Blog Layout

New Legal Developments That Protect Whistleblower Employees

Aug 10, 2015

There are a number of whistleblower laws that are intended to protect employees who report, object to or refuse to participate in conduct that may be either illegal, fraudulent or endangers the health and safety of individuals and the public. Within the past month, there have been two significant legal developments that have interpreted New Jersey's Conscientious Employee Proctection Act ("CEPA") and the Dodd Frank law passed by Congress in 2010.



The first development involves the CEPA statute that protects New Jersey employees from employer retaliation against those employees who are whistleblowers. During the past several years, management lawyers have tried to gut the statute by arguing in the courts that those employees who blow the whistle as part of their job duties should not be protected by the CEPA. The danger of this argument is that an employer could include in its employee manual, employment application or other writings a job requirement that all employees must report illegal, fraudulent or unsafe activities thus leaving the employee without any legal protection under the CEPA. The New Jersey Supreme court just recently addressed this very issue in Lippman v. Ethicon, Inc.  This case involved an employee whose job duties was to evaluate the safety of the products manufactured and sold by his employer. The case was dismissed by the trial court on the theory that he was just doing his job and was not a whistleblower under CEPA. That decision was overturned by the New Jersey Appellate Division who ruled that the CEPA's provisions do not support such a legal conclusion. However, that Court added an extra requirement that concerned watch dog employees only; namely that to prove illegal retaliation, the watch dog employee had to show that he/she complained internally within the company and that he/she did all they could to make sure the employer complied with the law. The case then went to the New Jersey Supreme Court which ruled unanimously in favor of the employee. That ruling stated that CEPA's express wording does not give the employer a get out of jail free card if an employee reports, objects to or refuses to participate in illegal or fraudulent activity as part of their job duties. The New Jersey Supreme Court also ruled that the CEPA's wording does not require a watchdog employee to complain internally and that he/she did everything they could to get the employer to comply with the law in order to be protected by the CEPA. In other words, if an employee reports, objects to and/or refuses to participate in conduct that he/she reasonably believes violates the law, endangers the public or is fraudulent, then an employer can be found liable and pay damages if it retaliates against such an employee.


The second development involves an interpretive guidance that the Securities and Exchange Commission ("SEC") just issued that also protects employees who blow the whistle against employers who are publicly traded on stock exchanges. The regulation interprets the relatively recent Dodd Frank law. This guidance basically says that Dodd Frank's whistleblower protections not only extend to those individuals who submit information to the SEC in order to obtain a whistleblower reward but also to those employees who complain internally to their employer. This guidance resolves an ambiguity in the law and federal courts will most likely defer to the SEC's expertise when this issue is litigaged in Dodd Frank cases.

All in all, these two developments will greatly enhance whistlebower protection to New Jersey employees.

14 Feb, 2022
The phrase “everyone makes mistakes” is often used to discourage people from dwelling on their errors. However, those whose mistakes resulted in criminal records are left with an unshakeable stigma that interferes with their ability to make a living and support themselves and their families. In an effort to provide job applicants with criminal records a fair chance in obtaining employment, “Ban the Box” legislation has been passed in over 100 states, cities and counties and President Obama directed that federal agencies follow suit. This year, both New Jersey and New York City have passed such legislation. However, despite both being classified as “Ban the Box” statutes, New Jersey’s Opportunity to Compete Act and New York City’s Fair Chance Act are very different in the protections they offer. First, New Jersey’s statute applies only to employers with 15 or more employees over 20 calendar weeks, while New York City’s applies to companies with just four or more employees. With regard to the substantive protections provided by these laws, New York City’s statute provides much greater protection for applicants and employees with criminal records. When Employers Cannot Inquire about Criminal Backgrounds New Jersey: Employers are prohibited from inquiring about applicants’ criminal records during the initial employment application process (defined as through the first interview). However, if an applicant voluntarily discloses his/her criminal record during the initial employment application process, the employer can inquire about the specifics of the applicant’s criminal history. New York City: Employers cannot inquire about an applicant’s pending arrest or criminal conviction record until after a conditional offer of employment has been made. This includes a prohibition on conducting background checks as well as internet searches aimed at uncovering an applicant’s criminal history prior to the conditional offer of employment. Unlike New Jersey’s statute, if an applicant discloses his/her criminal record to a New York City employer prior to a conditional offer of employment, the employer must tell the applicant that the information will not be considered in determining whether to offer employment. In addition, New York Correction Law Article 23-A bans employment discrimination based on criminal records after the application process, providing further protection to New York City’s citizens. Both statutes prohibit employers from publishing advertisements that provide that applicants with criminal records will not be considered and from utilizing employment applications that ask about criminal history. After Employers Inquire about Criminal Backgrounds New Jersey: After the first interview of an applicant is conducted, New Jersey employers can inquire about and refuse to hire an applicant based on their criminal background unless the record has been expunged or pardoned. New York City: After a conditional offer of employment has been made, New York City employers can inquire about criminal convictions and require a background check. However, the employer still cannot inquire about arrests that did not result in a conviction or sealed convictions or use this type of criminal history in deciding not to hire an applicant. Once employers obtain information about other convictions, they can only withdraw conditional offers of employment if they prove (1) there is a direct relationship between the criminal record and the prospective job or (2) employing the applicant would involve an unreasonable risk to property, safety, or welfare using specific factors set forth in New York Correction Law Article 23-A. In notifying applicants of the withdrawal, New York City employers must comply with the “Fair Chance Process” and (1) disclose a written copy of their inquiry into the applicants criminal background, (2) share with applicants’ a written analysis of whether there is a direct relationship or unreasonable risk, and (3) allow three business days for the applicant to respond.  Of course, as with all laws, there are exceptions to New Jersey and New York City’s “Ban the Box” legislation including that applicants for law enforcement positions or for positions where a background check is required or employees with criminal records are prohibited by law are not protected. If you think your criminal background has been illegally considered in an employment application process, contact an attorney at Green Savits for additional information regarding these statutes or potential representation of your interests.
21 Dec, 2021
You deserve to thrive in your career. You work hard, you care about contributing to teamwork and your workplace culture, and you probably never expected to deal with a hostile work environment in return. Unfortunately, many Americans deal with just this problem. Under certain circumstances, workplace harassment may constitute a hostile work environment , and our attorneys may be able to help you pursue justice. If the following behavior is pervasive/severe, interfering with your work, and your employer knows about and has done nothing to stop it, then you may be in a hostile work environment: Unwanted touching Threats Assault Interfering with someone’s work Intimidation Slurs Jokes Mockery Ridicule Sexually suggestive comments, language, pictures, or videos These acts amount to discrimination against a legally protected group of people. The behavior is based on protected parts of a person’s identity, such as skin color, religion, sex, sexual orientation, disability, national origin, marital status, gender identity, and more. A hostile work environment is more pervasive and persistent than one isolated incident in which someone said something offensive to you. The all-encompassing and relentless nature of a hostile work environment can eventually completely wear you down emotionally, mentally, and financially. The workplace may feel like an abusive, intimidating place to be because the harassment is ever-present. Employers have a responsibility to respond to and address complaints related to harassment and a hostile work environment. This obligation is legally binding. An employer who fails to investigate and take action to stop workplace harassment may be held accountable by our experienced employment attorneys and may ultimately have to pay damages to the victim of the hostile work environment. What To Do About It If you believe you are the victim of a hostile work environment, please call the experienced Florham Park employment attorneys at Green Savits at 973-695-7777. We will listen to all you have to say about what you are encountering at work, and then we can provide our recommendations and suggestions for what to do next. Our employment attorneys have lengthy experience in all of the case law, state and municipal laws, as well as federal laws that may affect your situation.
30 Nov, 2021
The New Jersey Family Leave Act is important legislation for residents of our state. Here are 5 things to know about the law:
21 Oct, 2021
As a person with a disability, you generally have a right to obtain employment without being harassed or discriminated against. Not only does Federal law provide certain protections, but so too does the New Jersey Law Against Discrimination.
08 Sep, 2021
In New Jersey, workplace sexual harassment is a type of illegal harassment. Illegal discrimination and retaliation must be for a prohibited reason (gender, race, sexual orientation, age, etc). Sexual harassment is harassment based on your gender.
31 Aug, 2021
In New Jersey, workplace sexual harassment is a type of illegal harassment. Illegal discrimination and retaliation must be for a prohibited reason (gender, race, sexual orientation, age, etc). Sexual harassment is harassment based on your gender. Not given the same opportunities as your peers at the job Passed over for promotions because of your age Harrassed for being an older employee at the organization Demoted because of your age Transferred to a less desirable position or department because of your age Asked to retire early or leave early because of your age Wrongfully discharged on the basis of age This is not an exhaustive list. Virtually any action an employer takes against an employee on the basis of age could ultimately be discriminatory by law. It’s up to you and your lawyer to show that your age is the reason you were discriminated against by the employer. These cases can be complex, but we have many years of experience representing people who have been in your shoes. Not only is there the federal Age Discrimination in Employment Act addressig this type of discrimination, but there is also New Jersey’s Law Against Discrimination. We have lots of experience with these statutes and regulations, and we can determine how they may play a role in your case. There may be several ways to obtain the best possible resolution to an age discrimination case. These cases don’t always go to court and full litigation, but they may. In other instances, they may be settled out of court in negotiations with the employer. We understand our clients want to know how much time, effort, and heartache will go into resolving the case. We work efficiently but we do not leave any stone unturned in our pursuit of the best possible results. Get The Answers You Need And Deserve If you think you may have experienced age discrimination at your job in New Jersey, please call the experienced employment attorneys at Green Savits LLC, at 973-695-7777 . We are passionate employment rights advocates in Florham Park.
14 Jul, 2021
Most of us have an intuitive sense of what constitutes discrimination at a restaurant, grocery store, or retail store. But recognizing disability discrimination in the world of work may be a little less clear.
01 Jun, 2021
Workplace sexual harassment is a serious offense that should not be taken lightly. Whether a co-worker makes unwanted physical advances towards you or a supervisor threatens to withhold pay or promotion without sexual contact, you should report the harassment as soon as possible.
20 Apr, 2021
If you are being discriminated against by your current or former employer for a documented disability, you may be able to bring a case against them. However, in order to win your disability discrimination case, there are a few things that you must be able to prove.
23 Feb, 2021
A constructive discharge is when an employee quits their job due to conditions that would make any reasonable employee leave. The law treats a constructive discharge the same way as being fired, which means you may qualify for unemployment benefits, severance pay, continued health insurance coverage, and more.
More Posts
Share by: