The U.S. Occupational Safety and Health Administration (OSHA) has ordered San Francisco-based Wells Fargo NA to compensate a whistleblower US$5.4 million and to reinstate him immediately
The former bank manager had reported suspected fraud at the bank to his superiors and to a bank ethics hotline. After reporting his suspicions in this case, the employee, whose identity is protected under whistleblower laws, was terminated. (The case is not related to the phantom account scandal that has dogged the bank in recent months.)
OSHA’s investigation concluded that his “whistleblower activity, which is protected under the Sarbanes-Oxley Act, was at least a contributing factor in his termination.”
As a result, the agency ordered that the former manager be reinstated and that he be compensated for lost earnings and other costs incurred during his time out of the banking industry. The back pay, compensatory damages and attorneys’ fees that the whistleblower is entitled to receive totals approximately US$5.4 million, which represents the largest whistleblower award ever the OSHA has ordered.
In addition, Wells Fargo is also required to post a notice informing employees of their whistleblower protections under Sarbanes-Oxley. OSHA notes that Wells Fargo can appeal the order.