LIEB BLOG

Legal Analysts

Showing posts with label Employee Rights. Show all posts
Showing posts with label Employee Rights. Show all posts

Thursday, June 08, 2023

New York's Expanding Whistleblower Law: Empowering Employees or Encouraging Tattle-tailing on Taxes

The state's taxpayer whistleblower law was recently expanded by Part DD of S4009C, the state budget, and employers should be nervous because now employees can bring lawsuits on suspicion that their employer evaded their tax obligations. 


The whistleblower law, which is formally called The New York False Claims Act (FCA), allows whistleblowers to bring suits against individuals and entities that knowingly submit deceptive claims to the government, including tax fraud. Initially, claimants were limited to individuals with specific knowledge of the taxpayer's preparation process. However, as amended under S4009C, New York State Finance Law Art. 13 §189-h now enables claims against individuals or entities who deliberately evade tax obligations where claims can be advanced solely on suspicions. 


Given that the FCA allows whistleblowers to recover monetary damages of 30 percent of the government's recovery and that the government can recover three times the loss sustained by the state, it bodes to reason that disgruntled employees are quite incentivized to bring claims in selling out their employers. 


The amendment permits claims on tax concealments from May 3, 2020, but does not allow raising retroactive claims in pending cases. Individuals and business entities should immediately reassess their filing obligations and be clear on which employees have access to their records. 


As amended, the FCA is very likely to shake up the dynamic between bosses and employees. With enticing financial incentives on the line for successful whistleblowing claims, things are about to get interesting. 






Tuesday, May 23, 2023

Safeguarding Digital Privacy in Employment: An Examination of Assembly Bill A836

The age of digitization has elevated the significance of privacy rights, particularly regarding employment relationships. With the rise of personal electronic accounts, there has been growing concern about whether employers should be granted access to these accounts. Addressing this concern, Assembly Bill A836 in New York has recently been passed and heads to the Governor's Desk to be enacted, providing significant protection of employees' and applicants' digital privacy.

Defining the Prohibition: Assembly Bill A836

The 2023-2024 legislative session of New York saw the introduction of Assembly Bill A836, sponsored by Assemblyman Dinowitz. The bill provides comprehensive protection to the digital privacy of employees and job applicants, explicitly forbidding employers from requesting or requiring an employee or an applicant to disclose access details to their personal accounts on electronic communication devices.

What Constitutes a Personal Account?

Under the provisions of the bill, a personal account is an electronic medium profile where users create, share, and view user-generated content. This could range from uploading or downloading videos or photos, blogging, vlogging, instant messaging, or maintaining any internet website profile that is used by an individual exclusively for personal purposes.

Impact on Employers and Employees

Under the proposed bill, employers cannot compel or require employees or job applicants to disclose authentication details, access personal accounts in the employer's presence, or reproduce content or information from these personal accounts. Any infringement of this law may have legal repercussions.

Notable Exceptions

Despite the broad coverage of the bill, there are certain exceptions where an employer may request access information. These exceptions typically revolve around non-personal accounts that provide access to the employer's internal computer or information systems.

The bill also allows employers to request access information to an account used for business purposes or an account tied to an electronic device partially or fully paid by the employer. However, the employer must provide prior notice to the employee and obtain explicit agreement.

Looking Ahead

Upon being signed into law, Assembly Bill A836 will come into effect 180 days later, marking a significant milestone in the protection of digital privacy in the workplace. It emphasizes the necessity of distinguishing personal and professional spheres in the digital realm and serves as a potential precedent for other jurisdictions to follow.

Employers will have to adapt to this legislation and update their practices to maintain compliance. This underscores the continuous challenge of harmonizing privacy rights with business requirements in the rapidly evolving digital era.