Corporate whistleblower protection under the Sarbanes-Oxley securities law stops at the U.S. border.
The 1st U.S. Circuit Court of Appeals has become the first appellate court to weigh in on the whistleblower protections under the Sarbanes-Oxley Act, saying it does not extend to foreign workers employed by the overseas subsidiaries of U.S. companies.
"If the whistleblower protection provision is given extraterritorial reach in a case like the present one, it would empower U.S. courts and a U.S. agency, the [Department of Labor], to delve into the employment relationship between foreign employers and their foreign employees," Judge Levin H. Campbell wrote on behalf of the panel.
"We believe if Congress had intended that the whistleblower provision would apply abroad to foreign entities, it would have said so," he said.
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