New York has enacted legislation significantly expanding whistleblower protections under Section 740 of the New York Labor Law. The amendments eliminate many of the narrow purposes originally established for Section 740, and will now provide employees, former employees, and independent contractors a wider range of claims to pursue against companies. The amended law goes into effect on January 26, 2022.
Summary of Amendments to Whistleblower Law
Expands Scope of Protected Activity
The amended law will prohibit an employer from taking a retaliatory action against an employee who discloses or threatens to disclose to a supervisor or public body an activity, policy, or practice of the employer that:
(i) The employee reasonably believes is in violation of any law, rule, or regulation; or
(ii) The employee reasonably believes poses a substantial and specific danger to the public health or safety.
The law does not define the meaning of "reasonably believes." However, when analyzing similar language under New York's whistleblower law for public employees, at least one New York court has examined whether an employee has shown a "good faith, reasonable basis" for their belief that a violation has occurred.
The amended law's legislative history states that the current law provides an employee protection only if they disclose to a supervisor or public body an unlawful activity, policy, or practice of the employer that creates and presents a substantial danger to the public health or...
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