On Aug. 15, the U.S. Securities and Exchange Commission issued its second fine in six days to an employer for drafting severance agreements that restricted former employees from collecting awards as whistleblowers. The fines – totaling $605,000 between the two companies – signify a continued, distinct shift toward enforcing rules against employment agreements that impede the SEC’s whistleblower program.

Considering the SEC’s enforcement activities have generally lagged from last year’s record numbers, the Commission’s new focus may give company counsel a strong incentive to reevaluate any confidentiality provisions that seek to prevent the unauthorized disclosure of company information to law enforcement.

Originally published in The Texas Lawbook - September 2016.