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Supreme Court decision on whistleblower protection

The US Supreme Court ruled on 21 February 2018 in the case Digital Reality Trust Inc. v. Somers (16-1276) that whistleblowers who suffer company retaliation before reporting possible misconduct to the US Securities and Exchange Commission (SEC) would not be protected. The Court held that whistleblower protections passed by the Congress after the 2008 financial crisis only apply to employees who report misconduct to SEC. Whistleblowers who had not reported to SEC are not protected from being fired, demoted or harassed. In order to get whistleblower protection employees need to report misconduct or problems not only to their company’s management but also to the SEC in order to qualify for protection. In the past the SEC hat interpreted the whistleblower protection in the Dodd-Franck Act more broadly. The Supreme Court has now rejected this interpretation. For further information please read the attached decision of the US Supreme Court.