New York State recently enacted legislation amending and significantly expanding whistleblower protections under § 740 of the New York Labor Law. The amended law, effective as of January 26, 2022, prohibits an employer from retaliating against any employee who discloses, or threatens to disclose, an activity, policy or practice that the employee “reasonably believes” is in violation of law, rule or regulation or that the employee “reasonably believes” poses a substantial and specific danger to the public.

Under prior law, Section 740 was far more restrictive and required proof of an actual violation of law that created and presented a substantial danger to public health or safety, or constituted healthcare fraud.

In addition to expanding employee protected activity, the amendment expands the scope of retaliatory action to specifically include:

1. Actual or threatened adverse employment actions (such as termination, demotion or suspension)
2. Threats against a former employee’s current or future employment and
3. Threatening to contact or contacting immigration authorities.

The amended law extends whistleblower protections to independent contractors and former employees and provides that Section 740 protects employees whether or not they are acting within the scope of their job duties. It also clarifies that “law, rule or regulation” includes executive orders as well as judicial or administrative decisions.

Other changes include a lengthened statute of limitation (from one to two...

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