Tariffs-Free Regulatory Importing?
Asad Akhtar
remedies including reinstatement, back pay, and compensation for fees incurred because of
discrimination.51
Despite its initial praises, §. 806 has been considered unsuccessful in protecting whistle
blowers. In support of this position, it was found that: (i) the ninety-day limitation period for
filing a complaint with the DOL was excessively restrictive, (ii) the DOL’s delegated body
(Occupational Safety and Health Administration) lacked experience in assessing securities fraud
claims, and (iii) a lack of a substantial award in successfully bringing a claim against an
employer mitigated the practical benefit of the provisions. 52
B. Changes under Dodd-Frank
Dodd-Frank substantially addresses these criticisms by allowing an employee to bring a
civil claim against an employer for retaliation to a US District Court and expanded the limitation
period to six years from the date of the violation (or three years from when the employee should
have known).53 Perhaps more substantially, the SEC has interpreted the provisions under DoddFrank as allowing it to bring enforcement action against employers who retaliate against
whistleblowers or contractual agreements with employees that restrict their ability to report
violations to them.
Employer Retaliation - Paradigm Capital Management54
In June 2014, the SEC settlement with Paradigm Capital Management represented its first
enforcement action against an employer for retaliating against a whistleblower.55 In this
51
Supra, note 37 at 196.
Ibid.
53
Supra, note 37 at 199.
54
File No. 3-15930 (June 16, 2014), online: SEC (cease-and-desist proceeding brought against
Paradigm Capital by the SEC).
55
Ibid.
52
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