What's happening
This bill expands whistleblower protections to cover disclosures about violations or circumventions of internal company controls intended to prevent fraud.
Why it matters
Broadens the scope of protected whistleblower activity. to include not just violations of law or threats to public safety, but also disclosures about attempts to bypass or violate internal company controls designed to prevent fraud—potentially capturing a wider array of misconduct.
Empowers employees to report on internal issues. (such as accounting or compliance control failures) that may not be illegal yet but could be early warning signs of fraud or ethical breaches, thus encouraging earlier intervention and promoting corporate accountability.
Applies protections retroactively to January 1, 2018. , potentially allowing employees who faced retaliation for reporting on internal controls or suspected fraud during this period to seek remedies, which could lead to renewed legal claims or reviews of past disciplinary actions.
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Who cares
Employees reporting suspected fraud
The bill would protect employees from retaliation for disclosing or threatening to disclose conduct they reasonably believe is fraudulent to a supervisor or public body.
Companies and their managers
The bill would prohibit retaliation against employees who report violations of, or attempts to circumvent, company controls designed to prevent fraud.
Employees with retaliation claims dating to 2018
The bill would deem its new protections and section one of the 2021 whistleblower law effective on and after January 1, 2018.
Headline styles
Protect Whistleblowers from Retaliation
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to labor
- Referred to labor
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
502
2025-2026 Regular Sessions
IN SENATE (Prefiled)
January 8, 2025
Introduced by Sen. PALUMBO -- read twice and ordered printed, and when printed to be committed to the Committee on Labor
AN ACT to amend the labor law, in relation to the prohibition on retaliatory action by employers against whistleblowers; and to amend chapter
522 of the laws of 2021 amending the labor law relating to retaliatory actions by employers, in relation to the effectiveness of such provisions
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision 2 of section 740 of the labor law, as amended by chapter 522 of the laws of 2021, is amended to read as follows:
2. Prohibitions. An employer shall not take any retaliatory action against an employee, whether or not within the scope of the employee's job duties, because such employee does any of the following:
(a) 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 is in violation of law, rule or regulation or that the employee reasonably believes poses a substantial and specific danger to the public health or safety;
(b) 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
(c) objects to, or refuses to participate in any such activity, policy or practice; or
(d) discloses, or threatens to disclose to a supervisor or to a public body any action or activity that is a violation of, or an attempt to circumvent, any of a company's internal controls implemented to prevent fraud, or which the employee reasonably believes to be fraudulent.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02116-01-5
§ 2. Section 3 of chapter 522 of the laws of 2021 amending the labor law relating to retaliatory actions by employers, is amended to read as follows:
§ 3. This act shall take effect on the ninetieth day after it shall have become a law; provided, however, that section one of this act shall be deemed to have been in full force and effect on and after January 1, 2018; and provided further that effective immediately, the addition, amendment and/or repeal of any rule or regulation necessary for the implementation of this act on its effective date are authorized to be made by the commissioner of labor of the state of New York on or before such effective date.
§ 3. This act shall take effect immediately; provided that section one of this act shall be deemed to have been in full force and effect on and after January 1, 2018.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the labor law, in relation to the prohibition on retali- atory action by employers against whistleblowers; and to amend chapter 522 of the laws of 2021 amending the labor law relating to retaliatory actions by employers, in relation to the effectiveness of such provisions
Purpose
To prohibit retaliatory action against certain employees.
Summary of provisions
Section 1. Subdivision 2 of section 740 of the labor law, as amended by chapter 522 of the laws of 2021, is amended to read as follows:
(d) discloses, or threatens to disclose to a supervisor or to a public body an action or activity that is a violation of, or an attempt to circumvent, any of a company's internal controls implemented to prevent fraud, or which the employee reasonably believes to be fraudulent.
Section 2. Section 3 of chapter 522 if the laws of 2021 amending the labor law relating to retaliatory actions by employers, is amended to read as follows: section of one of this act shall be deemed to have been in full force and effect on and after January 1, 2018.
Section 3. Sets for the effective date.
Justification
Corporate internal controls are critical, particularly those designed to prevent fraud. Mosty recently, New York Community Bank and other New York based financial institutions are at risk of failure and material losses resulting from a lack of enforcement of internal controls. Whist- leblowers who report violations of these internal controls (particularly those designed to prevent fraud) are not protected in the state of New York or under Federal Sarbanes Oxley laws but are protected by state whistleblower protection laws in other states such as California and New Jersey. Whistleblowers who are protected and have the courage to speak up are critical for preventing material losses and fraud and thus guard- ians of the public interest.
Legislative history
2024 S.8842
Fiscal implications
EFFECTIVE DATE: Immediately
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.