NJ Appellate Court Reinstates Whistleblower and Retaliation Claims Following Early-Stage Dismissal

A recent decision from the New Jersey Appellate Division serves as a strong reminder to employers: workers who speak up about unsafe conditions or violations of state regulations cannot be retaliated against. In Hussain v. Allies, Inc., the court revived a former group home manager’s whistleblower and wrongful discharge claims after she was fired shortly after raising concerns about staff training, resident care, and wage issues. The ruling clarifies important protections under New Jersey’s whistleblower law—and reinforces that workers cannot be punished for trying to report violations of the law.

At Rabner Baumgart Ben-Asher & Nirenberg, P.C., we help workers across Bergen County and throughout New Jersey assert their rights under the Conscientious Employee Protection Act (“CEPA”), especially when employers retaliate after health and safety concerns are raised.

What Happened in This Case?

Sharon Hussain was employed as a Support Manager at a group home operated by Allies, Inc. Her job involved overseeing staff responsible for the care of individuals with developmental disabilities. During her employment, she voiced serious concerns to her supervisors, including that:

• staff-to-resident ratios were dangerously low and inconsistent with state regulations.
• employees lacked proper medical training, such as how to check residents’ blood sugar.
• training for care staff relied primarily on videos and did not meet hands-on requirements mandated by law.

Her concerns were based on regulations in New Jersey’s Administrative Code, specifically N.J.A.C. 10:44A-2.7, which outlines training requirements for staff caring for developmentally disabled residents.

Shortly after Ms. Hussain raised these concerns, her employer denied her request for paid time off (“PTO”). In response, Ms. Hussain filed a complaint with the New Jersey Department of Labor. Soon after that, her employer placed her on a disciplinary plan and then terminated her employment. She sued, claiming that her termination was in retaliation for raising safety and staffing concerns and for filing a complaint with the Department of Labor.

The Trial Court’s Ruling and the Appellate Court’s Reversal

The trial court dismissed Ms. Hussain’s lawsuit at an early stage, claiming she failed to show a clear connection between her termination and any public policy or legal violations. The court also denied her the opportunity to amend her complaint.

But the Appellate Division reversed that ruling.

The appellate court emphasized that at the pleading stage, a judge must assume the employee’s allegations are true and give them the benefit of every reasonable inference. It found that Ms. Hussain’s claims—if proven—could support a case under both CEPA and common law wrongful termination principles. Thus, the appellate court held that the lower court had improperly dismissed Ms. Hussain’s case and reinstated it.

Key Takeaways for New Jersey Workers

1. You Do Not Need to Prove Your Employer Violated the Law—Just That You Reasonably Thought They Did.
   Under CEPA, employees are protected when they report or object to conduct they reasonably believe violates a law, a regulation, or a clear mandate of public policy relating to public health, safety, welfare of the environment. The court made clear that Ms. Hussain did not need to prove her employer broke the law—only that she reasonably believed they did.
2. Complaints About Resident Care Can Trigger CEPA Protections.
   The court pointed to the relevant state regulation requiring staff to receive proper training in areas such as medication administration, CPR, and first aid. If an employee believes these training standards are being ignored, raising that concern can be protected conduct.
3. Retaliation Can Take Many Forms.
   In Hussain’s case, the court found that being put on a disciplinary plan and then fired after raising concerns and filing a complaint was enough to allege retaliation. Retaliation does not always follow immediately after your complaint and does not need to come directly from the person you complained about.
4. Even “At-Will” Employees Have Rights.
   Employers often claim they can fire “at-will” employees for any reason—but that is not how the law works; employers cannot fire an employee if the termination violates a clear mandate of public policy. That’s the principle behind New Jersey’s common law wrongful discharge claims, a related claim that Ms. Hussain asserted which the court also reinstated.
5. Courts Must Allow Whistleblower Claims to Proceed When Sufficient Facts Are Alleged.
   The Appellate Division made clear that courts should not dismiss whistleblower claims unless it is clear that, even if every fact is resolved in their favor, the worker still cannot succeed on her case.

Have You Been Retaliated Against?

If you have been retaliated against for raising health or safety concerns, reporting unlawful behavior, or filing a complaint with a state agency, then you may have a valid whistleblower or wrongful termination claim.

At Rabner Baumgart Ben-Asher & Nirenberg, P.C., we represent workers who stand up for what is right and face retaliation for doing so. Our team has decades of experience handling whistleblower claims under CEPA and related New Jersey employment laws.

If you believe your employer punished you for raising concerns or asserting your rights, we are here to help. Call us at (201) 777-2250 or contact us online to schedule a confidential consultation with a Bergen County employment lawyer.