Important facts New York employees should know about the The Dodd–Frank Wall Street Reform and Consumer Protection Act.

Although congress passed the Dodd Frank Wall Street Reform Act over two years ago, New York Employees should be well aware of the rights this act provides them.

Section 922(h) of this act specifically, provides significant anti-retaliation protection for employees. Dodd-Frank’s intent was to incentivize employees to speak out against securities violations. Dodd-Frank has attempted to improve upon Sarbanes-Oxley.

Who is protected under this provision? Unlike Sarbanes-Oxley which only covers employees of publicly traded companies and their subsidiaries, Section 922(h) covers employees of both private and public companies.

How must employees report a violation? To receive protection in the anti-retaliation provision employees must report directly to the SEC. Employees will not receive any protection by reporting internally to a compliance officer, or in-house counsel. This method will not give an employee protection under this provision.

What type of reporting is required? All that is required under this provision is an employee has a full faith belief that there is a security violation. They don’t have to be right; they just have to believe that a security violation occurred.

How long does employee have to avail themselves under the anti-retaliation protection?An employee can file directly in the federal court within six years of the retaliatory conduct or within three years when the employee knew or should have known of the retaliatory conduct. However, they cannot exceed 10 years from the date of the violation, and the employee has a right to a jury trial in Federal District Court.

What remedies are available to an employee?Benefits under this provision are significant because it allows for double damages, and reinstatement within the same position with the same seniority. It also covers any litigation costs including attorney fees, and expert report fees. It’s also important to note that although these remedies are significant, they are completely independent from the potential bounty that an employee will be entitled to under the act.

If you have questions or need representation, please contact our NY Employment Attorneys.