The SEC has enforced against several companies for including clauses in separation or employment agreements that violate whistleblower protection laws. You can read more in these releases about settled actions with KBR, Inc. and Brink’s Company.
In a settled enforcement announced on September 8, 2023, Monolith Resources, LLC entered into a cease-and-desist order and paid a civil money penalty of $225,000 because the company included provisions in separation agreements that required certain departing employees to waive rights to whistleblower awards. What makes this case different, is that Monolith Resources, LLC is a privately held company.
You can read more in the related Press Release and SEC Order.
As always, your thoughts and comments are welcome!