Equity Partner Lacks Standing To Bring Whistleblower Claim Under CEPA, New Jersey District Court Holds

The protections of the New Jersey Conscientious Employee Protection Act (CEPA) do not extend to partners with significant control over their company. In Largie v. TCBA Watson Rice, LLP, 2013 WL 4487456 (D.N.J. Aug. 20, 2013) (unpub.), a New Jersey district court dismissed an equity partner’s CEPA claim (alleging he was terminated for refusing to engage in fraudulent accounting activities) because his position—that of an equity partner who influenced the company’s decision-making—rendered him more of an employer than an employee, and thus not protected under CEPA.

Note: This article was published in the November, 2013 issue of the New Jersey eAuthority.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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