On February 8, 2024, the U.S. Supreme Court issued a unanimous opinion holding that a whistleblower with a retaliation claim under the Sarbanes-Oxley Act of 2002 (“SOX”) does not need to establish that their employer acted with “retaliatory intent” to succeed on their claim. An employee must merely show that their protected whistleblowing activity was a “contributing factor” in an adverse employment action against them by their employer. Murray v. UBS Securities, LLC, 144 S.Ct. 445 (2024). An employer’s retaliatory intent or lack of animosity is “irrelevant.” Id. at 446.
Continue Reading SCOTUS Holding Reinforces Employee-Friendly SOX Whistleblower Burden

The California Supreme Court has clarified that state whistleblower retaliation claims should not be evaluated under the McDonnell Douglas test, but rather under the test adopted by the California legislature in 2003, thus clarifying decades of confusion among the courts.  
Continue Reading California Supreme Court Clarifies Burden of Proof in Whistleblower Retaliation Claims

New York Governor Kathy Hochul has signed S.B. 4394, an amendment of Section 740 to the New York Labor Law that dramatically expands safeguards against employer whistleblower retaliation. The new law expands protected activity that entitles an employee to whistleblower protection, the categories of covered workers protected by the statute, and the definition of prohibited retaliatory actions, among other changes.  The new law takes effect on January 26, 2022. Some of the key provisions that New York employers should carefully review are listed below.
Continue Reading New York Substantially Expands Employee Whistleblower Protections

There may be some changes coming to how California enforces its antidiscrimination law, the Fair Employment and Housing Act.  In February 2017, a bill was introduced in the California Senate proposing to allow local government entities to enforce antidiscrimination statutes. 
Continue Reading California’s Department of Fair Employment and Housing Will Study Local Enforcement of State Employment Anti-Discrimination Law

Last week, the United States Supreme Court released its decision in Digital Realty Trust v. Somers, where the Court unanimously adopted a narrow reading of the Dodd-Frank Act’s anti-retaliation “whistleblower” provision.  The Court held that the provision applies only to individuals who report securities violations directly to the Securities and Exchange Commission.
Continue Reading Supreme Court Narrowly Interprets Dodd-Frank’s Definition of Whistleblower