New York 2025-2026 Regular Session

New York Senate Bill S07494

Introduced
4/17/25  
Refer
4/17/25  
Engrossed
6/12/25  

Caption

Provides for securities fraud whistleblower incentives and protections; defines terms; grants whistleblower awards for one or more whistleblowers who voluntarily provide original information to the attorney general that was the basis for a successful covered enforcement action; protects whistleblowers from retaliation; authorizes the attorney general to adopt any necessary rules and regulations; makes related provisions.

Impact

The enactment of S07494 has significant implications for New York's laws governing securities and business practices. It amends existing statutes in the General Business Law, the Financial Services Law, and the State Finance Law, establishing a clearer framework for whistleblower incentives. The new protections mean that whistleblowers are less likely to face negative repercussions at work, making it easier for individuals to come forward with critical information regarding fraud or other illegal activities within the financial landscape.

Summary

Bill S07494, known as the Government Response to Insider Fraud and Trading Act (GRIFT Act), aims to enhance the incentives and protections for whistleblowers reporting securities fraud. The legislation stipulates that individuals who voluntarily provide original information to the Attorney General that results in successful enforcement actions can receive monetary awards between 10% and 30% of the sanctions levied. This encourages reporting by offering significant rewards while also safeguarding whistleblowers from retaliation by their employers, thereby fostering a culture of transparency and accountability within the financial sector.

Contention

Critics of the bill, however, raise concerns over potential misuse of these protections, suggesting that some individuals might leverage them to pursue frivolous claims or retaliate against former employers. There are also apprehensions regarding the effectiveness of oversight mechanisms in ensuring that the whistleblower reports are valid and substantively contribute to enforcement actions. As with all such legislative changes, there remains a balancing act between encouraging whistleblowing for the public good and mitigating the risks of malicious reporting.

Companion Bills

NY A08016

Same As Provides for securities fraud whistleblower incentives and protections; defines terms; grants whistleblower awards for one or more whistleblowers who voluntarily provide original information to the attorney general that was the basis for a successful covered enforcement action; protects whistleblowers from retaliation; authorizes the attorney general to adopt any necessary rules and regulations; makes related provisions.

Previously Filed As

NY A01337

Directs the NYS energy research and development authority and public and private operators of each nuclear-powered electric generating facility to establish a nuclear whistleblower access and assistance program; makes related provisions as to elements of the program and provides that employees of such plants shall not be subject to retaliation; requires the authority to investigate reported safety concerns; provides that whistleblowers shall have standing to litigate and may do so without exhaustion of administration remedies; authorizes the attorney general to bring actions to enforce the labor law provisions.

NY A04495

Provides that any person who provides information to the attorney general, a district attorney or the insurance frauds bureau concerning a fraudulent insurance transaction or with information about a fraudulent insurance transaction that is about to take place may be entitled to an award of forty percent of the action or claim relating to such fraudulent action.

NY S08842

Prohibits retaliatory actions by employers against employees for disclosure of activity which violates a company internal control implemented to prevent fraud or which the employee believes to be fraudulent; makes amendment to whistleblower statute in 2021 retroactive to 2018.

NY S00541

Enacts the "Empowering People in Rights Enforcement (EMPIRE) Worker Protection Act"; relates to the delegation of state enforcement authority to private actors; authorizes an affected employee, whistleblower, representative organization or an organizational deputy to initiate a public enforcement action on behalf of the commissioner for certain provisions of the labor law, or any regulation promulgated thereunder.

NY A01893

Enacts the "Empowering People in Rights Enforcement (EMPIRE) Worker Protection Act"; relates to the delegation of state enforcement authority to private actors; authorizes an aggrieved employee, whistleblower, representative organization or an organizational deputy to initiate a public enforcement action on behalf of the commissioner for certain provisions of the labor law, or any regulation promulgated thereunder.

NY A09012

Enacts the "Empowering People in Rights Enforcement (EMPIRE) Worker Protection Act"; relates to the delegation of state enforcement authority to private actors; authorizes an affected employee, whistleblower, representative organization or an organizational deputy to initiate a public enforcement action on behalf of the commissioner for certain provisions of the labor law, or any regulation promulgated thereunder.

NY S06511

Enhances protections for homeowners who have paid contractors, subcontractors, and material suppliers for home improvements; enhances penalties, civil and criminal for violations of the consumer protection provisions of the Home Improvement Contracts article of the general business law; authorizes the attorney general to prosecute crimes under that article.

NY S04500

Prohibits persons or business entities from filing unnecessary personal identifying information with an agency; provides for enforcement by the attorney general.

NY A07021

Relates to extreme risk protection orders; defines "exception"; authorizes a police officer or district attorney to file an application for an extreme risk protection order if found that a person meets the requirements of an exception pursuant to section 6340 of the civil practice law and rules; makes related provisions.

NY S06826

Relates to extreme risk protection orders; defines "exception"; authorizes a police officer or district attorney to file an application for an extreme risk protection order if found that a person meets the requirements of an exception pursuant to section 6340 of the civil practice law and rules; makes related provisions.

Similar Bills

NY A08016

Provides for securities fraud whistleblower incentives and protections; defines terms; grants whistleblower awards for one or more whistleblowers who voluntarily provide original information to the attorney general that was the basis for a successful covered enforcement action; protects whistleblowers from retaliation; authorizes the attorney general to adopt any necessary rules and regulations; makes related provisions.

PA HB828

Providing for unfair trade practices and for protection of whistleblowers; conferring powers and imposing duties on the Attorney General; establishing the Price-Fixing Consumer Protection Fund; imposing penalties; and making an appropriation.

US HB10118

FTC Whistleblower Act of 2024

US HB2490

CFPB Whistleblower Incentives and Protection Act

AZ HB2266

Workers' rights; public health emergency

AZ HB2775

Workers' rights; public health emergency

AZ HB2302

Workers' rights; public health emergency

AZ HB2533

Workers' rights; public health emergency