Takeaways:

- SEC is targeting contract terms that appear to restrict contact with the SEC or require employee whistleblowers to waive monetary recoveries.

- Express disclosure of these rights in severance agreements is now required by the SEC.

- The fact that the contract did not thwart any whistleblowers is not an adequate defense.

The U.S. Securities & Exchange Commission (SEC) continues to attack any employer practices which may have the effect of suppressing whistleblowers’ access to the SEC. The recent spate of settled enforcement actions against companies with agreements or policies that could potentially impede employee communication with the SEC demonstrates the SEC’s intention to scrutinize all levels of business practices—and eradicate anything that could even potentially stifle whistleblowers’ rights.