The Supreme Court of New Jersey recently held that a plaintiff who reports conduct as part of his or her job is entitled to the whistle-blowing protections afforded under the Conscientious Employee Protection Act (CEPA).
As further detailed in a prior post, plaintiff Joel S. Lippman, M.D. alleged that his former employer, defendant Ethicon, Inc., a subsidiary of Johnson & Johnson, Inc., violated CEPA. He specifically alleged that he was terminated from his position as the vice president of medical affairs because he consistently advocated positions that favored the recall of products that, in his professional opinion, were dangerous to the public.
In defense of the whistleblower suit, Ethicon maintained that Lippman was terminated because he had an inappropriate relationship with someone who worked directly for him. It further argued that Lippman’s conduct did not constitute whistleblowing under CEPA because it was part of his job-related duties.
While the trial court dismissed the suit, the Appellate Division reversed. In ruling that so-called “watchdog” employees like Lippman should not fall outside of CEPA’s protections, the appeals court noted that such employees are the “most vulnerable to retaliation because they are uniquely positioned to know where the problem areas are and to speak out when corporate profits are put ahead of consumer safety.”
The Court’s Decision
The New Jersey Supreme Court affirmed, largely agreeing with the Appellate Division’s reasoning. As Justice Jaynee LaVecchia wrote for the unanimous court:
There is no support in [the Conscientious Employee Protection Act’s] language, construction or application in this court’s case law that supports that watchdog employees are stripped of whistleblower protection as a result of their position or because they are performing their regular job duties.
The New Jersey Supreme Court did find fault with one aspect of the Appellate Division’s decision, holding that the appeals court erroneously applied a heightened burden of proof for watchdog employees pursuing CEPA claims. According to the court, the requirement is “nowhere found in the statutory language.”
Bringing on outside investors can provide the capital and strategic support a business needs to grow. However, raising capital also introduces important legal, financial, and operational considerations. Before bringing on investors, businesses should address key legal issues to reduce risk, streamline investor due diligence, and position the company for long-term success. Early preparation signals that […]
How the Updated Law Shapes Retirement and Estate Planning The SECURE 2.0 Act of 2022 materially reshapes the required minimum distribution (RMD) landscape, extending tax deferral opportunities while accelerating distribution requirements for many beneficiaries. For high-net-worth individuals and families, these changes are not merely technical. They require a reassessment of retirement income strategies, beneficiary planning, […]
Buying Commercial Property in New Jersey: Legal Guide for Small Businesses
Small businesses considering buying commercial property in New Jersey must evaluate a range of legal, financial, and operational factors. While ownership can offer long-term value and control, it also introduces significant risks if not properly structured. This guide outlines key considerations to help New Jersey business owners make informed decisions, minimize legal exposure, and successfully […]
The SEC’s Latest Guidance on Applying Federal Securities Laws to Tokenized Securities
On January 28, 2026, staff of the U.S. Securities and Exchange Commission’s Divisions of Corporation Finance, Investment Management, and Trading and Markets issued a joint statement clarifying how existing federal securities laws apply to tokenized securities. The SEC’s “Statement on Tokenized Securities” does not establish new law, but it does provide greater clarity on the […]
Common Legal Mistakes NYC and New Jersey Business Owners Make
Operating a business in the New Jersey and New York City metropolitan region offers incredible opportunities, but it also requires navigating a dense and highly regulated legal environment. From entity formation to regulatory compliance, seemingly minor legal oversights can expose business owners to significant risk. In our work with businesses throughout the region, our attorneys […]
High-profile founder litigation is more than just a media spectacle. For startup founders, these cases underscore the legal and structural risks that can arise when rapid growth outpaces formal oversight. While launching a new company can be both an exciting and deeply rewarding endeavor, founders must be mindful that it also comes with significant risks. […]
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!
