Answers and comments provided on Google Answers are general
information, and are not intended to substitute for informed
professional medical, psychiatric, psychological, tax, legal,
investment, accounting, or other professional advice. Furthermore, I'm
not an attorney so the value of the following comment is in its
ability to provide warmth should you decide to print it out and set
fire to it.
You (or your superiors) need to consult with an attorney. Charges of
insubordination are usually met with counter-charges of infringement
of rights from the employee.
New York is a one-party consent state for recording; that is, in New
York a person can secretly or openly engage in recording a
conversation so long as they are physically a party to the
conversation being recorded.
My information is a few years old but a recent court case in NY City
seems to have affirmed this. The case may be restricted in scope, so
don't try this without legal consultation.
When I found I had a colleague who insisted on recording conversations
I just refused to speak to that person. If I was asked a question I
replied "I will not speak to you because you are known to record
conversations. While that is your right, it is my right to not speak
to you." After a few times of saying this, the rest of the employees
began saying the same thing. My colleague soon went to work for the
government where I expect you (at least those of you in the US) will
be paying for the retirement of a very small cog in a very big machine
soon. Fortunately this person smokes two packs a day and lives for
chourice sausage and fried pork chops, so the tax burden of retirement
probably won't last over long.