SCOTUS Curbs Whistleblower Protections

What’s the story?

The U.S. Supreme Court ruled unanimously on Wednesday that corporate whistleblowers must take their claims of alleged wrongdoing to the Securities and Exchange Commission to qualify for protections under the Dodd-Frank Act.

Why does it matter?

Justice Ruth Bader Ginsburg, writing for the court, ruled that Digital Realty Trust was within their legal right to fire Paul Somers in 2014 for reporting to senior management that his supervisor was hiding cost overruns.

“Somers did not provide information ‘to the Commission’ before his termination…so he did not qualify as a ‘whistleblower,’” Ginsburg wrote.

While the high court’s decision is seen as a win for corporate America, legal experts said it may backfire.

SCOTUS’ “ruling confirms that whistleblowers who report internally are not protected from retaliation. What is now abundantly clear is that employees should get a lawyer and go straight to the SEC," Chicago attorney James Barz told the L.A. Times.

What do you think?

Should Congress amend the Dodd-Frank Act? Or should they craft a new bill to protect whistleblowers? Should whistleblowers even be protected? Hit Take Action and tell your reps, then share your thoughts below.

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—Josh Herman

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