Corporate Compliance

Sarbanes-Oxley

Enacted in response to the corporate financial scandals involving Enron, Arthur Andersen, and WorldCom, the 2002 Sarbanes-Oxley Act significantly changed federal securities law with respect to financial reporting and auditing. While the Act focuses on securities violations of publicly traded companies, its effects can be felt in many different departments and at virtually every level of most business organizations. To maintain compliance with all provisions of Sarbanes-Oxley, employers not only need to update procedures to prevent securities violations, they must also review and update policies regarding employee benefits and compensation, document handling, and employee protection.

Littler helps employers understand the implications of the Sarbanes-Oxley Act and associated whistleblower protection provisions. The Firm advises employers on changes to policies and procedures to comply with both the financial and human resources implications of Sarbanes-Oxley. Littler helps employers update their retaliation policies to include protection for employees who report conduct they reasonably believe constitutes a violation of federal securities law. The Firm advises clients to notify employees of their rights to bring concerns and provide information to accountants and auditors, and assists them in establishing procedures by which employees can make confidential, anonymous complaints. The Firm also helps companies update and recirculate their document retention guidelines, to comply with regulations for collecting relevant documents.

With criminal penalties and heavy fines for Sarbanes-Oxley violations, it pays to revise procedures and educate staff to achieve compliance with the far-reaching provisions of this Act. Littler's step-by-step guidance can save companies millions in unexpected expenses.