The Appellate Division has recently reaffirmed that to establish a successful CEPA claim an employee must further show that a “causal connection exists between the whistleblowing activity and the adverse employment action.” A court will infer, based on the surrounding circumstances, whether or not a causal connection exists between adverse employment consequences and the protected event. The Court also held that
in CEPA actions, an employer may only be held liable for punitive damages if there is (1) “actual participation by upper management or willful indifference” and if (2) “the wrongdoer’s conduct is especially egregious.”

Duym v. Twp. of Millburn, 2015 N.J. Super. Unpub. LEXIS 2429 (App.Div. Oct. 23, 2015)