[ebarker]

First off I would strongly suggest having a professional electrician that works to 'code' repair the damage.

From your description this does not meet building code or professional practice.

I'm quoting from memory but if I remember correctly to meet code in your statea a 20 amp breaker requires a 3 wire 12 gauge circuit. Black is hot, White is neutral, and green is ground.

16 gauge wire should not be in this mess.

I don't really understand how this circuit is wired but commonly a dishwasher is on its own circuit breaker, and maybe it's own GFCI breaker.

You need GFCI on any circuit where you could come into contact between an appliance on the circuit and a ground, like a sink.

And just to file a couple of personal complaints against the US building code I'll keep on yakking.

a - I don't like those outlets where you strip the wire and stick it in a hole in the outlet instead of screwing it down. I've seen too many failures of that.

b - I don't like the standard plug and socket arrangement in North America. If electricty was invented today that would NEVER get past regulatory compliance. A much better arrangement is the IEC connector. Look at the cord that plugs into the back of your computer or monitor. It is impossible to get your fingers wedged between conductors of the IEC whereas the other end of the cable is very dangerous.