A new staff accountant who works for Elderweyer Corporation signed a two-year employment contract.This contract states that it "shall be renewed annually,at a salary increase of 15%,as long as the employee has complied with all companies policies throughout the year." One such company policy states that "employees may not participate as informants,and not materially assist others as informants,under any whistleblower program that pays compensation for information that may lead to adverse consequences for Elderweyer Corporation." This company policy is:

Question

Quizplus · Accepted Answer

This company policy is not enforceable under any circumstances as it violates the whistleblower protections provided under the Sarbanes-Oxley Act. It is illegal for an employer to limit an employee's ability to provide information to the government regarding potential violations of securities laws, and any agreements or policies that attempt to do so are unenforceable. Therefore, the new staff accountant is free to participate in whistleblower programs and report potential violations of securities laws without fear of retaliation from Elderweyer Corporation.

A New Staff Accountant Who Works for Elderweyer Corporation Signed