Liability Protection for State Board Members

State Board Members Now Have Liability Protection

 – May 13, 2019
State Board Members Now Have Liability Protection

A new law provides liability protection to all people serving on professional/occupational boards in New Jersey. The NJCPA strongly supported this bill.

In February 2015, the U.S. Supreme Court issued a 6-3 ruling in North Carolina State Board of Dental Examiners v. F.T.C. (NC Dental) effectively limiting the conditions under which members of a state regulatory board – such as accountancy boards – may claim immunity from antitrust laws.

While the details of the case were particular to dentists, the ramifications applied equally to many state regulatory boards, including the New Jersey State Board of Accountancy, and put board members at risk of being personally sued for the actions taken as board members. This presented a problem not only for individual board members, but for the profession as a whole, as fewer qualified CPAs would be willing to serve on their state boards.

The new law rectifies this situation by amending New Jersey statutes to provide liability protection to all professional/occupational board members. 

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