The U.S. District Court for Connecticut has ordered Competitive Technologies,
Inc. (CTI) of Fairfield, Connecticut, to reinstate, pending the outcome of litigation,
two men who claimed they were fired for whistleblower activities protected by
the Sarbanes-Oxley Act of 2002.
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Download NowOSHA says it is first federal court decision enforcing a preliminary reinstatement
order under the act.
In a press release, the company said it is evaluating its options for filing
a stay of the decision.
In September 2003, Scott Bechtel and Wil Jacques complained to OSHA, alleging
that CTI had fired them in June 2003 because they raised concerns about financial
disclosures in the preceding six months. OSHA investigated the complaints and
issued its findings on February 2, 2005. The agency ordered CTI to reinstate
the men to their jobs and pay them back wages and benefits.
CTI filed an objection to OSHA's findings with the Labor Department's Office
of Administrative Law Judges and requested a stay of the reinstatement order.
An administrative law judge denied both that request and a subsequent request
for reconsideration.
On April 18, the Labor Department, along with Bechtel and Jacques, petitioned
the U.S. District Court in New Haven, asking the court to enforce the reinstatement
order. On May 13, Judge Alfred V. Covello ordered CTI to temporarily reinstate
Bechtel and Jacques retroactive to February 2, 2005, and to compensate them
for lost income and benefits from that date forward. The litigation about the
underlying case is pending before a Department of Labor administrative law judge.
Sarbanes-Oxley, formally known as the Corporate and Criminal Fraud Accountability
Act, provides employees the opportunity to file a complaint with OSHA if an
employer retaliates against them for reporting suspected corporate fraud or
other activities related to fraud against shareholders. If OSHA determines after
an investigation that an employee's complaint has merit, it can order remedies
such as reinstatement and back pay. Either party has 30 days to file objections
or request a hearing on the matter with the Labor Department's Office of Administrative
Law Judges.