The New Jersey Employment Law Firm Blog

May 18, 2023

U.S. Supreme Court to Hear Case Involving Whistleblower Protection Law

People who believe that their employers have engaged in illegal or unethical behavior should be able to come forward without fear of losing their jobs or facing other forms of retaliation. New Jersey employment law offers broad protections for whistleblowers who report alleged wrongdoing by their employers and engage in other protected activities. At the federal level, numerous statutes include whistleblower protections in specific industries or for specific types of claims. The Sarbanes-Oxley Act of 2002 (SOX), for example, protects employees of publicly-traded corporations who report alleged fraud or violations of securities laws. The U.S. Supreme Court recently agreed to hear a case involving a dispute over who has the burden of proving “retaliatory intent” in SOX whistleblower cases.

New Jersey’s Conscientious Employee Protection Act (CEPA) prohibits employers from “tak[ing] any retaliatory action” against an employee for numerous protected activities. These may include the following:
– Reporting or threatening to report activities that the employee reasonably believes are illegal, unethical, or fraudulent;
– Cooperating with investigations or hearings regarding suspected illegal acts by the employer;
– Testifying in connection with such investigations;
– Objecting to activities or policies that the employee believes are unlawful, fraudulent, or against public policy; and
– Reporting an alleged violation of CEPA.

While CEPA applies to all employers in New Jersey, the whistleblower protection provisions in SOX only apply to employers that are also publicly-traded corporations governed by the Securities Exchange Act of 1934 and Securities and Exchange Commission (SEC) regulations. The statute’s list of protected activities is similar to CEPA’s list, except that it only applies to reports and investigations related to certain types of fraud, including wire fraud, bank fraud, and securities fraud, as well as violations of SEC regulations and other securities laws.
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May 12, 2023

New Jersey Court Allows Wrongful Termination Case Based on Legal Cannabis Use to Proceed

by Resnick Law Group, P.C.

The New Jersey Legislature passed a law in 2021 that legalizes the recreational use of cannabis. The New Jersey Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act (CREAMMA) protects employees against adverse actions by their employers based on legal cannabis use. While the state has issued guidelines that address how employers should handle issues like impairment in the workplace, many aspects of the new law’s employment protections have yet to be tested in the courts. A New Jersey federal court recently ruled in favor of a plaintiff who has alleged wrongful termination by his employer in violation of CREAMMA, denying the defendant’s motion to dismiss.

The employment provisions of CREAMMA attempt to balance employees’ legal rights with employers’ interest in maintaining drug-free workplaces. Employers may not refuse to hire someone because they engage in legal cannabis use, nor may they fire them or take other adverse actions against them for that reason. Employees also have the right to refuse to engage in activities that are legal under CREAMMA. Drug testing by employers is allowed under certain circumstances. Employers may require that employees abstain from legal cannabis use and not be under the influence of cannabis during work hours. With some exceptions, though, they cannot prohibit lawful use outside of work.

The lawsuit described above arose from an automobile accident in late 2021 involving the plaintiff, who was driving a company vehicle at the time. According to the court, the plaintiff was not under the influence of cannabis or any other substance, nor did anyone suspect that he was. The employer required the plaintiff to submit to a drug test as a standard part of its safety policy. The plaintiff claims that, prior to the drug test, he alerted the employer about cannabis use outside of work about two weeks earlier. The test was positive for cannabis, resulting in the plaintiff”s immediate suspension.
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May 5, 2023

NLRB Bars Employers from Including Non-Disparagement Clauses in Severance Agreements

by Resnick Law Group, P.C.

Workers have the right to organize themselves in order to bargain collectively with their employers and advocate for better working conditions. Federal and New Jersey employment laws protect these rights and prohibit employers from interfering with or retaliating against employees who are engaged in lawful activities. The National Labor Relations Board (NLRB) adjudicates disputes over alleged violations of federal labor laws. In February 2023, it issued a ruling that invalidates a non-disparagement clause that an employer included in severance agreements for a group of employees it had just laid off. The NLRB found that the employer could not require workers to waive such a large number of legal rights. The following month, the NLRB’s General Counsel (GC) issued a memorandum providing guidance to NLRB directors and officers on how to implement this decision.

Section 7 of the National Labor Relations Act (NLRA) identifies a broad range of rights enjoyed by workers. This includes “the right to self-organization” and to join or form a labor union for the purpose of collective bargaining. The section also states that workers have the right to engage in “other concerted activities for the purpose of…mutual aid or protection.” The NLRB and the courts have interpreted this as providing rather broad protection of workers’ right to communicate among themselves and with others about various features of employment, such as working conditions and wages.

The case recently before the NLRB involved a hospital and a union representing various service employees. The hospital furloughed numerous employees at the beginning of the COVID-19 pandemic in 2020. It made the temporary furlough permanent for eleven union members later that year. Each of these employees received a “Severance Agreement, Waiver and Release” that offered a severance package in exchange for their signature. According to the NLRB’s ruling, the hospital did not inform the union of the furloughs or the severance agreements.
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April 28, 2023

New Jersey Appellate Division Reinstates Disability Discrimination Claim in Employment Lawsuit

by Resnick Law Group, P.C.

Disability discrimination is unlawful under both federal and state laws. Employers may not refuse to hire a job applicant because of a disability, nor may they fire, demote, refuse to promote, or deny various other employment features to an employee. Federal and state laws apply these protections both to individuals with qualifying disabilities and individuals who are perceived as having a disability. A plaintiff asserting a claim for damages under New Jersey employment law has the burden of proving that their employer based their discriminatory act or acts on a qualifying disability. In a case involving perceived disability, the plaintiff must also prove that the employer had this perception. The New Jersey Appellate Division recently allowed a disability discrimination case to proceed. It ruled that the plaintiff was entitled to gather evidence regarding their employer’s perceptions and intent.

The New Jersey Law Against Discrimination (NJLAD) provides a broad definition of “disability” that includes a wide range of physical and psychological conditions. New Jersey courts have long held that the NJLAD’s provisions on disability discrimination apply to perceived disabilities just as much as actual ones. In other words, an employer violates the NJLAD when it believes an employee has a disability and discriminates against them because of that perceived disability.

The plaintiff in the lawsuit described above alleged that the defendants unlawfully discriminated against her because of a perception that she was an alcoholic. The New Jersey Supreme Court ruled in 1988 that alcoholism may qualify as a disability under the NJLAD.
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April 21, 2023

Congress Amends, Strengthens Whistleblower Protection Law

by Resnick Law Group, P.C.

Our legal system encourages people who have information about wrongdoing by their employers to come forward and report what they know. This may involve violations of employment statutes, fraud or other criminal acts, or other forms of misconduct. Some statutes provide rewards for employees, known as “whistleblowers,” who provide information that leads to successful civil or criminal enforcement actions. Both federal and New Jersey employment laws protect whistleblowers from retaliation by their employers. The Anti-Money Laundering Act (AMLA), which the U.S. Congress enacted in 2020, includes whistleblower protections. At the end of 2022, Congress enacted the Anti-Money Laundering Whistleblower Improvement Act (AMLWIA). This law protects a wider range of individuals who report alleged unlawful activity. It also increases financial incentives for people to come forward.

In New Jersey, the Conscientious Employee Protection Act (CEPA) bars retaliation by employers against employees who engage in various whistleblowing activities. This might include:
– Reporting, or threatening to report, an activity that the employee reasonably believes is unlawful to a supervisor or regulatory agency;
– Participating in a public investigation or hearing that relates to alleged unlawful activity by the employer; or
– Objecting to or refusing to participate in an activity that the employee believes is illegal, fraudulent, or against public policy.

An employee in New Jersey who believes that their employer has retaliated against them in violation of CEPA has one year to file a lawsuit. Damages may include lost wages and benefits, reinstatement with full benefits and seniority, injunctive relief, and attorney’s fees.
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April 14, 2023

EEOC Issues Guidance for New Jersey Employment Law Regarding Disability Discrimination Based on Hearing Loss

by Resnick Law Group, P.C.

Federal and New Jersey employment laws prohibit discrimination on the basis of disability, which includes hearing loss. Employers must make reasonable accommodations for employees with qualifying hearing impairments as long as it does not create an undue hardship. The federal Americans with Disabilities Act (ADA) and the New Jersey Law Against Discrimination (NJLAD) often differ in the scope of their protections, with state law tending to be more expansive. The definition of “disability” under federal law, in turn, tends to be more restrictive. The Equal Employment Opportunity Commission (EEOC), which enforces the ADA and other federal employment statutes, recently issued guidance on how employers may address employees or job applicants with hearing disabilities.

The NJLAD defines “disability” as a range of conditions that either “prevent[] the typical exercise of any bodily or mental functions” or can be demonstrated through “accepted clinical or laboratory diagnostic techniques.” The ADA’s definition depends more on how a condition affects an individual. In order to qualify as a disability under the ADA, a condition must “substantially limit[] one or more major life activities.”

When an employee with a qualifying disability requests an accommodation, the employer must consider whether providing that accommodation would pose an undue hardship. They must work with the employee to find the best way to help them perform their job duties. Factors that employers may consider during this process include the cost of a requested accommodation and the effect it will have on the workplace, other employees, and the employer’s business.
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April 7, 2023

New Jersey Governor Signs Temporary Worker Bill of Rights

by Resnick Law Group, P.C.

New Jersey’s employment laws protect workers in this state from unlawful discrimination and retaliation, guarantee a minimum wage for many employees, and ensure that they will receive overtime pay for overtime work. In order for an individual to enjoy many of these legal protections, however, an employer-employee relationship must exist. Certain employment arrangements do not meet many legal definitions of “employment,” leaving some workers with no recourse if their employers underpay them or subject them to other forms of unfair treatment. A new law in New Jersey, the Temporary Worker Bill of Rights (TWBOR), will expand legal protections for workers employed by temporary staffing agencies. The law will take effect in two stages later this year.

The bill that became the TWBOR, A1474, made its way through the New Jersey Legislature for over a year before it finally became law in February 2023. The Assembly addressed the need for the law in the section on findings and declarations. More than 127,000 workers in New Jersey are employed by temporary staffing agencies. This includes around one hundred licensed agencies and an unknown number of unlicensed ones.

Temporary workers receive pay from their agencies for work performed for clients. According to AB1474, they earn an average of 41% less than employees who perform similar work as part of a formal employment relationship. Black and Latino workers are overrepresented among temporary workers when compared to overall employment in New Jersey. Temporary workers are generally more vulnerable to a wide range of exploitative or abusive practices, hence the need for the TWBOR.
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March 31, 2023

New Jersey Legislature Expands Scope of Mass Layoff Law

by Resnick Law Group, P.C.

Mass layoffs can create problems for employees, their families, and, in some cases, entire communities that depend on a single employer. Federal and New Jersey employment laws attempt to limit the impact of large-scale worker layoffs by requiring employers to give advance notice to workers who will be included in an upcoming layoff. The federal Worker Adjustment and Retraining Notification (WARN) Act of 1988 requires covered employers to give sixty days’ notice for sufficiently large layoffs. New Jersey enacted its own law, the Millville Dallas Airmotive Plant Job Loss Notification Act or “New Jersey mini-WARN Act,” in 2007. The legislature enacted a bill expanding the mini-WARN Act in 2020, but the COVID-19 pandemic interfered with its implementation. A new bill, signed into law by the governor in January, changes the bill’s effective date to April 10, 2023.

The New Jersey law gets its official name from a 2004 plant closing in Millville that reportedly resulted in the loss of several hundred jobs. It became law in December 2007 and took effect immediately. Prior to the legislature’s 2020 amendments, the statute applied to employers with at least one hundred full-time employees. It defined a “part-time employee” as anyone who worked less than twenty hours per week on average or had worked for the employer for less than six months. The statute applies to layoffs at “establishments,” defined as locations that an employer has operated for more than three years.

The mini-WARN Act applied to mass layoffs, also known as reductions in force (RIFs) that affected either:
– Five hundred or more employees at an establishment; or
– Fifty or more employees at an establishment, provided that they comprise at least one-third of the total number of people employed at that location.
Employers had to give notice at least sixty days in advance of a RIF. The statute required them to pay severance to any employee to whom they did not provide the required notice. The amount was equal to one week of pay for each full year of employment.
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March 24, 2023

Labor Department Issues Guidance for FMLA Eligibility for New Jersey Remote Workers

by Resnick Law Group, P.C.

New Jersey employment laws provide eligible workers with protected leave to deal with medical issues or care for family members. The federal Family and Medical Leave Act (FMLA) provides up to twelve weeks of unpaid leave for certain reasons. In order to qualify for leave under this statute, an employee must work for a covered employer and meet minimum work-hour requirements. An increasing number of workers in New Jersey and around the country are working remotely, which has raised questions about how the FMLA applies. The Wage and Hour Division (WHD) of the U.S. Department of Labor issued guidance in February 2023 addressing this and several other questions. Its position is that the FMLA’s protections apply to remote workers in much the same way that they would be available to on-site employees. It offers some clarifications on how eligibility criteria relating to an employee’s “worksite” apply to remote workers.

Eligibility for FMLA leave is complicated. The statute establishes criteria for the employer, the employee, and the purpose of the requested leave. It applies to employers with at least fifty employees. An employee must meet the following three criteria:
1. They have worked for the employer for at least twelve months. For this criterion, the twelve months do not need to be consecutive.
2. During the twelve-month period immediately before the employee requests leave, they have worked a minimum of 1,250 hours.
3. Their employer employs at least fifty people within seventy-five miles of their worksite.

Reasons for leave under the FMLA may include the following:
– A serious health condition that prevents an employee from performing their job;
– The birth, adoption, or foster placement of a child;
– A serious health condition of a spouse, child, or parent; or
– A “qualifying exigency” related to the active-duty military service of a spouse, child, or parent.
Employers violate the FMLA when they interfere with an eligible employee’s effort to use accrued leave time or discriminate against an employee because they requested or used leave. They must allow employees to return to the same position or a substantially similar position when their leave ends, with the same pay and benefits.
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March 17, 2023

New Labor Department Guidance Could Help New Jersey Remote Workers

by Resnick Law Group, P.C.

The Fair Labor Standards Act (FLSA) establishes a minimum wage for the entire country, requires employers to pay overtime when employees work more than forty hours during a week, and provides other protections for workers’ rights. A significant increase in the number of people working remotely over the past few years has raised questions about what constitutes “work time” away from the workplace. Non-exempt employees are entitled to pay for short break periods under the FLSA and New Jersey employment laws. Court decisions and administrative cases addressing this issue, however, have mostly involved time that non-exempt employees have spent in the workplace. The U.S. Department of Labor’s Wage and Hour Division (WHD) issued a Field Assistance Bulletin (FAB) in February 2023 that discusses break time for remote workers under the FLSA. Its conclusions are favorable towards the employees. While the FAB does not have the force of law, courts may be able to rely on it should this issue reach them.

FLSA regulations generally require employers to pay employees for job duties that they have performed, even if the employer did not specifically request it. For example, an employer must pay an employee who continues to work past the end of their shift in order to finish an assignment. This also applies when the employee performs the work off-site, including at the employee’s home.

An employee’s compensable time is not necessarily limited to the time they are actively engaged in their job duties. As a general rule, employees are entitled under the FLSA to get paid for rest breaks, but not meal breaks. Regulations define a rest break as a break lasting no more than twenty minutes that serves to “promote the efficiency of the employee.” “Bona fide meal periods,” as defined by the regulations, typically last at least thirty minutes. They are not considered compensable work time as long as the employee is relieved of all work responsibilities. The question for the WHD involves how these rules apply to remote workers.
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