Sarbanes-Oxley and Discrimination Claims: A Disturbing Trend

When attorneys and others hear “Sarbanes-Oxley” or its common acronym “SOX”, they typically think of securities regulations, corporate financial accountability to shareholders, and related compliance measures. However, a recent SOX decision serves as a reminder that SOX’s reach may ultimately be interpreted to protect employees who make claims of racial and other discrimination. In Smith v. Hewlett Packard, the Department of Labor administrative law judge indicated that there may be circumstances when an employee’s complaints of racial discrimination could be considered protected activity under SOX.