The New Jersey State Legislature has proposed a new bill (A-4243) that would require the State or its entities to publicly disclose the details of settlement agreements under its whistleblower protection law, the Conscientious Employee Protection Act.  CEPA, also known as the “Whistleblower Act,” prohibits an employer from taking retaliatory action against an employee who discloses an illegal act to a supervisor or public body, testifies to a public body conducting an investigation, or reports or refuses to participate in fraudulent or criminal activity.  The sponsor of the bill argues that taxpayers have the right to know how their money is being spent, including the amount used as settlement proceeds in CEPA actions.
 
The bill would designate settlements under CEPA that involve the State of New Jersey as “public records” available to anyone.  The catalyst for this proposed legislation derives from a settlement involving the State and a former County Assistant Prosecutor.  On October 4, 2016, the settlement (in the amount of $1.5 million) was publicly disclosed for the first time, even though the terms were finalized in early August.  The case, now settled, is Barlyn v. Dow, 92 A.3d 1166 (N.J. App. Div. 2014).

Opponents of the proposed legislation argue that if the State is forced to make public both the amount and details of a CEPA settlement, the State will be less likely to engage in settlement negotiations.  The proposed legislation is still under consideration.