Press & News

Steven Pearlman Published in Employment Law360
"In Defense of DOL's Interpretation of Section 806"
09/15/2008

Steven Pearlman’s article, "In Defense of DOL's Interpretation of Section 806," was published in the September 15, 2008 issue of Employment Law360. In his article, Steve argues against a recent Wall Street Journal article, as well as letters from Senators Leahy and Grassley, which found that the U.S. Department of Labor's (DOL) interpretation of the scope of the Sarbanes-Oxley Act's whistleblower protection provisions (Section 806) is so narrow that it has resulted in many dismissals and leaves most of corporate America unprotected. According to Steve, the DOL's position that "there is no legal basis for the argument that subsidiaries of covered corporations are automatically covered [by Section 806]," is eminently reasonable and the Senators' stated fears are unfounded.

Throughout his article, Steve outlines why the DOL's interpretation of the scope of Section 806's protections rests on solid ground. As he concludes, "SOX's plain language and legislative history make it clear that the whistleblower protection provisions set forth in Section 806 were enacted to protect shareholders of public companies from the potential impact of fraudulent activity at the entities in which they invest."