OSHA Orders Wells Fargo to Rehire Whisteblower
The Occupational Safety and Health Administration (OSHA) has ordered Wells Fargo to rehire a former employee who was fired for reporting fraud.
The incident triggering this move dates back to 2010, during which a former manager at one of Wells Fargo's L.A. branches was fired. Reports indicate that the former manager was terminated from his position after he reported a series of incidents involving suspected bank, mail and wire fraud. The former manager discovered two banks with whom he worked was conducted fraud, after which he reported the incident. Wells Fargo fired the manager from his position.
Of course, the Sarbanes-Oxley Act (SOX) protects employees from retaliation for reporting such incidents. "Whistleblowers" such as the former Wells Fargo manager cannot be fired, demoted or otherwise punished for reporting fraud under federal law. When speaking about the incident, OSHA said it enforces the whistleblower protection rights of SOX, as well as 21 other statutes, to protect employees who report violations from retaliation.
In addition to rehiring the former manager, Wells Fargo must also pay compensatory damages and attorney fees of approximately $5.4 million. This is due in part because the former manager has not been able to find work since he was terminated from his position at Wells Fargo.
"In addition to reinstating the employee and clearing his personnel file, Wells Fargo has been ordered to fully compensate him for lost earnings during his time out of the banking industry. Back pay, compensatory damages, and attorneys’ fees were together calculated at about $5.4 million. Wells Fargo also must post a notice informing all employees of their whistleblower protections under Sarbanes-Oxley, widely known as SOX," wrote OSHA when announcing the order.
According to a press release issued by OSHA, the employee reported the fraud incidents to Wells Fargo's ethics hotline. Following the report, the former manager was dismissed from his position. Wells Fargo allegedly told the employee that he had 90 days to find a new position, though he was unable to do so.
Wells Fargo has the right to appeal OSHA's order, which must occur through the Office of Administrative Law Judges. However, there's no word yet on whether or not OSHA will appeal the decision.
To learn more about this incident, check out the Department of Labor's (DOL) website here.
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