Whistleblowing Settlement Agreement for the United States

Whistleblowing Settlement Agreement Template for United States

A legally binding agreement under U.S. federal and state laws that resolves whistleblowing claims between an individual who reported wrongdoing and the organization against which the allegations were made. The agreement typically includes settlement terms, confidentiality provisions (with explicit carve-outs for government reporting), releases of claims, and preservation of rights under various whistleblower protection laws including Sarbanes-Oxley, Dodd-Frank, and the False Claims Act.

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What is a Whistleblowing Settlement Agreement?

The Whistleblowing Settlement Agreement is utilized when resolving disputes arising from protected disclosures of alleged wrongdoing. This document is crucial in U.S. jurisdictions where multiple federal laws (including SOX, Dodd-Frank, and FCA) provide whistleblower protections. The agreement must carefully balance confidentiality requirements with preserved rights to report to government agencies, while providing clear terms for settlement payments, releases, and ongoing obligations. It's essential to comply with both federal and state-specific whistleblower protection laws.

What sections should be included in a Whistleblowing Settlement Agreement?

1. Parties: Identifies the whistleblower and the organization involved in the settlement

2. Background: Brief context of the whistleblowing matter and reason for settlement

3. Definitions: Key terms used throughout the agreement including 'Protected Disclosure', 'Claims', 'Settlement Payment'

4. Settlement Terms: Details of the settlement payment and payment schedule

5. Release of Claims: Scope of claims being released by both parties

6. Non-Admission of Liability: Statement that settlement does not constitute admission of wrongdoing

7. Confidentiality Obligations: Terms of confidentiality with explicit carve-outs for government reporting

8. Government Reporting Rights: Explicit preservation of rights to report to government agencies

What sections are optional to include in a Whistleblowing Settlement Agreement?

1. Non-Disparagement: Mutual obligations not to make negative statements about either party

2. Future Employment: Terms regarding future employment relationship if whistleblower is/was an employee

3. Tax Implications: Allocation of tax responsibilities for significant settlement amounts

4. OWBPA Compliance: Age discrimination specific provisions for whistleblowers over 40 years old

What schedules should be included in a Whistleblowing Settlement Agreement?

1. Payment Schedule: Detailed breakdown of payment terms and dates

2. Claims Summary: Summary of specific claims being settled

3. OWBPA Disclosure: Required age discrimination disclosures if applicable

4. Resignation Letter: Template resignation letter if settlement includes employment termination

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

United States

Publisher

Genie AI

Cost

Free to use
Industries

Sarbanes-Oxley Act (SOX): Federal law that protects corporate whistleblowers and prohibits waiver of rights to file SOX complaints. Must ensure settlement agreement doesn't restrict these rights.

Dodd-Frank Act: Provides whistleblower incentives and protections, including SEC whistleblower program provisions. Settlement must preserve rights to report to SEC and receive awards.

False Claims Act (FCA): Governs qui tam actions and contains anti-retaliation provisions. Settlement must address any potential qui tam claims and preserve reporting rights.

Industry-Specific Whistleblower Laws: Including Food Safety Modernization Act, Patient Protection and Affordable Care Act, and Energy Reorganization Act. Must be considered based on relevant industry.

Fair Labor Standards Act (FLSA): Federal employment law that includes whistleblower provisions. Settlement must preserve FLSA rights and reporting capabilities.

National Labor Relations Act (NLRA): Protects employees' rights to discuss working conditions. Settlement cannot restrict these protected communications.

Equal Employment Opportunity Laws: Including Title VII of the Civil Rights Act. Settlement must address any discrimination claims and preserve right to file EEOC charges.

SEC Rule 21F: Implements whistleblower provisions of Dodd-Frank Act. Settlement must comply with SEC rules on confidentiality and reporting rights.

State Whistleblower Laws: Varies by state but may provide additional protections. Settlement must comply with applicable state-specific whistleblower protection laws.

Older Workers Benefit Protection Act (OWBPA): If age-related claims involved, settlement must include specific provisions for valid waiver of age discrimination claims.

Confidentiality Requirements: Settlement must include carefully crafted confidentiality provisions that explicitly preserve right to report to government agencies.

Release of Claims: Must specifically identify claims being released while preserving non-waivable statutory rights to report to government agencies.

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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