CFPB issues circular on whistleblower protections under Dodd-Frank
The Consumer Financial Protection Bureau Wednesday issued a circular to law enforcement agencies and regulators explaining how companies may be breaking the law by requiring employees to sign broad nondisclosure agreements that could deter whistleblowing.
The circular explains how imposing sweeping nondisclosure agreements that do not clearly permit communication with law enforcement may intimidate employees from disclosing misconduct or cooperating with investigations.
The Dodd-Frank Act includes a provision specifically protecting whistleblowers from retaliation for reporting violations of consumer financial protection laws.
The circular explains that financial institutions may violate the act when they require employees in certain circumstances to sign broad nondisclosure agreements, or other types of agreements that contain confidentiality requirements, if the agreements do not clearly permit communications or cooperation with law enforcement.
continue reading »