Introduction
New York employers should brace for the significant expansion of the whistleblower protections set out in section 740 of the New York Labor Law (S.4394A/A.5144A), which was signed into law in October 2021 by Governor Kathy Hochul.
These sweeping changes should prompt businesses to review and/or revise their whistleblower policies and train supervisors on what to do when an employee makes a complaint that improper activity has occurred or is taking place, before the law takes effect on 26 January 2022.
Until now, New York's whistleblower employment protections in section 740 were limited to actual violations of a law, rule or regulation that resulted in a specific, substantial danger to public health or safety or constituted healthcare fraud. As of 26 January 2022, section 740 will expand greatly in both its scope and application. The new law will now be substantially similar to the broad protections afforded to employees under New Jersey's Conscientious Employee Protection Act (CEPA), which is generally considered one of the nation's most expansive whistleblower protection laws.
Upcoming changes
Once these amendments to section 740 are effective, New York whistleblower protection will encompass not only employees who report violations of a law, rule or regulation, but also employees who report, object to, refuse to participate in, disclose or participate in an investigation into an employer's activity, policy or practice that the individual reasonably believes...
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