaliationwrongful termination

Protected Characteristics

fraud reportingsecurities violationsshareholder fraud

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This information is provided for educational purposes only and does not constitute legal advice. Laws and regulations are subject to change. Consult a qualified employment attorney for advice about your specific situation. Last reviewed: February 2025.