RALEIGH, N.C. — A former employee of the North Carolina Department of Insurance has filed a federal lawsuit against Michael “Mike” Causey, alleging sexual harassment, discrimination, retaliation, and violations of federal disability law during her employment with the agency.
The lawsuit was filed in the U.S. District Court for the Middle District of North Carolina by April Elaine Taylor, who names Causey, the North Carolina Department of Insurance, and the State of North Carolina as defendants.
According to the complaint, Taylor worked for the department from 2017 until her resignation in March 2026 after nearly two decades of state service. The lawsuit alleges that a longtime personal relationship and family friendship between Taylor and Causey existed before he became commissioner.
Allegations Described In Complaint
Taylor alleges that she was subjected to years of unwanted sexualized communications and advances by Causey while employed by the department. The complaint contends that Causey used his position as agency head to engage in conduct that created a hostile work environment.
Among the allegations are claims that Causey sent inappropriate text messages and made comments that Taylor says made her uncomfortable. The lawsuit also alleges that the commissioner repeatedly crossed professional boundaries during her employment.
One of the most serious claims in the filing alleges that Causey entered Taylor’s office during work hours, closed the door, hugged her, and kissed her without her consent while on state property.
The lawsuit further claims that Taylor experienced isolation, hostility, diminished job duties, and retaliation after attempting to raise concerns about issues within the department.
Claims Of Emotional Harm
Taylor alleges that the conduct worsened pre-existing anxiety and other mental health conditions. According to the lawsuit, the cumulative effect of the alleged harassment and workplace retaliation eventually led to her resignation in March 2026.
The complaint seeks compensation for lost wages, emotional distress, punitive damages, and other relief to be determined by the court. Taylor has also requested a jury trial.
Ethics Complaint Preceded Federal Lawsuit
The federal action follows an ethics complaint Taylor filed earlier this year with the North Carolina State Ethics Commission.
In that complaint, she accused Causey of sexual harassment and alleged misuse of state resources. The Ethics Commission ultimately dismissed the complaint, finding that the allegations did not constitute a violation of the state’s Ethics Act.
That dismissal did not address the federal employment, discrimination, harassment, or retaliation claims now being litigated in federal court.
Department Declines Comment
Representatives for the North Carolina Department of Insurance have stated that the agency does not comment on pending litigation.
Causey previously denied wrongdoing when similar allegations became public earlier this year and stated that he welcomed an investigation into the claims. He has not publicly addressed the specific allegations contained in the newly filed federal lawsuit.
What Happens Next
The case is in its early stages, and no trial date has been announced. The defendants will have an opportunity to respond to the allegations through the federal court process.
As the lawsuit moves forward, it is expected to draw significant attention because it involves one of North Carolina’s highest-ranking elected officials. Causey was re-elected to a third term as Insurance Commissioner in 2024 and continues to oversee the state’s insurance regulatory system and related public safety functions.
Editor’s Note: The allegations described in this article are contained in a civil lawsuit filed in federal court. The claims have not been proven, and the defendants are presumed not liable unless and until a court determines otherwise.
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