Prohibits certain retaliatory personnel action by employers

Summary of specific provisions

Paragraph (a) an1ends section 740 of the labor law by limiting the "substantial and specific danger to public health or safety" requirement to only the disclosure of violations of rules and regulations.

Paragraph (a-1) adds a new sub-section to section 740 of the labor law that protects employees that disclose to a supervisor or public body activities, policies, or practices of their employer that violate the law.

Effects of present law which this bill would alter

The current law protects employees that disclose - to their supervisors or a public body - only those activities, policies, or practices of their employer that present a substantial and specific danger to the public health or safety.

This bill would amend the current law so it would protect the disclosure - to an employee's supervisor or a public body - of all activities, policies, or practices of an employer that violates the law.

However, the bill would retain the "substantial and specific danger to public health or safety" requirement for the disclosure of activities, policies, or practices of an employer to a supervisor or a public body that violate a rule or regulation.

Justification

Scandals such as Enron and at the New York Stock Exchange have spotlighted a recent trend of misconduct by businesses and organizations nationwide. As an attempt to prevent such scandals and ensure that the law is enforced, provisions must be taken to protect individuals who disclose information to the authorities about the illegal acts of their employers.

The present law protects only those disclosures that create and present a substantial and specific danger to the public health or safety. While this provision is important and necessary to the enforcement of rules and regulations, it fails to protect individuals that make good faith disclosures regarding illegal acts that do not pertain to public health or safety. This consequence only frustrates the purpose for such a law and restricts the enforcement of several laws designed to protect the people.

For example, the Court of Appeals denied an action by an employee, who alleged her employer was billing the City of New York for the services of employees that did not exist, because fraud does not involve a "substantial and specific danger to the public health or safety." REMBA V. FEDERATION EMPLOYMENT AND GUIDANCE SERVICE, 149 A.D.2d 131 (lst Dept. 1989), aff'd 76 N.Y.2d 801.

In addition, a mental health aide was not protected under the present law when she reported the rape of a patient to the authorities, because the act only affected the health and safety of a single individual and not the public at large. KERN V. DEPAUL MENTAL HEALTH SERVICES, INC., 139 Misc. 2d 970 (Monroe S.Ct. 1988), aff'd 152 A.D.2d 957 (4th Dept. 1989).

Furthermore, an action is in current litigation on behalf of two computer technicians who were fired from their jobs when they reported to police 150,000 images of child pornography that they had found on the computer of a New York Law School professor. While this matter has yet to be litigated, it is doubtful given past decisions that the present law will protect either employee.

Because of the law's limited application, employers can still seek retribution against their employees for disclosing information about many illegal act and/or practices without any recourse on behalf of the employee. This amendment is necessary to ensure that the laws of New York are enforced and the citizens who report these acts are protected.

Legislative history

S.2155 of 2008 02/01/08 Referred to Labor S.5975 of 2009 06/19/09 REFERRED TO RULES 01/06/10 REFERRED TO LABOR

Fiscal implications for state and local governments

None.

Effective date

This act shall take effect immediately.