S T A T E   O F   N E W   Y O R K
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                                  5194
                       2009-2010 Regular Sessions
                            I N  S E N A T E
                             April 27, 2009
                               ___________
Introduced  by  Sen.  SAVINO -- read twice and ordered printed, and when
  printed to be committed to the Committee on Labor
AN ACT to amend the labor law and the civil service law, in relation  to
  protection of employees against retaliatory action by employers
  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
  Section 1. Section 740 of the labor law, as added by  chapter  660  of
the  laws of 1984, paragraph (g) of subdivision 1 as added and paragraph
(a) of subdivision 2 as amended by chapter 442 of the laws of  2006  and
paragraph  (d)  of  subdivision  4 as added by chapter 24 of the laws of
2002, is amended to read as follows:
  S 740. Retaliatory personnel  action  by  employers;  prohibition.  1.
Definitions.  For  purposes  of this section, unless the context specif-
ically indicates otherwise:
  (a) "Employee" means an individual who performs services for and under
the control and direction of an employer for wages  or  other  remunera-
tion.
  (b)  "Employer"  means  any  person,  firm,  partnership, institution,
corporation, or association that employs one or more employees.
  (c) "Law, rule or regulation" includes: (I) any duly enacted  FEDERAL,
STATE  OR  LOCAL  statute or ordinance [or]; (II) any rule or regulation
promulgated pursuant to [any federal, state or local]  SUCH  statute  or
ordinance;  OR  (III) ANY JUDICIAL OR ADMINISTRATIVE DECISION, RULING OR
ORDER.
  (d) "Public body" includes the following:
  (i) the United States Congress, any state legislature, or  any  [popu-
larly-elected] ELECTED local governmental body, or any member or employ-
ee thereof;
  (ii)  any federal, state, or local [judiciary] COURT, or any member or
employee thereof, or any grand or petit jury;
 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02606-01-9
              
             
                          
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  (iii) any federal, state,  or  local  regulatory,  administrative,  or
public agency or authority, or instrumentality thereof; [or]
  (iv) any federal, state, or local law enforcement agency, prosecutori-
al office, or police or peace officer;
  (V)  ANY  FEDERAL, STATE OR LOCAL DEPARTMENT OF AN EXECUTIVE BRANCH OF
GOVERNMENT; OR
  (VI) ANY DIVISION, BOARD, BUREAU, OFFICE, COMMITTEE, OR COMMISSION  OF
ANY  OF  THE PUBLIC BODIES DESCRIBED IN SUBPARAGRAPHS (I) THROUGH (V) OF
THIS PARAGRAPH.
  (e) "Retaliatory personnel action" means the discharge, suspension [or
demotion  of],  DEMOTION,  PENALIZATION  OR  DISCRIMINATION  AGAINST  an
employee,  or  other adverse employment action taken against an employee
in the terms and conditions of employment.
  (f) "Supervisor" means any individual within an  employer's  organiza-
tion who has the authority to direct and control the work performance of
[the  affected]  AN  employee; or who has [managerial] authority to take
corrective action regarding the [violation of the  law,  rule  or  regu-
lation] ILLEGAL BUSINESS ACTIVITY of which the employee complains.
  (g)  "Health care fraud" means health care fraud as defined by article
one hundred seventy-seven of the penal law.
  (H) "AGENT" MEANS ANY  INDIVIDUAL,  PARTNERSHIP,  ASSOCIATION,  CORPO-
RATION OR GROUP OF PERSONS ACTING ON BEHALF OF AN EMPLOYER.
  (I)  "ILLEGAL BUSINESS ACTIVITY" MEANS ANY PRACTICE, PROCEDURE, ACTION
OR FAILURE TO ACT BY AN EMPLOYER,  OR  AN  EMPLOYEE  OR  AGENT  OF  SUCH
EMPLOYER, TAKEN IN THE COURSE OF THE EMPLOYER'S BUSINESS, WHETHER OR NOT
WITHIN  THE  SCOPE OF EMPLOYMENT OR AGENCY, WHICH IS IN VIOLATION OF ANY
LAW, RULE OR REGULATION.
  2. Prohibitions. An employer shall not take any retaliatory  personnel
action against an employee because such employee does any of the follow-
ing:
  (a) discloses, or threatens to disclose to a supervisor or to a public
body INFORMATION ABOUT an ILLEGAL BUSINESS activity[, policy or practice
of  the  employer  that is in violation of law, rule or regulation which
violation creates and presents a substantial and specific danger to  the
public health or safety, or which constitutes health care fraud];
  (b)  provides  information  to,  or  testifies before, any public body
conducting an investigation, hearing or inquiry into any such [violation
of a  law,  rule  or  regulation  by  such  employer]  ILLEGAL  BUSINESS
ACTIVITY; or
  (c)  objects to, or refuses to participate in any [such] ILLEGAL BUSI-
NESS activity[, policy or practice in violation of a law, rule or  regu-
lation].
  3.  Application.  The  protection against retaliatory personnel action
provided by SUBDIVISION TWO OF THIS SECTION SHALL APPLY TO ANY  EMPLOYEE
WHO  IN GOOD FAITH REASONABLY BELIEVES THAT AN ILLEGAL BUSINESS ACTIVITY
HAS OCCURRED OR WILL OCCUR, BASED ON INFORMATION THAT  THE  EMPLOYEE  IN
GOOD  FAITH  REASONABLY BELIEVES TO BE TRUE; PROVIDED, HOWEVER, THAT THE
PROTECTION AGAINST RETALIATORY PERSONNEL ACTION  PROVIDED  BY  paragraph
(a)  of  subdivision  two  of this section pertaining to disclosure to a
public body shall not apply to an employee who makes such disclosure  to
a public body unless the employee has [brought] MADE A GOOD FAITH EFFORT
TO  NOTIFY  HIS  OR HER EMPLOYER BY BRINGING the ILLEGAL BUSINESS activ-
ity[, policy or practice in violation of law, rule or regulation] to the
attention of a supervisor  [of  the  employer]  and  has  afforded  such
employer  a  reasonable opportunity to correct such activity[, policy or
practice].  EMPLOYER NOTIFICATION SHALL NOT BE REQUIRED WHERE:  (A)  THE
S. 5194                             3
EMPLOYER  HAS NOT COMPLIED WITH THE PUBLICATION REQUIREMENTS OF SUBDIVI-
SION EIGHT OF THIS SECTION; (B) THERE IS AN IMMINENT AND SERIOUS  DANGER
TO  THE PUBLIC HEALTH OR SAFETY; OR (C) THE EMPLOYEE REASONABLY BELIEVES
THAT  REPORTING  TO  THE  SUPERVISOR  WOULD  RESULT  IN A DESTRUCTION OF
EVIDENCE OR OTHER CONCEALMENT OF THE ILLEGAL BUSINESS ACTIVITY.
  4. Violation; remedy. (a) An employee who has been the  subject  of  a
retaliatory  personnel action in violation of this section may institute
a civil action in a court of competent jurisdiction for  relief  as  set
forth  in  subdivision  five of this section within [one year] TWO YEARS
after the alleged retaliatory personnel action was taken.
  (b) Any action authorized by this section may be brought in the county
in which the alleged retaliatory personnel action occurred, in the coun-
ty in which the complainant resides, or  in  the  county  in  which  the
employer has its principal place of business.
  (c)  It  shall  be  a  defense  to any action brought pursuant to this
section that the personnel action was predicated upon grounds other than
the employee's exercise of any rights  protected  by  this  section.  It
shall  also be a defense that the individual was an independent contrac-
tor.
  (d) [Notwithstanding the provisions of paragraphs (a) and (c) of  this
subdivision, a health care employee who has been the subject of a retal-
iatory  action  by  a health care employer in violation of section seven
hundred forty-one of this article may institute  a  civil  action  in  a
court  of  competent jurisdiction for relief as set forth in subdivision
five of this section within two  years  after  the  alleged  retaliatory
personnel  action  was  taken.]  In  addition to the relief set forth in
[that] subdivision FIVE OF THIS SECTION, the court, in  its  discretion,
based upon a finding that the employer acted in bad faith in the retali-
atory  action,  may assess the employer a civil penalty of an amount not
to exceed ten thousand dollars, to be paid to the improving  quality  of
patient  care fund, established pursuant to section ninety-seven-aaaa of
the state finance law.
  5. Relief. In any action brought pursuant to subdivision four of  this
section, the court may order relief as follows:
  (a) [an injunction to restrain continued violation of this section;
  (b)]  the  reinstatement  of  the  employee  to the same position held
before the retaliatory personnel action, or to an equivalent position;
  [(c)] (B) the reinstatement of  full  fringe  benefits  and  seniority
rights;
  [(d)] (C) the compensation for lost wages, benefits and other remuner-
ation; [and
  (e)] (D) COMPENSATORY DAMAGES FOR ECONOMIC LOSS;
  (E)  the  payment  by the employer of reasonable costs, disbursements,
and attorney's fees;
  (F) AN INJUNCTION TO RESTRAIN THE EMPLOYER'S  CONTINUED  VIOLATION  OF
THIS SECTION WITH RESPECT TO THE EMPLOYEE; AND
  (G)  A  CIVIL PENALTY OF AN AMOUNT NOT TO EXCEED TEN THOUSAND DOLLARS,
IF THE COURT, IN ITS DISCRETION, FINDS THAT THE EMPLOYER  ACTED  IN  BAD
FAITH IN THE RETALIATORY ACTION.
  6.  Employer  relief.  A court, in its discretion, may also order that
reasonable attorneys' fees and court costs and disbursements be  awarded
to  an  employer  if  the  court determines that an action brought by an
employee under this section was without REASONABLE basis in  law  or  in
fact.
  7.  Existing rights. Nothing in this section shall be deemed to dimin-
ish the rights, privileges, or remedies of any employee under any  other
S. 5194                             4
law  or  regulation  or  under  any  collective  bargaining agreement or
employment contract; except that the institution of an action in accord-
ance with this section shall be deemed a waiver of the rights and  reme-
dies  available  under  any other contract, collective bargaining agree-
ment, law, rule or regulation or under the common law.
  8.  PUBLICATION.  EVERY  EMPLOYER  SHALL  INFORM  EMPLOYEES  OF  THEIR
PROTECTIONS,  RIGHTS  AND  OBLIGATIONS  UNDER THIS SECTION, BY POSTING A
NOTICE THEREOF.  SUCH NOTICES SHALL BE POSTED  CONSPICUOUSLY  IN  EASILY
ACCESSIBLE  AND  WELL-LIGHTED PLACES CUSTOMARILY FREQUENTED BY EMPLOYEES
AND APPLICANTS FOR EMPLOYMENT.
  S 2. Subdivision 2 of section 75-b of the civil service law, as  added
by chapter 660 of the laws of 1984 and paragraph (a) as amended by chap-
ter 899 of the laws of 1986, is amended to read as follows:
  2.  (a) A public employer shall not dismiss, SUSPEND, DEMOTE, PENALIZE
OR DISCRIMINATE AGAINST, or take other  disciplinary  or  other  adverse
personnel  action  against  a  public  employee regarding the employee's
employment because the employee:
  (I)  discloses  OR  THREATENS  TO  DISCLOSE  to  a  governmental  body
information[:(i)]  regarding  a  violation  of a law, rule or regulation
which violation creates and presents a substantial and  specific  danger
to  the  public health or safety[; or (ii) which the employee reasonably
believes to be true and reasonably believes]  OR  WHICH  constitutes  an
improper governmental action[. "Improper governmental action" shall mean
any action by a public employer or employee, or an agent of such employ-
er  or  employee, which is undertaken in the performance of such agent's
official duties, whether or not such action is within the scope  of  his
employment,  and  which  is  in violation of any federal, state or local
law, rule or regulation.];
  (II) PROVIDES INFORMATION TO, OR TESTIFIES  BEFORE,  ANY  PUBLIC  BODY
CONDUCTING  AN  INVESTIGATION,  HEARING OR INQUIRY INTO ANY VIOLATION OR
ACTION DESCRIBED IN SUBPARAGRAPH (I) OF THIS PARAGRAPH; OR
  (III) OBJECTS TO, OR REFUSES TO PARTICIPATE IN, ANY SUCH VIOLATION  OR
ACTION.
  (b)  THE  PROTECTION  AGAINST RETALIATORY PERSONNEL ACTION PROVIDED IN
PARAGRAPH (A) OF THIS SUBDIVISION SHALL APPLY TO  ANY  EMPLOYEE  WHO  IN
GOOD FAITH REASONABLY BELIEVES THAT A VIOLATION OR IMPROPER GOVERNMENTAL
ACTION HAS OCCURRED OR WILL OCCUR, BASED ON INFORMATION THAT THE EMPLOY-
EE IN GOOD FAITH REASONABLY BELIEVES TO BE TRUE.
  (C)  Prior  to  disclosing  information  pursuant  to  [paragraph (a)]
SUBPARAGRAPH (I) OF PARAGRAPH (A) of this subdivision, an employee shall
have made a good faith effort to provide the appointing authority or his
or her designee the information to be disclosed and  shall  provide  the
appointing  authority  or designee a reasonable time to take appropriate
action unless there is imminent and serious danger to public  health  or
safety.  For  the  purposes  of  this  subdivision, an employee who acts
pursuant to this paragraph shall be deemed to have disclosed information
to a governmental body under paragraph (a) of this subdivision.  NOTIFI-
CATION  TO  THE  APPOINTING  AUTHORITY OR DESIGNEE SHALL NOT BE REQUIRED
WHERE: (I) THE PUBLIC EMPLOYER HAS NOT  COMPLIED  WITH  THE  PUBLICATION
REQUIREMENTS OF SUBDIVISION FIVE OF THIS SECTION; (II) THERE IS AN IMMI-
NENT  AND  SERIOUS  DANGER  TO THE PUBLIC HEALTH OR SAFETY; OR (III) THE
EMPLOYEE REASONABLY BELIEVES THAT REPORTING TO THE APPOINTING  AUTHORITY
OR  DESIGNEE WOULD RESULT IN A DESTRUCTION OF EVIDENCE OR OTHER CONCEAL-
MENT OF THE ILLEGAL BUSINESS ACTIVITY.
  (D) "IMPROPER GOVERNMENTAL ACTION" SHALL MEAN ANY PRACTICE, PROCEDURE,
ACTION OR FAILURE TO ACT BY A PUBLIC EMPLOYER OR EMPLOYEE, OR  AN  AGENT
S. 5194                             5
OF  SUCH EMPLOYER OR EMPLOYEE, WHICH IS UNDERTAKEN IN THE PERFORMANCE OF
SUCH AGENT'S OFFICIAL DUTIES, WHETHER OR NOT SUCH ACTION IS  WITHIN  THE
SCOPE OF SUCH PERSON'S EMPLOYMENT, AND WHICH IS IN VIOLATION OF ANY LAW,
RULE  OR  REGULATION.  "LAW,  RULE OR REGULATION" INCLUDES: (I) ANY DULY
ENACTED FEDERAL, STATE OR LOCAL STATUTE OR ORDINANCE; (II) ANY  RULE  OR
REGULATION  PROMULGATED  PURSUANT  TO  ANY SUCH STATUTE OR ORDINANCE; OR
(III) ANY JUDICIAL OR ADMINISTRATIVE DECISION, RULING OR ORDER.
  S 3. Paragraph (c) of subdivision 3  of  section  75-b  of  the  civil
service  law, as added by chapter 660 of the laws of 1984, is amended to
read as follows:
  (c) [Where] IN ADDITION TO OR IN LIEU OF THE PROCEDURES SET  FORTH  IN
PARAGRAPHS  (A) AND (B) OF THIS SUBDIVISION, OR WHERE an employee is not
subject to any of the provisions of [paragraph (a) or (b) of this subdi-
vision] SUCH PARAGRAPHS, the employee may commence an action in a  court
of  competent  jurisdiction  under the same terms and conditions AND FOR
THE SAME RELIEF as set forth in article twenty-C of the labor law.
  S 4. Section 75-b of the civil service law is amended by adding a  new
subdivision 5 to read as follows:
  5.  EVERY PUBLIC EMPLOYER SHALL INFORM EMPLOYEES OF THEIR PROTECTIONS,
RIGHTS AND OBLIGATIONS UNDER THIS SECTION, BY POSTING A NOTICE  THEREOF.
SUCH  NOTICES  SHALL  BE  POSTED  CONSPICUOUSLY IN EASILY ACCESSIBLE AND
WELL-LIGHTED PLACES CUSTOMARILY FREQUENTED BY EMPLOYEES  AND  APPLICANTS
FOR EMPLOYMENT.
  S  5.  This  act shall take effect on the ninetieth day after it shall
have become a law.