CEA Whistleblower Protection & Reporting 4 — Questions and Answers
Question 1: Which of the following disclosures is NOT typically protected under federal whistleblower statutes?
- Reporting fraud against the government to a supervisor
- Disclosing confidential information to a competitor to expose wrongdoing (Correct answer)
- Reporting securities violations to the SEC
- Reporting workplace safety violations to OSHA
Correct answer: Disclosing confidential information to a competitor to expose wrongdoing
Disclosing confidential or proprietary information to a competitor is not a protected disclosure and may itself constitute a legal violation.
Question 2: A manager who previously reported misconduct is later excluded from key meetings and given minimal assignments. This is an example of what?
- Performance management
- Ostracism as a form of workplace retaliation (Correct answer)
- Voluntary role reassignment
- Standard organizational restructuring
Correct answer: Ostracism as a form of workplace retaliation
Excluding a whistleblower from meetings and reducing responsibilities is a recognized form of retaliatory ostracism and workplace marginalization.
Question 3: Under the National Labor Relations Act (NLRA), what type of employee activity related to reporting workplace concerns is protected?
- Individual complaints to management about personal working conditions
- Concerted activity where employees act together to address shared workplace concerns (Correct answer)
- Reporting a coworker's personal misconduct unrelated to employment
- Filing anonymous reports about competitors' labor practices
Correct answer: Concerted activity where employees act together to address shared workplace concerns
The NLRA protects concerted activity—collective action by employees to improve their working conditions—including joint complaints about workplace issues.
Question 4: What remedies are typically available to a successful whistleblower retaliation claimant under SOX?
- Criminal penalties against the employer only
- Reinstatement, back pay, and attorney's fees (Correct answer)
- Punitive damages capped at $500,000
- Only injunctive relief to stop ongoing retaliation
Correct answer: Reinstatement, back pay, and attorney's fees
SOX retaliation remedies include reinstatement to the same seniority, back pay with interest, and compensation for litigation costs including attorney's fees.
Question 5: Which best describes the 'burden-shifting' framework in a whistleblower retaliation case?
- The employer must prove fraud before the whistleblower can file a complaint
- The complainant first shows protected activity and adverse action; the employer then must prove a legitimate non-retaliatory reason (Correct answer)
- The government must prove retaliation occurred before the whistleblower receives protection
- The whistleblower must prove retaliation by clear and convincing evidence throughout the case
Correct answer: The complainant first shows protected activity and adverse action; the employer then must prove a legitimate non-retaliatory reason
In burden-shifting, the complainant establishes a prima facie case of retaliation, then the burden shifts to the employer to articulate a legitimate reason for the adverse action.
Question 6: What is a 'whistleblower policy' designed to accomplish within an organization?
- Limit the types of concerns employees may report to management
- Establish procedures for reporting concerns and protections against retaliation (Correct answer)
- Require employees to report all suspicions regardless of their certainty
- Transfer legal liability for misconduct from the organization to the reporting employee
Correct answer: Establish procedures for reporting concerns and protections against retaliation
A whistleblower policy outlines reporting channels, investigation procedures, and explicit anti-retaliation commitments to encourage ethical reporting.
Question 7: An employee reports suspected FCPA violations involving overseas bribery. Which agency would primarily handle an external report of this nature?
- OSHA Whistleblower Protection Program
- The Department of Labor
- The SEC or DOJ, which jointly enforce the FCPA (Correct answer)
- The Federal Reserve Board
Correct answer: The SEC or DOJ, which jointly enforce the FCPA
The SEC and DOJ share enforcement authority over the Foreign Corrupt Practices Act, and both accept tips related to overseas bribery by U.S. companies.
CEA Whistleblower Protection & Reporting 4
Which of the following disclosures is NOT typically protected under federal whistleblower statutes?