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Whistleblowers

In New Jersey, the law recognizes that employees, in the course of their normal employment, may be privy to actions of the employers that are illegal or otherwise not in the interest of the public. Because of this, the law shields every employee from any and all retaliation an employer may use against an employee who may stand up and speak out.  An employee like this may otherwise be known as a “whistleblower.”  We at Matsikoudis & Fanciullo have successfully fought for our clients in whistleblower actions, protecting them from punishment and recovering hundreds of thousands of dollars in remedies.

The New Jersey Conscientious Employee Protection Act (“CEPA”: N.J.S.A.: 34:19-1 et seq.) prohibits an employer from taking “any retaliatory action against an employee” who:

  • Reports or threatens to report to a supervisor or public body any activity, policy, practice, or relationship that the employee “reasonably believes” was in violation of a law, rule, or regulation;
  • Reports or threatens to report to a supervisor or public body any activity that the employee reasonably believes to be fraudulent or criminal;
  • Participates in an investigation of their employer or testifies in a hearing against their employer for any potentially illegal conduct; or
  • Objects to or refuses to participate in any activity, policy, or practice that the employee reasonably believes to be illegal, fraudulent, criminal, or in clear violation of public policy.

New Jersey also recognizes a common-law exception to “at-will” employment for terminations that violate public policy.  Similar laws are in place in New York to protect whistleblowers, including additional protections for whistleblower actions taken against conduct that poses a “danger to public health or safety.”

 

Such laws recognize that diligent employees are the first line of defense against corporate wrongdoing and must be protected from employer scaremongering.  “Retaliatory action” is thus defined broadly under CEPA, including termination, suspension, demotion, or any other tangible adverse job actions.

 

Certain whistleblowing activities may not be covered by CEPA: For instance, if an employee reports that their employer is not following its own “best practices” guidelines or policies, but not violating any laws, rules, or regulations, an employee is likely not protected by CEPA.

 

CEPA also provides certain protections to employers, so employees have to be careful in bringing a case.  Unless the employee is sure that at least one supervisor knows about wrongdoing, the whistleblower must submit written notice to the employer to allow the employer to correct things before reporting it to a public body, otherwise, CEPA won’t protect the employee from retaliation.  In addition, if an employee brings an action that is frivolous – in other words, if the employee didn’t “reasonably believe” there was any wrongdoing – a court may order the employee to pay the employer’s legal fees.

 

People who make sure that their employers are operating within the law should be commended, not fired, suspended, intimidated or demoted.  If you believe you’ve suffered retaliatory action for protected whistleblower activity, please call or contact Matsikoudis & Fanciullo.  We can consult with you for free and help determine if you should bring a case.

 

Frequently Asked Questions

 

Q: What is needed for a successful case?

 

A: In order to bring a successful whistleblowing claim, you (as the plaintiff) would need to demonstrate that:

  • You reasonably believed that your employer’s conduct was violating a law, rule, regulation, or clear mandate of public policy;
  • You “blew the whistle” and/or refused to participate in the conduct that you reasonably believed was wrongful;
  • Your employer took a negative action against you; and
  • There is a causal relationship between the whistleblowing and the negative employment action.

 

Q: What is an action “not in the public interest”?

 

A: Basically, anything that goes against a statue or a regulation or that constitutes fraud is against the public interest. Additionally, in certain situations some activities that are harmful to the public health or constitute improper care of medical patients may also satisfy this prong.

 

Q: What counts as “blowing the whistle”?

 

A: There are many different actions that count as blowing the whistle on business practice that are unlawful or against public policy, some examples are:

  • Telling, or threatening to tell, a supervisor or public body;
  • Supplying information to a shareholder, investor, client, patient, customer, employee, former employee, retiree, or pensioner of the employer;
  • Providing information to a public body conducting some sort of hearing or investigation.
  • Objecting to, or refusing to participate in, an activity, policy, or practice that you reasonably believe is in violation of the law or against public policy.