Monique King, Lutecia Butler, Pola Jaramillo, Vernice Cunningham University of Phoenix
Catherine Zulfer, a former employee of playboy filed a suit against them alleging that Playboy Enterprises violated provisions of the Sarbanes-Oxley Act of 2002. The former employee reports that playboy retaliated against her for refusing to participate in fraudulent activity against Playboy’s shareholders (Katz, Marshall& Banks, LLP, 2013). Without receiving permission from the board of directors, Christopher Pachler, Chief Financial Officer, instructed Zulfer to gather one million dollars in bonuses for various corporate officers of the company. At that time Zulfer felt that Pachler was attempting to embezzle the money from the company, therefore she denied the request until it was approved by the board. Zulfer then informed Playboys General Counsel and the Securities and Exchange Commission of the request that was made by Pachler. Soon after Zulfer made the report, she claims that retaliation against her began. She was excluded from company meetings and discussions, crucial information to her position was withheld from her, and her accounting staff was diminishing (Katz, Marshall & Banks, LLP, 2013). On December 31, 2011 Zulfer was terminated, although Playboy describes it as a layoff. Issue: Did Playboy violate the whistleblower-protection provisions of the Sarbanes-Oxley Act of 2002 (“SOX”)? Rule: The Playboy Company retaliated against Zulter for refusing to participate in fraud regarding the playboy shareholders. Under the Sarbanes-Oxley Act of 2002, (SOX) one rule prohibits any employer from retaliation against and employee. Another rule is that under this law employees are protected when they speak of a wrongdoing within the workplace. “Under SOX, employers are strictly prohibited from retaliating against employees who report illegal or unethical conduct. ...