Dodd Frank Wall Street Reform and Consumer Protection Act

Section 1057 of the Dodd-Frank Wall Street Reform
and Consumer Protection Act (DFA)
P.L. 111-203
Enacted July 21, 2010

§1057. EMPLOYEE PROTECTION.
(a) In General- No covered person or service provider shall terminate or in
any other way discriminate against, or cause to be terminated or
discriminated against, any covered employee or any authorized
representative of covered employees by reason of the fact that such
employee or representative, whether at the initiative of the employee or in
the ordinary course of the duties of the employee (or any person acting
pursuant to a request of the employee), has—
(1) provided, caused to be provided, or is about to provide or cause to
be provided, information to the employer, the Bureau, or any other
State, local, or Federal, government authority or law enforcement
agency relating to any violation of, or any act or omission that the
employee reasonably believes to be a violation of, any provision of this
title or any other provision of law that is subject to the jurisdiction of
the Bureau, or any rule, order, standard, or prohibition prescribed by
the Bureau;
(2) testified or will testify in any proceeding resulting from the
administration or enforcement of any provision of this title or any
other provision of law that is subject to the jurisdiction of the Bureau,
or any rule, order, standard, or prohibition prescribed by the Bureau;
(3) filed, instituted, or caused to be filed or instituted any proceeding
under any Federal consumer financial law; or
(4) objected to, or refused to participate in, any activity, policy,
practice, or assigned task that the employee (or other such person)
reasonably believed to be in violation of any law, rule, order, standard,
or prohibition, subject to the jurisdiction of, or enforceable by, the
Bureau.
(b) Definition of Covered Employee- For the purposes of this section, the
term `covered employee' means any individual performing tasks related to
the offering or provision of a consumer financial product or service.
(c) Procedures and Timetables(1) COMPLAINT-

(A) IN GENERAL- A person who believes that he or she has been
discharged or otherwise discriminated against by any person in
violation of subsection (a) may, not later than 180 days after
the date on which such alleged violation occurs, file (or have
any person file on his or her behalf) a complaint with the
Secretary of Labor alleging such discharge or discrimination and
identifying the person responsible for such act.
(B) ACTIONS OF SECRETARY OF LABOR- Upon receipt of such a
complaint, the Secretary of Labor shall notify, in writing, the
person named in the complaint who is alleged to have
committed the violation, of-(i) the filing of the complaint;
(ii) the allegations contained in the complaint;
(iii) the substance of evidence supporting the complaint;
and
(iv) opportunities that will be afforded to such person
under paragraph (2).
(2) INVESTIGATION BY SECRETARY OF LABOR(A) IN GENERAL- Not later than 60 days after the date of receipt
of a complaint filed under paragraph (1), and after affording the
complainant and the person named in the complaint who is
alleged to have committed the violation that is the basis for the
complaint an opportunity to submit to the Secretary of Labor a
written response to the complaint and an opportunity to meet
with a representative of the Secretary of Labor to present
statements from witnesses, the Secretary of Labor shall-(i) initiate an investigation and determine whether there
is reasonable cause to believe that the complaint has
merit; and
(ii) notify the complainant and the person alleged to have
committed the violation of subsection (a), in writing, of
such determination.
(B) NOTICE OF RELIEF AVAILABLE- If the Secretary of Labor
concludes that there is reasonable cause to believe that a
violation of subsection (a) has occurred, the Secretary of Labor
shall, together with the notice under subparagraph (A)(ii), issue
a preliminary order providing the relief prescribed by paragraph
(4)(B).
(C) REQUEST FOR HEARING- Not later than 30 days after the
date of receipt of notification of a determination of the Secretary
of Labor under this paragraph, either the person alleged to have
committed the violation or the complainant may file objections
to the findings or preliminary order, or both, and request a

hearing on the record. The filing of such objections shall not
operate to stay any reinstatement remedy contained in the
preliminary order. Any such hearing shall be conducted
expeditiously, and if a hearing is not requested in such 30-day
period, the preliminary order shall be deemed a final order that
is not subject to judicial review.
(3) GROUNDS FOR DETERMINATION OF COMPLAINTS(A) IN GENERAL- The Secretary of Labor shall dismiss a
complaint filed under this subsection, and shall not conduct an
investigation otherwise required under paragraph (2), unless the
complainant makes a prima facie showing that any behavior
described in paragraphs (1) through (4) of subsection (a) was a
contributing factor in the unfavorable personnel action alleged in
the complaint.
(B) REBUTTAL EVIDENCE- Notwithstanding a finding by the
Secretary of Labor that the complainant has made the showing
required under subparagraph (A), no investigation otherwise
required under paragraph (2) shall be conducted, if the
employer demonstrates, by clear and convincing evidence, that
the employer would have taken the same unfavorable personnel
action in the absence of that behavior.
(C) EVIDENTIARY STANDARDS- The Secretary of Labor may
determine that a violation of subsection (a) has occurred only if
the complainant demonstrates that any behavior described in
paragraphs (1) through (4) of subsection (a) was a contributing
factor in the unfavorable personnel action alleged in the
complaint. Relief may not be ordered under subparagraph (A) if
the employer demonstrates by clear and convincing evidence
that the employer would have taken the same unfavorable
personnel action in the absence of that behavior.
(4) ISSUANCE OF FINAL ORDERS; REVIEW PROCEDURES(A) TIMING- Not later than 120 days after the date of conclusion
of any hearing under paragraph (2), the Secretary of Labor shall
issue a final order providing the relief prescribed by this
paragraph or denying the complaint. At any time before
issuance of a final order, a proceeding under this subsection
may be terminated on the basis of a settlement agreement
entered into by the Secretary of Labor, the complainant, and the
person alleged to have committed the violation.

(B) PENALTIES(i) ORDER OF SECRETARY OF LABOR- If, in response to a
complaint filed under paragraph (1), the Secretary of
Labor determines that a violation of subsection (a) has
occurred, the Secretary of Labor shall order the person
who committed such violation-(I) to take affirmative action to abate the violation;
(II) to reinstate the complainant to his or her
former position, together with compensation
(including back pay) and restore the terms,
conditions, and privileges associated with his or her
employment; and
(III) to provide compensatory damages to the
complainant.
(ii) PENALTY- If an order is issued under clause (i), the
Secretary of Labor, at the request of the complainant,
shall assess against the person against whom the order is
issued, a sum equal to the aggregate amount of all costs
and expenses (including attorney fees and expert witness
fees) reasonably incurred, as determined by the
Secretary of Labor, by the complainant for, or in
connection with, the bringing of the complaint upon which
the order was issued.
(C) PENALTY FOR FRIVOLOUS CLAIMS- If the Secretary of Labor
finds that a complaint under paragraph (1) is frivolous or has
been brought in bad faith, the Secretary of Labor may award to
the prevailing employer a reasonable attorney fee, not
exceeding $1,000, to be paid by the complainant.
(D) DE NOVO REVIEW(i) FAILURE OF THE SECRETARY TO ACT- If the Secretary
of Labor has not issued a final order within 210 days after
the date of filing of a complaint under this subsection, or
within 90 days after the date of receipt of a written
determination, the complainant may bring an action at
law or equity for de novo review in the appropriate district
court of the United States having jurisdiction, which shall
have jurisdiction over such an action without regard to
the amount in controversy, and which action shall, at the
request of either party to such action, be tried by the
court with a jury.
(ii) PROCEDURES- A proceeding under clause (i) shall be
governed by the same legal burdens of proof specified in

paragraph (3). The court shall have jurisdiction to grant
all relief necessary to make the employee whole,
including injunctive relief and compensatory damages,
including—
(I) reinstatement with the same seniority status
that the employee would have had, but for the
discharge or discrimination;
(II) the amount of back pay, with interest; and
(III) compensation for any special damages
sustained as a result of the discharge or
discrimination, including litigation costs, expert
witness fees, and reasonable attorney fees.
(E) OTHER APPEALS- Unless the complainant brings an action
under subparagraph (D), any person adversely affected or
aggrieved by a final order issued under subparagraph (A) may
file a petition for review of the order in the United States Court
of Appeals for the circuit in which the violation with respect to
which the order was issued, allegedly occurred or the circuit in
which the complainant resided on the date of such violation, not
later than 60 days after the date of the issuance of the final
order of the Secretary of Labor under subparagraph (A). Review
shall conform to chapter 7 of title 5, United States Code. The
commencement of proceedings under this subparagraph shall
not, unless ordered by the court, operate as a stay of the order.
An order of the Secretary of Labor with respect to which review
could have been obtained under this subparagraph shall not be
subject to judicial review in any criminal or other civil
proceeding.
(5) FAILURE TO COMPLY WITH ORDER(A) ACTIONS BY THE SECRETARY- If any person has failed to
comply with a final order issued under paragraph (4), the
Secretary of Labor may file a civil action in the United States
district court for the district in which the violation was found to
have occurred, or in the United States district court for the
District of Columbia, to enforce such order. In actions brought
under this paragraph, the district courts shall have jurisdiction
to grant all appropriate relief including injunctive relief and
compensatory damages.
(B) CIVIL ACTIONS TO COMPEL COMPLIANCE- A person on
whose behalf an order was issued under paragraph (4) may
commence a civil action against the person to whom such order
was issued to require compliance with such order. The
appropriate United States district court shall have jurisdiction,

without regard to the amount in controversy or the citizenship
of the parties, to enforce such order.
(C) AWARD OF COSTS AUTHORIZED- The court, in issuing any
final order under this paragraph, may award costs of litigation
(including reasonable attorney and expert witness fees) to any
party, whenever the court determines such award is
appropriate.
(D) MANDAMUS PROCEEDINGS- Any nondiscretionary duty
imposed by this section shall be enforceable in a mandamus
proceeding brought under section 1361 of title 28, United States
Code.
(d) Unenforceability of Certain Agreements(1) NO WAIVER OF RIGHTS AND REMEDIES- Except as provided under
paragraph (3), and notwithstanding any other provision of law, the
rights and remedies provided for in this section may not be waived by
any agreement, policy, form, or condition of employment, including by
any predispute arbitration agreement.
(2) NO PREDISPUTE ARBITRATION AGREEMENTS- Except as provided
under paragraph (3), and notwithstanding any other provision of law,
no predispute arbitration agreement shall be valid or enforceable to
the extent that it requires arbitration of a dispute arising under this
section.
(3) EXCEPTION- Notwithstanding paragraphs (1) and (2), an
arbitration provision in a collective bargaining agreement shall be
enforceable as to disputes arising under subsection (a)(4), unless the
Bureau determines, by rule, that such provision is inconsistent with
the purposes of this title.