New York Significantly Expands its Whistleblower Protections, Effective January 26, 2022
New York’s whistleblower law was recently amended to significantly expand the protections provided to workers, as well as increase the potential liability of employers for whistleblower claims. The amendment to the law takes effect January 26, 2022.
Under the current law, New York provides whistleblower protection to employees only for matters posing a “substantial and specific danger to the public health or safety, or which constitute health care fraud." Given the narrow scope of New York’s whistleblower law, whistleblower lawsuits have not been common in New York, with the exception of certain industries. The law, as amended, expands coverage to any matter an employee “reasonably believes is in violation of law, rule or regulation.” This is a significant expansion of the scope of the law as whistleblower claims will no longer require that the whistleblowing involve a matter of public health or safety to be entitled to protection. The amended law also increases the scope of individuals protected by the law to cover independent contractors, in addition to employees.
The amendment also increases the potential liability of an employer that violates the whistleblower law. In addition to compensatory damages and attorneys’ fees, employers will be subject to punitive damages and a civil penalty of up to $10,000.
Employers will be required to post a notice of employee rights in a conspicuous and easily accessible location in their workplaces.
Employers in New York should expect a significant increase in whistleblower claims, as businesses that were essentially previously excluded from the law will now fall within its scope. To reduce the risk of unforeseen liabilities, businesses with employees in New York should review their anti-retaliation policies and update those policies if necessary. Businesses should also train their supervisors to recognize and appropriately respond to potential whistleblowing activities.
If you have questions about New York’s amended whistleblower law or your business’s employment practices, please contact us at (201) 345-5412 / (646) 503-5358 or through our online scheduling system to schedule a complimentary consultation.
Information contained in this blog is provided for informational purposes and does not constitute legal advice or opinion. You should consult with an attorney regarding the specifics of your matter or legal issue.