SEC Targets Employer’s Anti-Whistleblower Agreement

The SEC has taken its first enforcement action targeting an employment agreement that the agency says improperly restricted whistleblowing. The company was Houston-based KBR Inc., the SEC action was a cease-and-desist order, and what’s particularly noteworthy and makes this a first, according to a Sidley Austin client update, is that the enforcement was based on the language of the agreement and not on any alleged company action. KBR acceded to the order and changed the agreement’s wording, without admitting or denying the charges.