Assemblyman Abinanti and Senator Savino Call for Passage of Legislation Prohibiting Employer Retaliation Against Employees in the Financial Services Industry

Assemblyman Tom Abinanti (D-Greenburgh/Mt. Pleasant) and Senator Diane J. Savino (D-Staten Island/Brooklyn) today called for the passage of legislation (A.815/S.4453) to prohibit employer retaliation against employees in the financial services industry who report violations to a supervisor or a public body. The legislators’ call for action comes on the heels of the fifth anniversary of President George W. Bush’s signing into law the Troubled Asset Relief Program (TARP) in response to the 2008 financial crisis.

“We cannot allow fraudulent financial schemes to go unchecked and have another financial crisis,” said Assemblyman Abinanti. “We need to encourage employees in financial institutions to report illegal and unethical behavior. We need to protect whistleblowers.”

“The biggest crime would be to fail to prevent another financial crisis,” stated Senator Savino. “The key to stopping Wall Street from destroying itself is to report illegal and unethical behavior.”

Current law only protects employees who report illegal behavior which creates a substantial and specific danger to public health or safety. The Abinanti-Savino proposal would protect employees in financial institutions who report illegal behavior and also protect employees in any industry who report bribery of a public official.

The need for the legislation was highlighted by the May 2012 New York Court of Appeals decision in Sullivan v. Harnisch where the Court ruled that current law did not protect a compliance officer who claimed that he was terminated for questioning the personal stock trades of the company’s president.

“The Court's decision forces financial services employees throughout New York to think carefully about doing what's right: should they confront wrongdoing or stay quiet? Unfortunately for their clients and the general public, the choice is clear,” said Attorney Daniel Felber, who represented Sullivan. “This legislation comes too late to help Joseph Sullivan, but will provide New York's financial services employees with the courage and support to follow Joseph Sullivan's lead and stand up for what's right.”

“Whistleblowers, like Joseph Sullivan, need protection from harassment, job loss and retaliation so we can maintain integrity in our financial system,” said Senator Savino.

“Without employees like Joseph Sullivan who are willing to object to wrongful behavior, most law violations will continue,” said Assemblyman Abinanti.  “By the time regulators and law enforcement officials uncover the destructive behavior, in most cases it will be too late – the damage will have been done.”