New York law protects employees who report illegal or unsafe conduct by their employers. These “whistleblower” protections are designed to encourage workers to speak up when they witness violations of law without fear of retaliation.
If an employer fires, demotes, suspends, or otherwise penalizes an employee for engaging in protected whistleblowing activity, the employee may have a legal claim, potentially exposing the employer to significant liability.
New York Whistleblower Laws
New York provides whistleblower protections for private-sector employees, healthcare workers, and public employees under separate statutes.
New York Labor Law § 740 (General Employee Protection)
New York Labor Law § 740 prohibits employers from taking retaliatory action against employees who:
- Disclose or threaten to disclose to a supervisor or public body an employer’s activity, policy, or practice that violates a law, rule, or regulation and presents a substantial and specific danger to public health or safety, or constitutes healthcare fraud;
- Provide information or testify before a public body investigating such violations; or
- Object to or refuse to participate in unlawful activities.
Importantly, in most cases, the employee must first report the violation to a supervisor and provide the employer with a reasonable opportunity to correct the issue before reporting externally.
New York Labor Law § 741 (Healthcare Whistleblowers)
Section 741 provides additional protections for healthcare employees who report improper quality of patient care.
Healthcare workers are protected if they:
- Disclose or threaten to disclose practices they reasonably believe constitute improper patient care; or
- Object to or refuse to participate in such practices.
This section requires only a good faith, reasonable belief that improper care occurred. Employees must generally report concerns internally first unless the situation presents an imminent threat to public health or patient safety or internal reporting would be futile.
New York Civil Service Law § 75-b (Public Employees)
Public employees are protected under Civil Service Law § 75-b if they report information they reasonably believe to be true regarding violations that create a substantial and specific danger to public health or safety.
As with other statutes, the employee typically must make a good faith effort to notify the employer before escalating the report, unless there is imminent danger.
Remedies for Retaliation
An employee who experiences retaliation for protected whistleblowing may file a civil action seeking:
- Reinstatement
- Back pay and lost benefits
- Restoration of seniority and fringe benefits
- Injunctive relief
- Attorneys’ fees and costs
Courts may also award attorneys’ fees to employers if a claim is found to be without merit.
Federal Whistleblower Protections
In addition to New York law, several federal statutes protect whistleblowers, including:
- The Sarbanes-Oxley Act (corporate fraud)
- The Occupational Safety and Health Act (workplace safety)
- The False Claims Act (fraud involving government funds)
These laws prohibit retaliation against employees who report corporate misconduct, unsafe working conditions, environmental violations, or fraud against the government.
Protecting Your Rights
For Employees: If you believe you have been retaliated against for reporting unlawful conduct, document everything. Maintain copies of complaints, emails, disciplinary actions, and performance evaluations. Timing and documentation are often critical in whistleblower cases.
For Employers: Employers should carefully document internal investigations and corrective actions. If disciplinary measures are taken against an employee who previously made a complaint, there must be a legitimate, well-documented, non-retaliatory reason for the action.
Because whistleblower claims can be complex and highly fact-specific, early legal guidance is essential.
Speak With a Whistleblower Attorney
Whether you are considering bringing a whistleblower claim or defending against one, experienced legal counsel can help you understand your rights and obligations under New York law. Romano Law represent both employees and employers in whistleblower matters and retaliation claims. Contact Romano Law today to schedule a consultation.
Contributions to this blog by Kennedy McKinney.