Labor Dispute Over Dismissal Triggered Appeals Court Stay
North Carolina businesses should review documentation policies after the Department of Labor contested an employment ruling.
Updated on Oct. 12, 2026 in Human Resources
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The North Carolina Court of Appeals granted a temporary stay on an administrative law judge's ruling that favored a former Department of Labor employee. The dispute centers on whether the dismissal of Beth Benson for alleged policy violations was conducted with just cause.
Why it matters
The case highlights the operational risk of termination policies when employees challenge whether job-related conduct justifies dismissal. Employers face potential compliance hurdles if administrative rulings require them to reinstate staff or create new positions while legal appeals remain active.
The dispute involves a 20-year veteran of state agencies and centers on an investigation into 6 hours of unauthorized web browsing logged over a 20-workday period. The Department of Labor currently faces an unresolved administrative order that reversed their finding of just cause for termination.
The players
North Carolina Department of Labor
A state agency responsible for overseeing employment practices, safety regulations, and labor compliance for North Carolina workers.
Beth Benson
An HR manager at the Department of Natural and Cultural Resources with 20 years of state service who is contesting her 2026 termination.
North Carolina Court of Appeals
The state's intermediate appellate court tasked with reviewing legal errors in lower court and administrative agency proceedings.
The details
The Department of Labor dismissed Beth Benson in January 2026, alleging she violated the agency's Acceptable Use Policy by browsing for jobs during work hours. After an administrative law judge reversed the termination in September 2026, the department filed an emergency petition to block the requirement of potentially creating a new job position. The Court of Appeals stay temporarily halts these compliance requirements while the department pursues a formal appeal of the just cause finding.
Timeline
2004: Beth Benson began her tenure in state government.
January 2026: The Department of Labor dismissed Beth Benson.
September 16, 2026: An administrative law judge ruled in favor of Benson.
October 2, 2026: The Appeals Court granted a temporary stay to the department.
October 9, 2026: Benson filed a response challenging the department's appeal arguments.
Market Landscape
This litigation highlights the strict enforcement of the Acceptable Use Policy regarding state resources and work hours. It follows a pattern of disputes where government agencies grapple with the administrative standard for justifying staff dismissals.
Business owners should ensure their own acceptable use policies define 'just cause' and 'authorized usage' with enough precision to withstand administrative scrutiny. Operators should consult with counsel to confirm that documented policy violations align with local employment statutes before moving to terminate personnel.
The takeaway
The case demonstrates that even clear policy violations can become complex legal liabilities if the process for termination is not rigorously aligned with administrative standards. Review internal disciplinary procedures now to ensure that metrics like internet usage are explicitly tied to the criteria for just-cause separation.
Further reading
For more on managing employee conduct, visit the Human Resources section.
Source note: This article includes information reported by Carolina Journal.
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