Expansion of New York Whistleblower Protection Laws

In late 2021, Governor Kathy Hochul recently signed legislation that amends Section 740 of the New York Labor Law (“Section 740”) to dramatically expand whistleblower protections in New York. 

• Expansion of protections to include former employees and independent contractors. Prior to the amendment, Section 740 only protected “employees,” defined to mean “an individual who performs services for and under the direction and control of an employer for wages or other remuneration.” 

• The amendments expressly state that former employees or “natural persons employed as independent contractors” are included within the definition of a covered employee. 

• Under the amendments, protected activity now includes a report or threat to report an action, policy, or practice by the employer that the employee reasonably believes: (i) violates any federal, state, or local law, rule, or regulation; or (ii) poses a substantial and specific danger to the public health or safety. The employee can make (or threaten to make) such reports to any federal, state, or local court, agency, law enforcement officer, or executive branch. The amendments make clear that the employee is protected even if such reporting is outside of the scope of his or her employment duties. 

• Moreover, the employee is protected even if the employee incorrectly believed the employer’s actions to constitute a violation of the law, so long as the employee’s belief in that regard was reasonable.