The U.S. Department of Labor Administrative Review Board (“ARB”) extended the potential reach of SOX whistleblower coverage to private companies whose subsidiaries are partially owned by a publicly traded company. It also confirmed that reports to external auditors and concerns raised through an employee’s ordinary job duties may constitute protected activity. Gloss v. Tata Chemicals North America, ARB No. 2024-0006
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Trends in Recent Healthcare Restrictive Covenant Laws
State legislatures have accelerated efforts to limit restrictive covenants for healthcare professionals, creating a changing and fragmented legal landscape. To understand where we’re headed, we reviewed state legislation around the country enacted over the past two years. Over this period of time, fourteen states have enacted laws limiting the use of restrictive covenants in the healthcare sector. The result is…
Cal. Federal Court Grants Employer Summary Judgment Despite Protected Whistleblowing
A recent decision from the U.S. District Court for the Northern District of California granting summary judgment in favor of an employer despite evidence of protected whistleblowing is instructive. Han v. Pfizer (No. 23-cv-039080-AMO).
Background
The plaintiff, a compliance analytics employee, alleged that his former employer, a pharmaceutical company, retaliated against him after he internally reported suspected illegal activity and…
SOX Whistleblower Claim Survives Summary Judgment Despite No Explicit Allegation of Fraud
On April 17, 2026, in Potyondy v. Pacific Coast Energy Co. (No. 2:24-CV-09151), the U.S. District Court for the Central District of California denied an employer’s motion for summary judgment on a SOX whistleblower claim—even though the plaintiff admitted he never explicitly reported “fraud.” The court found there to be triable issues of fact where the alleged protected activity consisted…
New California and New York Laws Target “Stay-or-Pay” Arrangements
California and New York recently enacted statutory restrictions aimed at “stay-or-pay” arrangements: California AB 692 (Cal. Bus. & Prof. Code § 16608 & Cal. Lab. Code § 926) and the New York Trapped at Work Act (N.Y. Lab. Law art. 37, §§ 1050-1055), respectively. Such arrangements are contractual provisions that, while falling short of a non-competition agreement, make it costly…
EEOC Issues Updated Guidance on National Origin Discrimination
The EEOC has issued a one-page technical assistance document, “Discrimination Against American Workers Is Against the Law” and updated its national origin discrimination landing page, reinforcing national origin discrimination protections with a focus on immigration-related issues. The latest guidance follows the EEOC’s previous 2016 Enforcement Guidance on National Origin Discrimination, which remains in effect.
Title VII,…
Court Narrowly Interprets Whistleblower Protections Under AMLA and FIRREA
On September 23, 2025, in Park v. Shinhan Bank America, the U.S. District Court for the Southern District of New York dismissed whistleblower retaliation claims brought by four former compliance officers of Shinhan Bank America (“SHBA”) pursuant to Rule 12(b)(6). No. 22-CV-10331 (VSB). The claims arose under the Anti-Money Laundering Act of 2020 (“AMLA”) and the Financial Institutions Reform, Recovery,…
Colorado Federal Court Dismisses SOX and Dodd-Frank Whistleblower Claims, Emphasizing Administrative Prerequisites
On September 17, 2025, in Prkic v. Sezzle, Inc., the U.S. District Court for the District of Colorado dismissed whistleblower retaliation claims under both the Sarbanes-Oxley Act (“SOX”) and the Dodd-Frank Act (“Dodd-Frank”) where the plaintiff failed to: (i) submit her SOX claim to OSHA; and, (ii) provide information to the SEC during her employment. No. 24-cv-02624. The plaintiff’s claims…
FTC Signals Forthcoming Non-compete Enforcement Actions
On September 4, 2025, the FTC announced an enforcement action and proposed settlement with Gateway Pet Memorial Services (the “Company”), a pet cremation company, over the Company’s overuse of post-employment non-competes with certain terms it found concerning. At nearly the same time, the FTC withdrew its appeals pending in the Fifth and Eleventh Circuits of district court rulings issued last…
DC District Court Dismisses SOX Whistleblower Retaliation Claim Where Plaintiff Was Employed Abroad And His Employment Contract Was Not Governed By U.S. Law
In Jefferson v. Science Apps. Int’l Corp., et al.,[1] the U.S. District Court for the District of Columbia dismissed the plaintiff’s whistleblower retaliation claim brought under Section 806 of the Sarbanes-Oxley Act (“SOX” or the “Act”), holding, in line with courts across the country, that the statute does not apply extraterritorially and that there can be no domestic application…