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For years, insurance provider Health Net Inc. used illegal severance agreements to try to keep departing employees from talking to state and federal officials about company violations, the U.S. Securities and Exchange Commission said Tuesday. The Woodland Hills company agreed to pay a $340,000 penalty to settle the SEC’s allegations. It also agreed to contact former employees who had signed the severance agreements between Aug.12, 2011, and Oct. 22, 2015, and inform them that they were not prohibited from blowing the whistle about potential securities violations. (Petersen, 8/16)

The Securities and Exchange Commission continued its boosting of whistleblowers on Tuesday, penalizing another company for restricting the rights of outgoing employees. 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. (Rubenfeld, 8/16)