New York employers, take heed: sweeping expansions to New York Labor Law (NYLL) Section 740 have fundamentally redefined the protections afforded to whistleblowers within the state. The revised law took effect on January 26, 2022, opening the door to a potential deluge of whistleblower claims against employers.

Notable changes to Section 740 include the following:

• Broadened coverage: Coverage under the revised law has been expanded by defining “employees” to include not just individuals who are currently employed by the employer, but also former employees and independent contractors. Relatedly, the amended law removes a former employer defense where an individual was an independent contractor.
• Drastically expanded protections for employees: Previously, the law prohibited employers from taking retaliatory action against an employee for disclosing or threatening to disclose an activity, policy or practice of the employer that violated a “law, rule or regulation” which created and presented a “substantial and specific danger to the public health or safety[.]”

The new revisions clarify that employers shall not retaliate against an employee – whether or not the employee is acting within the scope of his or her duties – if the employee “reasonably believes” the employer’s activity, policy or practice violates a law, rule or regulation, or that there is a substantial and specific danger to the public health or safety. In other words, these revisions take away an employer’s...

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