On Oct. 28, 2021, Gov. [Kathy] Hochul signed legislation that significantly expands the scope of New York Labor Law Section 740 (NYLL 740), the state’s “whistleblower” protection law covering all private-sector employees. Most notably, beginning in January 2022, employees and independent contractors will be protected for reporting employer activity that they reasonably believe violates any law, regardless of whether the law relates to public safety or whether the activity was an actual violation.
Background
In general, employee whistleblower-protection laws like NYLL 740 prohibit employers from retaliating against workers who disclose illegal or improper actions by the employer. Prior to this amendment, NYLL 740 was relatively narrow. It protected only those employees who disclosed employer activity that violated a law relating to public health and safety or health-care fraud. This means that an employee who disclosed any other form of unlawful activity — such as consumer fraud or tax evasion, for example — had no protection from retaliation under NYLL 740. The existing law did not cover independent contractors. Courts also had held that NYLL 740 required proof of an actual violation of law in order for the employee to sustain a cause of action.
Coming changes to NYLL 740
The most significant changes are that independent contractors will be covered by the law and that employees will be protected if they disclose activity that they reasonably believe violates any law —...
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