Global Employment Law - Global News & Commentary on Labor and Employment Issues Worldwide

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In a landmark decision issued December 31, 2009, the U.S. Court of Appeals for the Fourth Circuit held that an individual bringing a whistleblower claim against his former employer has the right to pursue this action de novo in federal court - even after losing his case at the administrative level - because a final administrative decision was not issued within 180 days, contrary to statutory requirements.  In Stone v. Instrumentation Laboratory Co. (No. 08-2196, Dec. 31, 2009) (pdf), David Stone, a former employee of Instrumentation Laboratory Co. (ILC), alleged that he was fired in retaliation for complaining that his superiors were not accurately tracking, reporting, and paying certain administrative fees, which he believed impacted the accuracy of ILC's financial reporting to shareholders.  Pursuant to the Sarbanes-Oxley ("SOX") Act, Stone filed a retaliation claim with the Occupational Safety and Health Administration (OSHA).  OSHA filed its preliminary findings - which Stone objected to - more than 180 days after Stone filed his charge.  Stone then requested a hearing before an administrative law judge (ALJ).  The ALJ ultimately granted ILC's motion for summary decision, and Stone appealed to the Administrative Review Board (ARB).  Before the ARB considered the matter, Stone filed a notice stating his intent to file his case anew in federal court.  Once the matter was brought in federal district court, the judge dismissed the action, finding that the ALJ's dismissal of Stone's administrative complaint amounted to a final judgment on the merits, and that re-litigating the action would be wasteful.  Stone appealed this decision, and the Fourth Circuit sided with him, concluding that the express language of the SOX Act entitled him to de novo review in federal court.