Effective this week, Section 740 of the New York Labor Law has been amended to provide significantly greater protection from retaliation for individuals – including independent contractors – who raise concerns of employer wrongdoing. Prior to the amendment, employees were protected from retaliation only for reporting internally or externally actual violations of law involving (1) “a substantial and specific danger to the public health or safety;” or (2) healthcare fraud. Now, whistleblower protections are available to both employees and independent contractors who raise concerns about any activity, policy or practice that they reasonably believe violates any law, rule or regulation. Proof of an actual violation of law is no longer necessary, and violations need not relate to public health or safety. All that is required is a reasonable belief that a violation of any law has occurred. The amendment also expands the potential remedies available to litigants under the statute.

Independent Contractors and Former Employees Specifically Protected

The definition of “employee” under section 740(a) has been expanded to include “former employees” and “natural persons employed as independent contractors . . . who are not themselves employers.” The expansion of protections to cover both independent contractors and former employees sets New York’s law apart from many other state whistleblower statutes.

Protected Activities Expanded

Under the amended statute, employers may not take...

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