Appellate Court Lowers Threshold for Establishing CEPA Whistleblower Status

What Happened?

On April 30, 2026, the New Jersey Appellate Division reinstated a Plaintiff’s Conscientious Employee Protection Act (“CEPA”) and common law wrongful termination claims, finding that potential HIPAA violations were enough to bestow whistleblower status on Plaintiff. In doing so, the Court emphasized that a Plaintiff under CEPA is not required to prove that an employer actually violated the law, but merely that the employee reasonably believes this to be the case. The Court found Plaintiff’s complaint sufficiently alleged that she held a reasonable objective belief that defendants conduct “may arguably violate HIPAA” and therefore, was worthy of surviving a motion to dismiss.

What Do You Need to Know?

The Court’s ruling in Granados suggests a broader application of CEPA standards, providing Plaintiffs a course of action even if they do not possess evidence that an employer affirmatively violated the law. Accordingly, employers can expect that if an employee has a reasonable belief that the employer potentially violated the law, the Court will allow the claim to survive the pleadings stage.

Next Steps…

Employers should anticipate that even perceived violations of the law can now fuel colorable CEPA claims. Given that an employee only needs a reasonable belief of a potential violation, employers should create clear reporting channels so that concerns are raised and addressed internally before they escalate to litigation. If employers have any questions about developing appropriate reporting and retaliation policies, they should consult with their counsel.