Bill Text: NJ A1972 | 2010-2011 | Regular Session | Introduced
Bill Title: Enhances rights and remedies of employees who disclose or refuse to participate in fraudulent employer practices.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2010-02-08 - Introduced, Referred to Assembly Labor Committee [A1972 Detail]
Download: New_Jersey-2010-A1972-Introduced.html
Sponsored by:
Assemblyman HERB CONAWAY, JR.
District 7 (Burlington and Camden)
SYNOPSIS
Enhances rights and remedies of employees who disclose or refuse to participate in fraudulent employer practices.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the rights and remedies of employees who disclose or refuse to participate in certain fraudulent practices of employers, and amending P.L.1986, c.105 and P.L.1995, c.142.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 3 of P.L.1986, c.105, (C.34:19-3) is amended to read as follows:
3. An employer shall not take any retaliatory action against an employee because the employee does any of the following:
a. Discloses, or threatens to disclose to a supervisor or to a public body an activity, policy or practice of the employer, or another employer, with whom there is a business relationship, that the employee reasonably believes:
(1) is in violation of a law, or a rule or regulation promulgated pursuant to law, including any violation involving deception of, or misrepresentation to, any shareholder, investor, client, patient, customer, employee, former employee, retiree or pensioner of the employer or any governmental entity, or, in the case of an employee who is a licensed or certified health care professional, reasonably believes constitutes improper quality of patient care; or
(2) is fraudulent or criminal, including any activity, policy or practice of deception or misrepresentation which the employee reasonably believes may defraud any shareholder, investor, client, patient, customer, employee, former employee, retiree or pensioner of the employer or any governmental entity;
b. Provides information to, or testifies before, any public body conducting an investigation, hearing or inquiry into any violation of law, or a rule or regulation promulgated pursuant to law by the employer or another employer, with whom there is a business relationship, including any violation involving deception of, or misrepresentation to, any shareholder, investor, client, patient, customer, employee, former employee, retiree or pensioner of the employer or any governmental entity, or, in the case of an employee who is a licensed or certified health care professional, provides information to, or testifies before, any public body conducting an investigation, hearing or inquiry into the quality of patient care; or
c. Objects to, or refuses to participate in any activity, policy or practice which the employee reasonably believes:
(1) is in violation of a law,
or a rule or regulation promulgated pursuant to law, including any violation
involving deception of, or misrepresentation to, any shareholder, investor,
client, patient, customer, employee, former employee, retiree or pensioner of
the employer or any governmental entity, or, if the employee is a
licensed or certified health care professional, constitutes improper quality of
patient care;
(2) is fraudulent or criminal, including any activity, policy or practice of deception or misrepresentation which the employee reasonably believes may defraud any shareholder, investor, client, patient, customer, employee, former employee, retiree or pensioner of the employer or any governmental entity; or
(3) is incompatible with a clear mandate of public policy concerning the public health, safety or welfare or protection of the environment.
(cf. P.L.2005, c.329, s.1)
2. Section 5 of P.L.1986, c.105, (C.34:19-5) is amended to read as follows:
5. Upon a violation of any of the provisions of this act, an aggrieved employee or former employee may, within one year, institute a civil action in a court of competent jurisdiction. Upon the application of any party, a jury trial shall be directed to try the validity of any claim under this act specified in the suit. All remedies available in common law tort actions shall be available to prevailing plaintiffs. These remedies are in addition to any legal or equitable relief provided by this act or any other statute. The court [may] shall also order, where appropriate and to the fullest extent possible:
a. An injunction to restrain any [continued] violation of this act which is continuing at the time that the court issues its order;
b. The reinstatement of the employee to the same position held before the retaliatory action, or to an equivalent position;
c. The reinstatement of full fringe benefits and seniority rights;
d. The compensation for all lost wages, benefits and other remuneration; and
e. The payment by the employer of reasonable costs, and attorney's fees[;].
[f. Punitive damages; or
g. An] In addition, the court or jury may order: the assessment of a civil fine of not more than [$1,000.00] $10,000 for the first violation of the act and not more than [$5,000.00] $20,000 for each subsequent violation, which shall be paid to the State Treasurer for deposit in the General Fund; punitive damages; or both a civil fine and punitive damages. In determining the amount of punitive damages, the court or jury shall consider not only the amount of compensatory damages awarded to the employee, but also the amount of all damages caused to shareholders, investors, clients, patients, customers, employees, former employees, retirees or pensioners of the employer, or to the public or any governmental entity, by the activities, policies or practices of the employer which the employee disclosed, threatened to disclose, provided testimony regarding, objected to, or refused to participate in.
(cf: P.L.2005, c.329, s.2)
3. Section 6 of P.L.1995, c.142 (C.2A:15-5.14) is amended to read as follows:
6. a. Before entering judgment for an award of punitive damages, the trial judge shall ascertain that the award is reasonable in its amount and justified in the circumstances of the case, in light of the purpose to punish the defendant and to deter that defendant from repeating such conduct. If necessary to satisfy the requirements of this section, the judge may reduce the amount of or eliminate the award of punitive damages.
b. No defendant shall be liable for punitive damages in any action in an amount in excess of five times the liability of that defendant for compensatory damages or $350,000, whichever is greater.
c. The provisions of subsection b. of this section shall not apply to causes of action brought pursuant to P.L.1993, c.137 (C.2A:53A-21 et seq.), P.L.1945, c.169 (C.10:5-1 et seq.), P.L.1989, c.303 (C.26:5C-5 et seq.), [or] P.L.1992, c.109 (C.2A:61B-1) or P.L.1986, c.105, (C.34:19-1 et seq.), or in cases in which a defendant has been convicted pursuant to R.S.39:4-50 or section 2 of P.L.1981, c.512 (C.39:4-50.4a).
(cf: P.L.2005, c.329, s.3)
4. This act shall take effect immediately.
STATEMENT
This bill enhances the scope and strengthens the enforcement provisions of the "Conscientious Employee Protection Act" (CEPA) P.L.1986, c.105 (C.34:19-1 et seq.), with special emphasis on protecting any employee who discloses to a supervisor or a public body, or refuses to participate in, any deception or misrepresentation which may defraud shareholders, investors, clients, patients, customers, employees, former employees, retirees or pensioners of the employer, or governmental entities.
The bill expressly includes, among the fraudulent or criminal employer actions which an employee may disclose and refuse to participate in, any activity, policy, or practice of deception or misrepresentation which the employee reasonably believes may defraud any of the employer's shareholders, investors, clients, patients, customers, employees, former employees, retirees or pensioners, or any governmental entity.
The bill requires, rather than permits, that the remedies ordered by a court in a civil action for a violation of the act include, to the fullest extent possible, all of the following:
1. An injunction against any continuing violation of the act;
2. Reinstatement of the employee to the same, or comparable, employment with full fringe benefits and seniority rights;
3. Compensation for all lost remuneration; and
4. Payment of reasonable costs and lawyers fees.
As is currently the case under CEPA, the court may also order civil fines and punitive damages. The bill amends that law to raise the maximum civil fine for a first violation from $1,000 to $10,000 and for subsequent violations from $5,000 to $20,000, and to direct the court, when determining the amount of any punitive damages to be ordered, to consider not only the amount of compensatory damages awarded to the employee, but also the amount of damage caused by employer actions to shareholders, investors, clients, patients, customers, employees, former employees, retirees or pensioners of the employer, or to governmental entities or the public. Finally, the bill exempts punitive damages awarded under CEPA from the maximum limit set by the "Punitive Damages Act," P.L.1995, c.142 (C.2A:15-5.9 et seq.), which is the greater of $350,000 or five times the awarded compensatory damages.
This bill is intended to enhance the scope and strengthens the enforcement provisions of the CEPA, and is not intended to diminish, reduce or curtail the rights or remedies available to employees under that act in any way.
