New York Whistleblower Laws

New York whistleblower laws protect employees that speak up at work. Whistleblowers play a key role in keeping workplaces safe by exposing fraud, waste, or corruption that affects New Yorkers. Without these protections, workers who report problems could face unsafe conditions, retaliation, and other serious risks.

Recent updates to New York whistleblower laws give workers even stronger protections. The new rules make it easier to file retaliation claims and extend protections to more employees who report suspected misconduct.

What Qualifies as a Whistleblower Complaint?

A whistleblower complaint is when an employee reports violations of laws, rules, or regulations at work that could harm public health or safety. Complaints can be about a variety of issues, such as financial fraud, regulatory breaches, unsafe working conditions, or environmental risks. Under New York State law, an employee’s complaint is protected if they reasonably believe that the activity reported is illegal and poses serious risk to the public.

New York Protections for Whistleblowers

Federal protections establish baseline safeguards against whistleblower retaliation, mainly through laws like Sarbanes-Oxley and Dodd-Frank, but they have limited scope and shorter filing deadlines than state laws.

Significantly stronger New York whistleblower laws were recently enacted through New York Labor Law Section 740 amendments. Key expansions protect:

• Employees reporting violations to any public body
• Household members from retaliatory personnel action
• All workers regardless of suspected citizenship status
• Independent contractors and former employees

Local law in NYC adds municipal-specific protections through Administrative Code Section 12-113. This expands coverage to city employees and contractors who report workplace violations.

The enhanced New York city whistleblower laws address several critical needs:

• Growing complexity of workplace issues: Modern workplaces face complex regulatory requirements and ethical challenges that require stronger protections for those who speak up.
• Historical gaps in protection: Previous whistleblower statutes had significant limitations, including narrow definitions of protected activities, restrictive notification requirements, and limited remedies for retaliation.
• Corporate accountability: Recent high-profile corporate misconduct cases highlight the need for stronger whistleblower protections to encourage reporting of wrongdoing.

7 Ways New York Enhanced Protections for Whistleblowers 

New York recently expanded whistleblower laws to better support employees who report wrongdoing. Here’s what’s changed:

1. Who’s Protected

Extended to former employees. The law only used to protect current employees. After the amendments, the definition of an “employee” is now “an individual who performs services for and under the control and direction of an employer for wages or other remuneration, including former employees, or natural persons employed as independent contractors to carry out work in furtherance of an employer’s business enterprise who are not themselves employers.”

2. What’s Protected

Reasonable belief of a violation. Employees were only protected for reporting an actual violation, but now they are covered if they reasonably believe that the issue poses a substantial and specific danger to public health or safety.

“Law, rule, or regulation” was amended to include federal, state, and local statutes and executive orders; rules or regulations promulgated under statutes or executive orders; and judicial or administrative decisions. 

Protections have been expanded for those testifying before government bodies, including executive branches. 

3. What Counts as Retaliation

Expanded what is retaliatory conduct. Labor Law § 740 expanded the meaning of “retaliatory action” to any “adverse action taken by an employer or his or her agent to discharge, threaten, penalize, or in any other manner discriminate against” a whistleblower, even if the action is not related to the individual’s employment.

The following are now considered retaliatory conduct:

1. adverse employment actions or threats to take such adverse employment actions against an employee in the terms of conditions of employment, including but not limited to discharge, suspension, or demotion; 
2. actions or threats to take such actions that would adversely impact a former employee’s current or future employment; and 
3. threatening to contact U.S. immigration authorities related to the citizenship or immigration status of an employee or their family member.

4. Statute of Limitations

Extended the time to file. The statute of limitations for filing a whistleblower claim in New York has been extended from one year to two years. The period starts on the date the employee learned of the retaliatory action. In cases of continuing violations, the statute of limitations begins on the date of the most recent retaliatory action. The extension provides whistleblowers with more time to come forward and seek legal protection.

5. Expanded Legal Remedies

Removed limitations on remedies. The law previously limited a whistleblower’s remedies to injunctive relief; reinstatement; compensation for lost wages, benefits, other remuneration; and reasonable costs.

Now, individuals may also pursue a jury trial, front pay instead of reinstatement, and civil penalties up to $10,000.

In cases of willful, malicious, or wanton violations, punitive damages may be awarded.

In addition, an employer may be entitled to attorneys’ fees if a court determines the employee’s claim was not based in law or fact.

6. Notification Requirements

Modified the requirement of employer notification. The former law required a whistleblower to notify their employer of the violation and provide a reasonable opportunity to remedy the situation. This requirement has been amended to require employees to make a “good-faith effort.” 

However, there are five exceptions where employer notification is not required:

1. There’s an imminent public health or safety risk.
2. Reporting to the employer may lead to evidence being destroyed.
3. The welfare of a minor is at risk.
4. The whistleblower fears physical harm.
5. The supervisor is aware of the issue, but has taken no action.

7. Posting Requirements

Employee Notification. New York Whistleblower laws mandate that employers inform employees of their rights under the whistleblower protection laws. Notices must be displayed in visible areas, such as break rooms, near time clocks, or on company bulletin boards.

Schedule your whistleblower consultation today.

Key Takeaways

• Protection from whistleblower retaliation now covers former employees and independent contractors with “reasonable belief” of violations being sufficient for protection.
• Employees can report potential violations directly to any public body without notifying their employer first.
• Employers must create or update whistleblower policies to comply with Labor Law § 740 amendments.
• Whistleblowers are crucial watchdogs against workplace corruption, fraud, and illegal business practices.

Get In Touch With Our New York Employment Lawyers

At Ottinger, our New York employment lawyers have extensive experience handling whistleblower cases and can help protect you against retaliatory personnel action.

Contact us for a confidential consultation to discuss your whistleblower case and learn about your legal options for reporting workplace violations.

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Robert Ottinger, Esq.

Robert Ottinger is an employment attorney who focuses on representing executives and employees in employment disputes. Before starting his firm, Robert slugged it out in courtrooms trying cases for the government. Robert served as a Deputy Attorney General for the California Department of Justice in Los Angeles and then as Assistant Attorney General for the New York Attorney General’s Office in Manhattan.

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