The New Jersey Employment Law Firm Blog

January 13, 2023

How New Jersey Employment Laws Affect Remote Workers

Remote work has become common for many workers in New Jersey and around the country. The COVID-19 pandemic may have caused a transition that was already underway to speed up. The increasing amount of remote work, however, raises legal questions that might not have easy answers. When an employee who lives in New Jersey works from home for their New Jersey-based employer, it is clear that New Jersey employment laws apply to them. What happens, though, when an employee works from their New Jersey home for an employer in another state? Determining which state’s laws should apply has proven to be difficult.

The question of which state’s law applies when a work-from-home arrangement crosses state lines has no simple answer. The legal system has only begun to address it. State employment laws can significantly differ from one state to another. New Jersey offers wide-ranging protections against employment discrimination, for example, with far more protected categories than many other state laws. The state government has issued regulations allowing employers with virtual workers to make posters advising employees of their rights available online. Many other questions remain unanswered.

At least one New Jersey court has ruled on how state law applies to state residents who work outside the state. A 2013 federal court decision held that the New Jersey Law Against Discrimination (NJLAD) did not cover a New Jersey resident who worked out-of-state. The plaintiff lived in New Jersey. His employer, however, was based in Pennsylvania, and almost all of the plaintiff’s job duties occurred there. The plaintiff, who was alleging discrimination and harassment, argued that the NJLAD should apply since he received harassing messages via text and email while at home in New Jersey. The court disagreed.
Continue reading

January 6, 2023

New Jersey Employment Laws Limit Working Hours for Minors

by Resnick Law Group, P.C.

Children working in dangerous jobs are a common feature in many famous photographs from the late 19th and early 20th centuries. Child labor was common in mines, factories, and other hazardous workplaces until the 1930s when the U.S. Congress passed the Fair Labor Standards Act (FLSA). That law sets strict limits on employment for minors, including the kinds of jobs they may have and the number of hours they may work. New Jersey employment laws also regulate the hours that minors may work. The New Jersey Attorney General (NJAG) recently announced that it had settled a dispute with a restaurant chain over alleged child labor law violations. As part of the settlement, the employer reportedly agreed to pay $7.75 million in damages and fines.

The FLSA’s provisions on child labor prohibit anyone under the age of 14 from working in most jobs. Exceptions may apply with regard to jobs in agriculture, jobs within one’s family, newspaper delivery, and acting for film or television. The original purpose of the FLSA was to prevent children from working long hours in dangerous conditions. Children who are 14 or 15 years old may work limited hours in certain jobs. Between the ages of 16 and 17, the FLSA allows children to work in non-hazardous jobs for a longer number of hours.

Despite many advances in this area, child labor remains an issue throughout the country. A report on children’s rights by the organization Human Rights Watch assigned a letter grade from “A” to “F” to each state based on multiple factors, including child labor laws. While New Jersey received one of the highest grades in the country, it was still only a “C.”

December 16, 2022

New Jersey Lawsuit Alleges an Office-Wide Pattern of Sexual Harassment

by Resnick Law Group, P.C.

Sexual harassment is a form of sex discrimination under New Jersey employment law. It can range from unwelcome workplace behavior, such as sexually-charged jokes or comments, to outright sexual advances or worse. Federal and state laws in New Jersey prohibit this type of conduct, as well as retaliation against workers who report alleged unlawful activity. They also allow employees to recover damages from their employers. In November 2022, a court in Camden County awarded $7 million in damages to a group of plaintiffs who alleged widespread sexual harassment in the dental office where they worked.

Title VII of the Civil Rights Act of 1964 and the New Jersey Law Against Discrimination (NJLAD) prohibit employment discrimination on the basis of sex. This includes sexual harassment. Federal and state courts have identified two main types of sexual harassment:
– Quid pro quo sexual harassment occurs when an employee or job applicant must submit to sexual demands in order to obtain an employment-related benefit or avoid a penalty. A hiring manager, for example, might tell a job applicant that the job is theirs, but only if they agree to sexual activity.
– A hostile work environment occurs when a workplace features recurring or severe sexual conduct. The harassment must be serious enough that it interferes with someone’s ability to do their job. It may come from anyone in the workplace, such as a supervisor, coworker, or customer.

Eight women filed suit against their employer, a dental practice with offices in several areas of New Jersey, in 2016. They alleged multiple violations of the NJLAD. The defendants include multiple business entities and individual owners, managers, and supervisors. In an amended complaint filed in 2020, the plaintiffs describe the dental offices as a “sexual harassment playground” for several managers. They allege an ongoing pattern of “unwelcome sexual advances and flirting,” “unwanted touching and groping,” and requirements that “certain female employees…submit to sexual advances and flirting as a condition of employment.”
Continue reading

December 12, 2022

What New Jersey Workers Should Know About Sexual Harassment Laws and Office Holiday Parties

by Resnick Law Group, P.C.

The holiday season often presents opportunities for people to relax with their coworkers at a holiday party hosted by their employers. Office holiday parties sometimes have a reputation for being raucous events, often featuring abundant amounts of alcohol. Unfortunately, sometimes people use holiday parties as an opportunity for misconduct. The fact that people are drinking, or that the office holiday parties only occur once a year, are not excuses for acts that would be unlawful if they occurred at work. In fact, office holiday parties are part of the work environment regardless of where they take place. Unwanted sexual advances are just as unlawful at a holiday party as in the workplace. Employees who experience sexual harassment at a holiday party may have legal rights under New Jersey employment laws.

What Is Sexual Harassment?

Sexual harassment is a type of sex discrimination under laws like the New Jersey Law Against Discrimination (NJLAD) and Title VII of the Civil Rights Act of 1964. It can take many forms, but it generally involves unwelcome conduct of a sexual nature that is based, at least in part, on an employee’s sex. It can involve a wide range of behavior, from overt sexual advances to sexually-charged comments or jokes. Courts have identified two broad categories of sexual harassment, both of which can occur at holiday parties.

Quid Pro Quo Sexual Harassment

This type of sexual harassment occurs when someone in a supervisory or managerial position expects an employee to agree to some sort of sexual activity as a condition of their employment. The term “quid pro quo” refers to an exchange. In this type of situation, an employee is expected to agree to a sexual demand in exchange for getting a job, keeping a job, or receiving better work conditions. A classic example involves a restaurant manager who gives the best shifts to servers who submit to whatever sexual activity they are demanding.
Continue reading

December 2, 2022

New Proposed Independent Contractor Rule Could Help New Jersey Workers

by Resnick Law Group, P.C.

Employment laws in New Jersey and at the federal level guarantee a minimum wage and overtime pay for many employees, as well as many other protections. In order to take advantage of these legal safeguards, a worker must demonstrate that an employment relationship exists between them and their employer. The definition of an “employee” in federal and New Jersey employment statutes is rather vague. The U.S. Department of Labor (DOL) recently issued proposed rules that would establish a new test to determine whether a worker is an employee or an independent contractor. The current rule, which the DOL put in place under the previous presidential administration, is generally favorable to employers. New Jersey’s rule for state law claims presumes that a worker is an employee unless an employer can prove otherwise.

The employer-employee relationship is a complicated concept, legally speaking. It draws on legal theories about an employer’s authority to exert control over a person. For example, how much say does an employer have over when, where, and how a worker does their job? Do they have a specific workstation, monitored by supervisors, where the worker must be during specific working hours? If so, the worker is probably an employee. An independent contractor typically has more autonomy over their work. A large body of federal and state laws protect employees’ rights. An independent contractor’s rights depend on the terms of their contract with the employer.

The DOL’s current rule tends to favor employers. Unlike the New Jersey rule, the federal rule does not presume employee status. It uses two “core factors” to determine a worker’s status: (1) How much control is the worker able to exert over their work? (2) Are they able to earn more money by any means other than increasing their production or working more hours? The more control a worker has over their work and their income, the more likely a federal court will be to classify them as an independent contractor.
Continue reading

November 28, 2022

Tech Company Layoffs Raise Questions About Workers’ Rights in New Jersey and Throughout the Country

by Resnick Law Group, P.C.

Since New Jersey is an “at-will employment” state, employers can terminate employees for any reason, or for no reason at all, as long as they do not violate local, state, or federal law. The good news for workers is that New Jersey employment laws provide numerous protections against termination for certain reasons and in certain ways. An employer cannot fire someone primarily because of factors like race, religion, sex, sexual orientation, disability, and others. They cannot terminate an employee in retaliation for protected activities like whistleblowing. Both federal and New Jersey employment laws set limits on mass layoffs. The federal Worker Adjustment and Retraining Notification (WARN) Act requires advance notice of large-scale layoffs. New Jersey also has a WARN Act (NJWARN) that provides workers with additional rights. The WARN Act has been in the news recently. A major tech company is facing several class actions under state and federal WARN Acts because of mass layoffs.

The federal WARN Act applies to employers who meet one of the following criteria:
– They have at least one hundred full-time employees; or
– They have one hundred or more full- or part-time employees who collectively work at least 4,000 hours per week.
The NJWARN Act is slightly different. It applies to employers that have been in business for more than three years and have at least one hundred employees.

Both laws require employers to give notice at least sixty days in advance of mass layoffs that will result in five hundred or more employees losing their jobs in a thirty-day period. The WARN Act requires notice to all affected employees or their union. The NJWARN requires employers to give notice to both the employees and their union.
Continue reading

November 21, 2022

Pending New Jersey Bill Would Limit Non-Compete Agreements in Employment

by Resnick Law Group, P.C.

Employment agreements often contain clauses and terms intended to protect an employer’s business interests. When a contractual provision limits an employee’s actions, it is known as a restrictive covenant (RC). Sometimes, RCs create difficulties for employees. A common type of RC is the non-compete agreement, which bars an employee from accepting work with the employer’s competitors under various circumstances. Many workers may feel like they are not in a position to try to negotiate different terms with a current or prospective employer. New Jersey employment law sets limits on the extent of RCs in employment or severance agreements. A bill pending before the New Jersey Legislature would expand the limits on some RCs, including non-compete agreements, and provide employees with additional rights.

A non-compete agreement may prohibit an employee from working for a competitor while employed by the employer. It may also prohibit employment with a competitor after the employee no longer works for the employer. In order to be enforceable, a non-compete agreement must be very clear about its terms, such as who counts as a competitor and how long the agreement remains in force for the employee. A 1970 decision by the New Jersey Supreme Court identified three elements that a non-compete agreement must satisfy:
1. The scope of the agreement is limited to the employer’s “legitimate interests.”
2. The agreement does not place an “undue hardship” on the employee.
3. The agreement is not “injurious to the public.”

The bill in the New Jersey Legislature, A3715, is currently pending before the Assembly Oversight, Reform and Federal Relations Committee. It identifies multiple groups of people who may not be subject to non-compete agreements at all, including anyone who is considered exempt under the Fair Labor Standards Act, undergraduate or graduate interns, temporary or seasonal workers, independent contractors, employees who are less than 18 years old, and employees who were employed for less than one year. For anyone who could be subject to a non-compete agreement, the bill sets numerous limitations on the agreement’s terms.
Continue reading

November 4, 2022

New Jersey Class Action Alleges Wage Violations at Theme Park

by Resnick Law Group, P.C.

Workers are entitled to payment for all hours that they perform work for their employers under federal and New Jersey employment laws. Employers must pay non-exempt employees at a rate equal to or greater than the minimum wage set by state law. They must also pay all wages owed to their employees at the end of each pay period. Employers who fail to meet these duties could be liable to their employees for damages. A worker at a New Jersey theme park recently filed a class action in federal court alleging state wage law violations. She claims that the defendant required employees to perform unpaid work both before clocking in and after clocking out.

The lawsuit cites three provisions of New Jersey law. First, the New Jersey Wage and Hour Law (NJWHL) requires employers to pay at least minimum wage to their non-exempt employees. In 2022, the statewide minimum wage is $13 per hour. It will increase to $14.13 per hour on January 1, 2023. It will continue to increase annually until it reaches $15 per hour at the beginning of 2026.

New Jersey employment regulations require employers to pay their workers “for all hours worked.” This generally includes all activities required by employers, particularly those on the employer’s premises. The plaintiff cites two decisions from the U.S. Supreme Court addressing what sorts of activities count as compensable work:
– In Tennessee Coal, Iron & R. Co. v. Muscoda Local No. 123 (1944), the court held that iron ore miners were entitled to pay for the time they spent traveling to and from the “working face” of the mine. The trip often involved a precarious journey of 3,000 to 12,000 feet through dark underground tunnels.
– The plaintiffs in Anderson v. Mt Clemens Pottery Co. (1946) had to walk across an eight-acre facility to get from the time clocks to their work areas. This could take up to an hour each day. The court held that this time was compensable.
Continue reading

October 28, 2022

Interim Guidelines Address Employment Protections in New Jersey Cannabis Law

by Resnick Law Group, P.C.

Since early 2021, New Jersey employment law has protected workers in this state from discrimination or other adverse employment actions based on their use of cannabis outside work, as well as their refusal to engage in cannabis use. Employers may still prohibit the use of cannabis in the workplace, and they may take reasonable measures to prevent employees from working while under the influence of cannabis. State law limits the use of drug testing by employers, but the New Jersey Cannabis Regulatory Commission (NJCRC) still has not issued final guidelines on this part of the law. It issued extensive guidelines in September 2021 that did not address employment issues. One year later, the NJCRC issued interim guidance on employment, which offers some direction on workplace drug testing.

The New Jersey Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act (CREAMMA) became law in February 2021. Section 48 of CREAMMA, codified as § 24:6I-52 of the New Jersey Revised Statutes, addresses cannabis in the workplace. It prohibits discrimination based on an employee’s or job applicant’s cannabis use, or lack thereof. If an employee tests positive for cannabinoid metabolites because of cannabis use that is legal under CREAMMA, their employer may not take adverse action against them solely on that basis.

The statute allows employers “to maintain a drug- and alcohol-free workplace,” such as by not allowing employees to be under the influence of cannabis during work hours. Employers may require their employees to submit to drug tests under certain circumstances:

October 21, 2022

Bill Pending in New Jersey Legislature Would Improve Rights for Temporary Workers

by Resnick Law Group, P.C.

New Jersey employment laws protect workers against multiple kinds of abuses by employers, such as failure to pay minimum wage or overtime, requiring unpaid work time, and unlawful payroll deductions. Both state and federal statutes address wage and hour violations, but these protections only apply to “employees.” The legal definition of this term rarely includes temporary workers. A bill pending in the New Jersey Senate would create a “Temporary Workers Bill of Rights” that extends many of the legal protections enjoyed by employees to people who work for staffing agencies. The bill has faced multiple hurdles since its introduction in early 2022. While its future is uncertain, lawmakers in support of the bill say it still has a chance at passage.

The federal Fair Labor Standards Act (FLSA) and the New Jersey Wage and Hour Law (WHL) set a minimum wage for non-exempt employees. They also require employers to pay non-exempt employees time-and-a-half for any time they work over forty hours in a week. Neither statute has a detailed definition of “employee.” They both define the term as “any individual employed by an employer.” The protections offered by these laws often do not extend to individuals who work for staffing agencies contracted by other companies to provide temporary workers.

In the most recent version of the pending bill, A1474, the Legislature states several findings related to temporary workers and their working conditions. “[T]emporary help service firms, sometimes referred to as temp agencies or staffing agencies,” employ about 127,000 people in New Jersey. The state has licensed around one hundred temp agencies, while an unknown number of unlicensed agencies “operate outside the purview of law enforcement.” Temporary jobs are heavily concentrated in “service occupations,…production, transportation, and material moving occupations and manufacturing industries.”
Continue reading