A major purpose of the Federal Sentencing Guidelines for Organizations, the Sarbanes-Oxley Act, and the Dodd-Frank Act is to encourage employees to report misconduct.
The Federal Sentencing Guidelines are non-binding regulations that established a consistent sentencing regime for defendants found guilty in the federal court system of the United States in 1987. According to the Guidelines, sentences can be "quite precisely calibrated" based on a variety of variables.
The Sarbanes-Oxley Act of 2002 is a federal law in the United States that prescribes specific procedures for corporate financial record keeping and reporting. The Dodd-Frank Wall Street Reform and Consumer Protection Act, also known as Dodd-Frank, is a federal law that was passed on July 21, 2010, in the United States.
Hence, The law's prohibition against employers retaliating against employee whistleblowers was a clause added by Congress to encourage workers to disclose fraud at their company.
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