USSC Extends Whistleblower Protections to Contractors

[Nuclear Unicorn]

Supreme Court Extends Whistleblower Protection To Millions Of Small Companies

The U.S. Supreme Court today ruled the whistleblower protections in the Sarbanes-Oxley financial-reform law extend to employees of contractors of public companies, in a decision supporters say will rein in the accountants and other outside contractors who closed their eyes to financial scandals at Enron and Worldcom, but which defense lawyers say could expose millions of small businesses to opportunistic employee suits.

The court, in a decision by Justice Ruth Bader Ginsburg, rejected Fidelity parent FMR’s argument that only direct employees of public companies should receive protection. FMR, like most mutual fund companies, operates its funds with zero employees under a contracting arrangement with separately incorporated investment advisors. It sought to avoid liability under a whistleblower-retaliation case filed by Jackie Hosang Lawson, a former senior director of finance who claimed she was punished for disclosing certain cost-accounting improprieties.

http://www.forbes.com/sites/danielfisher/2014/03/04/supreme-court-says-sarbox-whistleblower-protection-extends-to-contractors/

I'll wager dollars to donuts FMR went with contractors in the first place on the assumption the contractors had no legal protections.