NJ Supreme Court Holds Compliance Employees Have Full Whistleblower Protection
The New Jersey Supreme Court issued a ruling on July 15, 2015 in the case of Lippman v. Ethicon, Inc setting important precedent confirming that compliance employees are fully protected under state whistleblower laws. This ruling settles an ongoing controversy as to whether compliance officers, who have the job as company “watchdog,” can be whistleblowers.
“In my 30 years of representing employee whistleblowers, I have found that employees who serve in a compliance function are among the most retaliated against,” commented Stephen M. Kohn, Partner in the whistleblower protection firm of Kohn, Kohn & Colapinto. “Major corporations have turned ‘shooting the messenger’ into an art form for covering up misconducted and undermining the internal compliance process,” Kohn continued.
The NJ Supreme Court refused to create a loophole under New Jersey’s Conscientious Employee Protection Act stating that “there is no language in state law that strips watchdog employees of whistleblower protection” for fulfilling the duties of their job. The NJ high court instead agreed with the appellate court which found watchdog employees to be “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.”
Kohn explained the importance of this ruling stating, “It is essential that compliance employees be fully protected because internal whistleblowers are the number one source for detecting fraud and misconduct.”
Related links:
NJ Supreme Court Decision: Lippman v. Ethicon, Inc
