What is the Conscientious Employee Protection Act (CEPA)?

The Conscientious Employee Protection Act (CEPA) is a New Jersey statute designed to protect employees who refuse to participate in any activity, policy, or practice that he or she reasonably believes violates law, is fraudulent or criminal, or is incompatible with public policy.

How has the New Jersey Supreme Court described CEPA?

The New Jersey Supreme Court has described CEPA as "the most far-reaching whistleblower statute in the nation.”

What types of actions does CEPA prohibit?

CEPA prohibits employers from penalizing any employee who reports, makes a good faith report, verbally or in writing, of a violation or suspected violation of the act.

What must an employee prove to establish a CEPA claim?

To establish a CEPA claim, an employee does not need to prove that the reported violation occurred. Instead, employees generally must demonstrate that:

• They had a reasonable belief that the employer’s conduct was illegal, criminal, or against public policy;
• They objected to or refused to participate in the conduct;
• They reported the conduct.

What remedies are available to employees who prevail in a CEPA case?

Employees who succeed in a CEPA claim are entitled to “appropriate relief,” which may include reinstatement to their position, back pay, lost benefits, and reimbursement of legal costs. In some cases, CEPA claims have resulted in damages exceeding one million dollars.

Are punitive damages available in CEPA cases?

Yes, punitive damages may be awarded in CEPA cases such as those involving willful misconduct by the employer.

How can employers prevent CEPA violations in their workplace?

Employers can reduce the risk of CEPA violations by implementing clear anti-retaliation policies, providing training to supervisors and human resources personnel, and fostering a culture of transparency and compliance. Also, documentation of the good-faith report, as well as its investigation, and notation of no adverse employment action, is important.