WHISTLEBLOWER RETALIATION IN NEW YORK: WHAT EMPLOYEES NEED TO KNOW

New York City is home to nearly 30,000 unique companies, including close to 10% of all Fortune 500 headquarters.  Why does this matter? Because the sheer volume of employers means that millions of New Yorkers are potentially exposed to workplace misconduct—and at risk for retaliation if they speak out. As a result, strong and enforceable whistleblower protections are not just important—they're essential.

What makes retaliation even more difficult to address is that many employees don’t realize they’ve “blown the whistle” until after they experience an adverse employment action. As a result, they often accept their employer’s explanation at face value—unaware that their prior complaint or objection may have triggered unlawful retaliation.

Fortunately, with nearly $20,000,000 in whistleblower settlements alone, Arcé Law Group, P.C. has successfully navigated these complex challenges on behalf of its clients, establishing itself as a trusted leader in whistleblower retaliation law. Below are some frequently asked questions from clients seeking guidance after facing workplace issues.

Does New York have a whistleblower law?

Yes.  New York Labor Law (“NYLL) § 740 is New York’s private-sector whistleblower protection statute. 

Has New York’s whistleblower law changed?

Yes.  Initially, the statute’s protections were much more limited, in that employees were only protected if:

1. They disclosed or refused to participate in actual violations of laws, rules, or regulations; 
2. The violation presented a substantial and specific danger to public health or safety; and
3. Allegations were not just based on internal policy violations, ethical concerns, or non-dangerous misconduct. 

However, on October 28, 2021, Governor Kathy Hochul signed an amendment to this statute, significantly expanding whistleblower protections for private-sector employees and independent contractors. The amendment broadened the scope of the law in several key areas, including: (1) an expanded definition of who qualifies as a protected employee, (2) a wider range of protected activities, (3) a more inclusive understanding of what constitutes retaliation, (4) an extended statute of limitations, and (5) increased remedies available to whistleblowers who experience retaliation.  The amendment also includes a posting requirement, mandating that employers display notices outlining employees’ protections, rights, and obligations under the statute. 

What does the newest version of New York’s whistleblower law say?

NYLL § 740 now prohibits employers from taking any retaliatory action against an employee, whether or not within the scope of the employee’s job duties, because such employee:

1. discloses, or threatens to disclose to a supervisor or to a public body an activity, policy or practice of the employer that the employee reasonably believes violates a law, rule, or regulation or that the employee reasonably believes poses a substantial and specific danger to the public health or safety; 
2. provides information to, or testifies before, any public body conducting an investigation, hearing, or inquiry into any such activity, policy, or practice by such employer; or 
3. objects to, or refuses to participate in any such activity, policy, or practice.

What does “private sector” mean under New York’s whistleblower law?

For purposes of NYLL § 740, the term “private sector” includes all private businesses, nonprofits, and corporations, regardless of size or industry. The statute applies broadly to all private-sector employers and extends protections to current and former employees, as well as independent contractors.

Who are the most typical whistleblowers?

At Arcé Law Group, P.C., the bulk of our NYLL § 740 whistleblower cases originate with employees at or near the executive level—individuals with broad access to internal operations and a strong ethical drive. These typically include:

• C-Suite & Senior Executives: CEO, COO, CFO, CCO, CHR, CPO
• Upper Management: EVP, SVP, VP, managing directors, senior directors
• Other Leadership Roles: various managerial positions

Our experience shows that employees in these roles are often the first to observe misconduct and feel compelled to act. Their close proximity to sensitive information gives them a unique vantage point—and legal protection—when they stand up under NYLL § 740.   However, it’s vital to remember that NYLL § 740 protects all employees, not just senior staff.  The shields anyone who discloses or objects to practices they reasonably believe are illegal or hazardous—even if they’re not in a leadership role. At Arcé Law Group, P.C., we’re proud to also have represented numerous non‑managerial employees—staff on the front lines—who, upon witnessing wrongdoing, reported it and invoked Section 740 protections with equal vigor.

What qualifies as a whistleblower complaint?

Under NYLL § 740, a whistleblower complaint is protected when an employee discloses, objects to, refuses to participate in, or reports either (a) an actual or suspected violation of a federal, state, or local law, rule, or regulation, or (b) conduct the employee reasonably believes poses a substantial and specific danger to public health or safety. Notably, the complaint does not need to be in writing, submitted to Human Resources, or follow any formal process. It is sufficient if the employee communicates the concern—even verbally—to a supervisor or other appropriate authority within the organization.

What constitutes retaliation under New York’s whistleblower law?

NYLL § 740 broadly defines retaliation to include any adverse action taken by an employer because an employee or independent contractor engaged in protected whistleblowing activity.  Some examples of adverse action include, but are not limited to:

• Termination
• Demotion or loss of responsibilities
• Reduction in pay, hours, or benefits
• Negative performance evaluations
• Disciplinary actions such as suspension or written warnings
• Harassment or creation of a hostile work environment
• Threats or intimidation
• Blacklisting or damaging the employee’s reputation
• Refusal to hire or rehire
• Constructive discharge (forcing the employee to resign)
• Any action that would dissuade a reasonable employee from engaging in protected activity

How can employees or independent contractors best protect themselves under New York’s whistleblower law?

There are several practical steps employees and independent contractors can take to protect themselves under NYLL § 740:

1. Be Specific: When raising a complaint, clearly identify the law, rule, or regulation that you reasonably believe has been violated. Specificity strengthens the legal protections afforded under the statute. 
2. Put It in Writing: While not legally required, submitting complaints in writing is strongly recommended. Written complaints create a clear, time-stamped record of the concern and minimize ambiguity about the nature of the report.
3. Report Retaliation Promptly: If you believe you are experiencing retaliation, document that belief—ideally in writing—and report it to a supervisor, HR, or another appropriate party. Timely reporting helps establish a clear connection between the protected activity and the adverse action.

Maintaining consistent and well-documented communications is a key safeguard under the statute. It not only reinforces credibility but also provides critical evidence if legal action becomes necessary.

Do employees or independent contractors require a certain job title to be a whistleblower under New York’s whistleblower law?

No. While many whistleblowers tend to be executives with heightened knowledge of how their organizations operate, the law protects all employees or independent contractors who work in the private sector, regardless of their title, pay, industry, scope of employment, seniority, or the size of their employer.