Sarbanes-Oxley Act (2002)

When the Sarbanes-Oxley Act (SOX) was enacted in 2002, corporate America was still reeling from major scandals like Enron and WorldCom. At Barrett Johnston, we see this law as a key turning point in how whistleblowers were viewed—not as troublemakers, but as vital defenders of financial integrity and public trust.

The Sarbanes-Oxley Act introduced sweeping reforms to corporate accountability. It required CEOs and CFOs to personally certify the accuracy of financial reports, increased criminal penalties for fraud, and, crucially, created the first broad federal whistleblower protections in the private sector.

Under SOX, employees of publicly traded companies cannot be retaliated against for reporting fraud or violations of securities laws. This protection became a model for later legislation that expanded to other industries, including healthcare.

While SOX primarily targets corporate fraud, its spirit resonates strongly in healthcare whistleblower law. Fraudulent billing, false reporting, and financial misrepresentation in healthcare settings often echo the same ethical breaches that SOX was designed to expose.

We view Sarbanes-Oxley as a landmark not just in corporate reform, but in the cultural acceptance of whistleblowing as a public good. It demonstrated that protecting employees who speak up is an investment in institutional integrity—whether in finance or healthcare.