New York Governor Kathy Hochul has signed S.B. 4394, an amendment of Section 740 to the New York Labor Law that dramatically expands safeguards against employer whistleblower retaliation. The new law expands protected activity that entitles an employee to whistleblower protection, the categories of covered workers protected by the statute, and the definition of prohibited retaliatory actions, among other changes. The new law takes effect on January 26, 2022. Some of the key provisions that New York employers should carefully review are listed below.
Whereas Section 740 presently only protects those employees who report violations of law that create and present a substantial and specific danger to the public health or safety, the new law provides that protected activity can relate to any practices or activities that the employee “reasonably believes” (i) violate any law, rule, or regulation; or (ii) pose a substantial and specific danger to public health or safety.
Under the current statute, retaliatory conduct is limited to “discharge, suspension or demotion of an employee, or other adverse employment action taken against an employee in the terms and conditions of employment.” The new law expands retaliatory conduct to include: (i) actual or threatened adverse employment actions, including discharge, suspension, or demotion, related to the terms and conditions of employment; (ii) actions or threats that would “...
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