Labor Department Appealed Ruling on Fired Employee
The state agency challenged a judge's order to reinstate a former worker and provide back pay.
Updated on Sept. 30, 2026 in Human Resources
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The North Carolina Department of Labor has filed an emergency court petition to stay an administrative judge's order that would require the agency to reinstate a former employee, Beth Benson. The department is fighting a ruling that overturned her 2026 termination and ordered the state to provide back pay dating to January.
Why it matters
The dispute centers on whether an administrative law judge had jurisdiction over discrimination and retaliation claims regarding the termination of a state worker. The case highlights broader tensions over civil service protections and state employment policies under Labor Commissioner Luke Farley.
The administrative judge ordered back pay for Benson starting Jan. 14, 2026, following her termination from the agency earlier that year. The state agency maintains that the position is now an exempt managerial role.
The players
Beth Benson
She is a state worker who was dismissed from the Department of Labor in 2026 and currently serves as an HR manager in the Department of Natural and Cultural Resources.
Luke Farley
He is the North Carolina Labor Commissioner who took office in January 2025.
North Carolina Department of Labor
This state agency is responsible for overseeing labor standards and is the entity currently challenging the administrative ruling regarding a former employee.
North Carolina Court of Appeals
This is the judicial body where the state agency has filed an emergency petition to halt administrative deadlines.
The details
The department argued that Benson violated the Acceptable Use Policy by using a state computer for personal job searches. While Benson currently holds a position in the Department of Natural and Cultural Resources, the state may be forced to create a new role if the court upholds the judge's mandate during the ongoing legal battle.
Timeline
Beth Benson began her career in North Carolina state agencies in 2004.
Luke Farley took office as the North Carolina Labor Commissioner in January 2025.
The administrative law judge issued a final decision on Sept. 16, 2026.
The department filed a notice of appeal on Sept. 28, 2026.
Market Landscape
This legal challenge reflects broader friction within state agencies over the classification of managerial roles under the State Human Resources Act. The outcome may set a precedent for how departments balance executive staffing exemptions against long-term civil service protections.
For taxpayers and state employees, this case illustrates how administrative staffing decisions can lead to prolonged and costly legal battles between government departments. It underscores the importance of internal policy compliance regarding the use of state equipment.
The takeaway
This case serves as a reminder of the legal complexities involved in terminating state personnel when disputes arise over jurisdiction and conduct policies. Maintaining clear documentation of compliance with acceptable use policies remains a critical defense for both agencies and employees.
Further reading
For more on state employment policies, visit the Human Resources section.
Source note: This article includes information reported by Carolina Journal.
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