New Jersey law

Is it a Bonus or is it a Tip: When Must Payments from Third Parties be Counted When Calculating Overtime Pay?

September 10, 2019 | by Jonathan I. Nirenberg

The Third Circuit recently addressed when a bonus an employee receives from someone other than his or her employer counts toward the employee’s “regular hourly rate” of pay under the Fair Labor Standards Act (“FLSA”).

The FLSA is a federal law that, among other things, requires employers to pay most non-exempt employees time-and-a-half when they work more than 40 hours in a workweek. As a result, the higher the employee’s regular hourly rate, the higher the overtime pay premium the employee is entitled to receive.

The case involves employees of Bristol Excavating Inc., an excavation contractor, who work at sites owned by another company, Talisman Energy Inc. Since the employees work 12 ½ hour shifts every day for two straight weeks, followed by a week off, they routinely work substantial overtime hours.

Appellate Division Narrows But Enforces ADP’s Non-Compete Agreement

August 15, 2019 | by Jonathan I. Nirenberg

On July 26, 2019, New Jersey’s Appellate Division issued a detailed ruling regarding the non-compete and non-solicitation provisions in ADP, LLC’s stock option plan. In the process, the court provided a detailed explanation of how New Jersey courts should analyze restrictive covenants.

The appeal stems from separate cases ADP filed against six of its former sales representatives, Erik Kusins, Ryan Hopper, Anthony M. Karamitas, Nick LeNoble, Michael DeMarco and Daniel Hobaica. They had mixed results at the trial court level. Those cases were consolidated in a single appeal.

ADP has restrictive covenants with most of its sales force. Specifically, most of its sales employees are required to sign agreements that include non-compete and non-solicitation provisions that prohibit them from soliciting any ADP clients who they had contact with at ADP, for 12 months after they stop working for ADP, in the geographical territory in which they worked for ADP.

New Jersey Enacts Powerful New Wage & Hour Law Protections

August 6, 2019 | by Jonathan I. Nirenberg

Today, New Jersey’s Acting Governor Sheila Oliver signed an amendment to New Jersey’s wage and hour laws that makes several extremely important improvements.

The amendment impacts several New Jersey laws, most importantly the Wage & Hour Law (“WHL”) and the Wage Payment Act (“WPA”). The WHL is a statute that requires employers to pay employees who do not fall within an exemption minimum wage ($10 per hour in 2019) and time-and-half when they work more than 40 hours in any particular workweek. The WPA is a law that requires employers to pay employees on time, and typically at least twice per month.

The amendment includes numerous new provisions, all of which go into effect immediately. We have summarized some of the most significant changes below:

Termination Three Weeks After Medical Leave Supports Disability Discrimination Claim

May 1, 2019 | by Jonathan I. Nirenberg

A recent decision by New Jersey’s Appellate Division demonstrates that under the right circumstances an employee can prove disability discrimination from the fact that her employer fired her shortly after she had surgery.

Ada Caballero worked for Cablevision Systems Corporation for 15 years. In 2013, she was divorced. A few months after her divorce was finalized, Ms. Caballero submitted a copy of the divorce judgment to the company’s human resources department. However, Cablevision did not remove her ex-husband from its health insurance plan.

On Ms. Caballero’s 2014 performance evaluation, Cablevision gave her a rating of “strong performance.”

New Jersey Employers Can’t Discriminate for Medical Marijuana Use Outside of Work

April 1, 2019 | by Jonathan I. Nirenberg

A recent decision by New Jersey’s Appellate Division recognizes that an employer can violate the New Jersey Law Against Discrimination (“LAD”) if it discriminates against a disabled employee because he uses medically prescribed marijuana to treat a disability outside of the workplace.

Justin Wild worked as a licensed funeral director for Carriage Funeral Holdings, Inc. (“Carriage”). Mr. Wild has cancer. Pursuant to New Jersey’s Compassionate Use of Medical Marijuana Act, Mr. Wild has been prescribed marijuana to help with the associated pain. The Compassionate Use Act decriminalizes the use of marijuana for certain medical reasons including pain relief for individuals with cancer.

In 2016, while working for Carriage, Mr. Wild was in a car accident and had to be taken to the emergency room. He was prescribed pain medication and released from the hospital the same day. At home, Mr. Wild took the pain medication and used medical marijuana.