Thanks to recently adopted amendments to New York State Labor Law Section 740 (effective January 26, 2022), that greatly expand the scope of the protections provided to employees under that law, New York nonprofits will be required to start the new year in high gear when it comes to compliance. If you haven’t read Bond attorney Jane Sovern’s recent overview of the law, you can find it here. Here are links to the old and new laws, as well as a redlined version.
While the law applies to all employers, it has an immediate impact on nonprofits that have been required to have whistleblower policies under Not-for-Profit Corporation Law Section 715-b (i.e., all nonprofits with 20 or more employees and over $1 million in revenue). More specifically, the standards and requirements of the amendments to Labor Law Section 740 do not align neatly with those of Not-for-Profit Corporation Law Section 715-b, which was typically the main compliance focus in policy drafting in the past. You can find that statute here.
The following are examples of updates that will be needed for policies to comply with both Not-for-Profit Corporation Law Section 715-b and Labor Law Section 740:
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