New York Governor Kathy Hochul recently signed legislation that expands one of the state’s whistleblower laws with significant revisions (“Amendments”) to NY Labor Law § 740 (“Section 740”). The Amendments increase coverage for workers who allege they have been retaliated against for reporting suspected employer wrongdoing. Taking effect on January 26, 2022, the Amendments broaden the scope of private-sector whistleblower protections[1] by expanding whistleblower protections outside the scope of health care fraud and reporting of health and safety concerns. The Amendments also expand the pool of individuals protected by Section 740, among other changes.
The Amendments make it much easier for individuals to bring a retaliation claim under Section 740.
Section 740 prohibits retaliatory action by employers against an employee who engages in any activity related to exposing an employer’s violation(s) of law or regulation. The Amendments expand the definition of “employee” under Section 740 to include former employees as well as independent contractors who “carry out work in furtherance of an employer’s business enterprise and who are not themselves employers.” Previously, the definition was limited to individuals who perform services “for and under the control and direction of an employer for wages or other remuneration,” implying that only current employees could bring a claim under Section...
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