Protecting Whistleblowers, Shareholders, and the Public
Foundation for Taxpayer & Consumer Rights Corporateering
  Home | Volunteer | Donate | Subscribe | FTCR Websites | Books | Site Map   
Main Page
Press Releases
In the Media
Factsheets
 
 OTHER TOPICS
 - Healthcare
 - Insurance
 - Citizen Advocacy
 - The Justice System
 - Billing Errors
 - Energy
 - About FTCR

home / corporate / factsheets

FACTSHEET

Protecting Whistleblowers, Shareholders, and the Public

California Senate Bill 1452 (Escutia)
Society can only prevent the next Enron if individuals within corporations are permitted, and at times required, to hold the corporation accountable to society's standards of truth and honesty. Employees within corporations must know they have a duty to inform the public of financial fraud and will be protected from employer retaliation when they come forward. Current law fails to adequately protect whistleblowers from retaliation and fails to impose adequate sanctions on perpetrators of financial fraud. SB 1452 requires executives, directors, and certain managers to come forward with crucial information that is necessary to protect pensioners, shareholders and investors from harm resulting from financial fraud. SB 1452 also protects workers who come forward with vital disclosures that protect the public.

 NEW PROTECTIONS
  • Protects employees from retaliation for refusing to break the law for their employers.
  • Protects employees from retaliation for having exercised their whistleblower rights in past employment.
  • Creates new penalties for employers who enact policies to intimidate whistleblowers or who retaliate against employees who have made protected disclosures.
  • Creates a confidential Whistleblower Hotline, providing employees with a safe channel of communication with law enforcement.

 NEW OBLIGATIONS
  • Requires corporate officers, directors, and certain, upper-level managers, if they have actual knowledge of financial fraud, to report it to the California Attorney General or face civil penalties.
  • Requires corporations to report financial fraud to shareholders and investors or face a fine.
  • Requires employers to prominently post employees' whistleblower rights and the Whistleblower Hotline number.

 NEW PENALTIES for FINANCIAL FRAUD and ANTI-WHISTLEBLOWER RETALIATION
  • Up to $10,000 civil penalty for each violation by an employer of the whistleblower protection provisions.
  • Up to $1 million fine for corporation or limited liability company that fails to report financial fraud.
  • Up to $100,000 civil penalty for executives, directors and managers who know of, but fail to report, financial fraud (managers face up to $50,000 fine).






back to top

©2000-2004 FTCR. All Rights Reserved. Read our Terms of Use and Privacy Policy | Contact Us