Articles Posted in Business Law

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New Jersey business law enforces both oral and written contracts for the delivery of goods and services.  However, in the case of Pantos USA, Inc. v. MindsInSync, Inc., when disputes arise, a New Jersey appeals court once again emphasized that evidence is king.NJ_State_House-300x200

Background

In 2018, Pantos USA, Inc., provided “freight forwarding, logistics and warehousing services” to MindsInSync, Inc., Choice Select Home Textiles, In., Ideas From the Ground Up, Inc., and 101 Home Textile Creations, Inc.  When they did not pay, Pantos sued them in the Law Division of the Superior Court of New Jersey.  The defendants denied that there was a written contract, and claimed that Pantos’s services were unsatisfactory.

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In lawsuits where employees claim their employer wrongfully withheld overtime or minimum wage, if the employer claims that the employees were “exempt” it bears the burden of proving that they actually met the requirements of the exemption under the Federal Fair Labordc-court-appeals-district-columbia-building-abraham-lincoln-statue-74985350 Standards Act.  There was a split among the Federal Circuit Courts of Appeals regarding what that burden of proof was.  The United States Supreme Court has now resolved that conflict in the case of E.M.D. Sales Inc. v. Carrera.

Wage and Hour Protections for New Jersey Employees

New Jersey employment law provides that employers must pay minimum wage and overtime to most employees unless they are exempt.  The Federal Fair Labor Standards Act provides similar protections.  The main exemptions under both Federal and New Jersey employment law are similar.  Administrative, executive, professional and “outside sales” employees are exempt from minimum wage and overtime provided they make a minimum salary.

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New Jersey employment law offers strong protections to employees.  Among these are the New Jersey Wage Payment Law and the New Jersey Wage and Hour Law, both of which were amended in 2019 to increase the statute of limitations from two years to six, and increase3-225x300 penalties for violations.  In August 2024, the New Jersey Legislature further strengthened these laws to prevent employers from taking advantage of complaining employees because of their immigration status.

New Jersey Wage Protections

New Jersey’s Wage and Hour Law and Wage Payment Law provides the basic protections regarding the payment of wages to New Jersey employees.  (The Federal Fair Labor Standards Act provides similar penalties at the Federal level, but with a shorter limitation period and lesser penalties.)  Failure to pay overtime or minimum wage, or failure to pay wages to employees when due, allows the employee to recover her unpaid wages for the last six years plus liquidated damages, making the entire recover 300 percent of the wrongfully unpaid wages.  Additionally, the employer will be required to pay the employee’s attorneys fees.  (An employer will have a good faith defense available for liquidated damages for a first violation, but not for the unpaid wages themselves or the employee’s attorneys fees.)

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At McLaughlin & Nardi, LLC, our New Jersey construction lawyers represent contractors, subcontractors, suppliers, project managers, owners, architects and engineers in all areas of construction law. Here are some frequently asked questions about New Jersey constructionus-1978465__340-300x200 law.

  • What is construction law?

    Construction law refers to the laws, regulations and case law that guide the construction industry. It encompasses a wide range of issues including contract law, construction liens, construction defects, breach of construction contracts, litigation, arbitration, mediation, appeals, bonds and bonding, collection, guarantees and sureties, construction claims, and related consultancy contracts.

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New Jersey employment law provides significant protections for employees who are pregnant, breastfeeding, or have recently given birth.

The New Jersey Law Against Discrimination provides protection against discrimination against pregnant and breastfeeding employees.  It also requires that employers make reasonablekids-300x225 accommodations available so that pregnant or breastfeeding employees and new mothers can perform their jobs.  It prohibits retaliation against employees who request such accommodations.  The New Jersey Law Against Discrimination gives a non-exhaustive list of such reasonable accommodations: “bathroom breaks, breaks for increased water intake, periodic rest, assistance with manual labor, job restructuring or modified work schedules, and temporary transfers to less strenuous or hazardous work.”

The New Jersey Law Against Discrimination generally gives more extensive protection to employees than Federal law, including pregnant and breastfeeding employees, and New Jersey State courts generally provide greater procedural protections for employees than Federal court.  Nonetheless, Federal law also provides protections for pregnant employees.

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The New Jersey Consumer Fraud Act and home improvement practices regulations presented a dilemma – they provide valuable tools protecting homeowners from unscrupulous home improvement contractors by awarding them triple damages and attorneys fees when successful, but risk imposing drastic penalties on legitimate contractors who miss some of their more technical requirements.  However, as the Appellate Division recently explained in the case of Philip Dattolo v. EMC Squared LLC and Edward T. Morgan, the requirement that a homeowner must provehouse-225x300 ascertainable damages which result from the consumer fraud violations goes a long way toward resolving this conflict.

Background

The facts of the case are these.  Dattolo contracted with EMC Squared LLC to construct a single-family home in Boonton, New Jersey in October 2018.  EMC was solely owned by Edward Morgan.  In March 2019, EMC offered a list of extras, and Dattolo accepted some.  EMC created a written change order but it was never signed.  In January 2020, Mogan told Dattolo that EMC was unable to continue.  He told Dattolo that the project received final inspections.  He gave Dattolo a final bill with credit for the unfinished work.  Dattolo refused to pay, asserting many construction defects existed which would cause him considerable expense to correct.

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New Jersey wages are governed by a set of laws: the New Jersey Wage and Hour Law, the Wage Collection Law, the Wage Theft Act, and the Wage Payment Law.  These New Jersey employment laws govern the amount and timing of wages owed to New Jersey employees.  A New Jersey appeals court issued a precedential decision on when commissions must be paid under the Wagecourthouse-NY-300x199 Payment Law, which governs when wages must be paid, in the case of Musker v. Suuchi, Inc.

Background

Rosalyn Musker was employed as a senior platform delivery manager by Suuchi, Inc.  Part of her compensation was commissions on the gross revenue from sales of software, software related services, and related subscriptions for apparel manufacturers.  These sales were governed by a company commission plan.  The commission plan contemplated continuing revenue streams.  Only revenue from these sources, and no others, was governed by the commission plan.

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The Federal appeals court which hears New Jersey cases issued a precedential decision explaining the definition of “disability” for purposes of disability discrimination under the Americans with Disabilities Act. tess-225x300

Background

Andrew Morgan was employed by Allison Crane & Rigging LLC as a millwright laborer.  On September 29, 2020 he injured his lower back on the job.  He advised his supervisors, but continued his shift even though he was in “severe pain.”  He then saw a chiropractor who diagnosed Morgan with a bulging or herniated disc in his lower back.  He began treatment twice a week, and had pain when he sat, walked or turned.  The chiropractor placed him on light duty, which he advised his supervisors of in a meeting on October 7, 2020; they advised him not to file a workers compensation claim.  The light duty was to continue until November 25th, at which point the chiropractor advised that he could resume his full duties.

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New Jersey construction contractors and suppliers often have difficulty collecting money due them for their work or supplies.  One of the tools available to help ensure payment is including a personal guarantee in their construction contracts.  However, personal guarantees have certain requirements.  The Appellate Division of the Superior Court of New Jersey addressed this issue inhouse-225x300 the case of Extech Building Services, Inc. vs. E&N Construction, Inc., Shawn Roney and Joaquim Ferreira, et al.

Background

Extech Building Services, Inc., was the supplier of building materials on a construction project for the general contractor, E&N Construction, Inc.  There was a written six paragraph agreement in which Extech extended credit for the project to E&N.  The last paragraph of the agreement also had a provision for personal guarantees; however, the identity of the guarantors was not provided.  There were three signature lines.  Two had the names of Shawn Roney and Joaquim Ferreira, who were executives at E&N, which were signed; a third line was blank and unsigned.

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The United States Court of Appeals for the Third Circuit, which hears appeals from federal district courts in New Jersey, Delaware, Pennsylvania and the United States Virgin Islands, recently rejected a challenge to the New Jersey Temporary Workers’ Bill of Rights in the case of New Jersey Staffing Alliance vs. Cari Fais, Acting Director of the New Jersey State Division of Consumersupreme-court-building-1209701__340-300x200 Affairs in the Department of Law and Public Safety.

Background: The New Jersey Temporary Workers Bill of Rights

The New Jersey Temporary Workers’ Bill of Rights was passed by the New Jersey Legislature in 2023.  It was designed to protect temporary workers employed in New Jersey.  It enacted several measures to meet this goal.  These include disclosure requirements and certification procedures.  It also imposes joint and several liability on both staffing firms and the businesses which obtain temporary workers through those staffing firms.

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