H.R. 2483: “Whistleblower Improvement Act of 2011” introduced in July amends the Securities Exchange Act of 1934 and the Commodity Exchange Act to require a whistleblower employee to first report information relating to misconduct to his or her employer. It prohibits any award unless this is first step is taken unless the company lacks whistleblower protections or a anonymous reporting system, and permits the Securities Exchange Commission (SEC) to make awards discretionary rather than mandatory. Further, it requires the SEC to notify the pertinent entity before beginning any enforcement when possible, and allows for an impact study on how a whistleblower incentives program has affected shareholder value. More here.
Basically, if you notice illegal activity happening within your company, you have to warn the company before the SEC, jeopardizing your job as well as any incentive to report misconduct. The bill should be called the “Whistleblower Abolishment Act.” I can’t imagine how anyone could read this bill and not pick up on its evil intentions. The face you see above is Rep. Michael Grimm [R-NY13], the man sponsoring H.R. 2483. The more attention people pay to bills like this, the less likely they will sneak past us and become law. Please spread the word and share your thoughts.