The Securities and Exchange Commission continued its boosting of whistleblowers on Tuesday, penalizing another company for restricting the rights of outgoing employees, the Wall Street Journal reported today. Insurance provider Health Net Inc., the SEC said, violated securities law by taking away the ability to file applications for whistleblower awards from departing employees who wanted to receive severance payments. Without admitting or denying the SEC’s findings, Health Net agreed to pay a $340,000 penalty, the SEC said. Representatives for the company didn’t immediately respond to requests for comment. The SEC’s action against Health Net is the second case in six days, and the third in about a year, concerning the restriction of potential whistleblowers.
