Court Rejects Labor Department Firing Appeal
State employers should review disciplinary standards following the court's rejection of a termination for minor policy violations.
Updated on Oct. 26, 2026 in Jobs — General
Live Poll
Should government agencies have broad authority to fire employees for minor violations of work policies?
The North Carolina Court of Appeals has denied the Department of Labor's attempt to reverse a ruling that found no just cause for the 2026 termination of employee Beth Benson. The court dissolved a temporary stay, signaling that the department must comply with the prior decision favoring the former staffer.
Why it matters
The case highlights the operational risk of termination decisions when acceptable use policies are enforced inconsistently. For employers, the ruling underscores that documented policy violations must meet clear standards for just cause to survive administrative scrutiny.
The dispute centers on a worker with over 20 years of state service who was dismissed in January 2026 for 6 hours of personal browsing over 20 workdays. An administrative law judge ruled the firing lacked just cause, a finding now upheld by the state Court of Appeals.
The players
North Carolina Court of Appeals
The intermediate appellate court responsible for reviewing decisions made by state agencies and administrative law judges.
Department of Labor
The state regulatory agency responsible for overseeing labor standards and workplace safety, led by Commissioner Luke Farley.
Beth Benson
A long-term state employee who successfully challenged the department's decision to terminate her employment.
The details
The Department of Labor fired the employee for allegedly using state time to browse for new jobs, citing a violation of the Acceptable Use Policy. After the Office of Administrative Hearings ruled the termination lacked just cause, the department attempted to block the decision by filing an emergency petition. The Court of Appeals rejected this move, effectively finalizing the lower court's ruling in favor of the employee.
Timeline
January 2026: The Department of Labor dismissed Beth Benson.
September 16, 2026: An administrative law judge issued the final decision ruling against the termination.
October 23, 2026: The Court of Appeals issued orders rejecting the department's requests to hear the appeal.
Market Landscape
This dispute marks a departure from standard agency practice regarding the strict application of the North Carolina Acceptable Use Policy. It suggests that administrative courts are increasingly applying rigorous scrutiny to the proportionality of discipline for minor policy infractions.
Operators should ensure that termination policies are applied consistently and that any disciplinary actions are supported by documentation that proves just cause. Relying on technology usage policies to justify dismissal requires clear, evidence-based proportionality to withstand legal challenges.
The takeaway
This case serves as a warning that procedural missteps in firing employees can result in costly and unsuccessful litigation. Owners should establish clear thresholds for what constitutes a fireable policy breach to avoid similar outcomes in future personnel disputes.
Further reading
For additional context on workforce management and compliance, explore our Jobs — General section.
Source note: This article includes information reported by Carolina Journal.
Live Poll
Should government agencies have broad authority to fire employees for minor violations of work policies?
