Articles Posted in Business Law

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New Jersey employment law has generally upheld non-compete (or non-competition) agreements provided they met certain requirements aimed at allowing employees to earn a living.  Non-compete agreements have been much vilified by pro-employee groups, and much5-225x300 supported by pro-employer groups.  However, the United States Federal Trade Commission has issued a rule which would prohibit non-compete agreements.  At least one lawsuit has been filed aiming to block the new regulation, and others are expected.  So whether the rule will take effect, and if so in what form it will be allowed, is still an open question.  However, employers and employees should be prepared, because unless an injunction is issued the rule will become effective in several months.

The Rule

The Rule, part of the United States Code of Federal Regulations, defines non-compete clauses as:

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The Wage and Hour Division of the United States Department of Labor has issued a new regulation vastly increasing the number of employees who are entitled to overtime.

Background

Both Federal and New Jersey employment law both require that employees must be paid one and a half times their regular hourly rate (“timecourthouse-1223280__340-300x200 and a half”) for work beyond forty hours in any week.  However, there are exceptions.  The major exemptions are for executive, administrative, professional, and highly compensated employees.  In addition to the requirements particular to each exemption, the employees cannot be paid less than the threshold for the exemption.

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Federal and New Jersey employment law both prohibit discrimination because of an employee’s gender.  The United States Supreme Court’s recent decision in the case of Muldrow v. City of Saint Louis establishes what employees must prove to have a viable lawsuit for gender discrimination under Title VII of the Civil Rights Act of 1964.  Because New Jersey courts often look to Federal case law about Title VII to guide them in interpreting New Jersey employment law, it is likely that this standard will be adopted as the law in New Jersey.scoutus-room

Background

Jatonya Clayborn Muldrow was a long serving, decorated officer with the St. Louis Police Department.  Justice Elena Kagan described the factual background of the case.

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A recent New Jersey construction law development will greatly affect contractors.

The New Jersey Legislature passed a new law regulating home improvement and home elevation contractors, which Governor Murphy signed into law on January 8, 2024.  Thebuilding-home-construction-contractor-blueprint-architecture-300x200 regulations governing home improvement contracts and home elevation contractors were already draconian, but the new law is a sea change, greatly expanding the regulatory requirements for New Jersey contractors, including a new requirement that they be licensed.

Applicability: Every Job Over $500

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New Jersey Employment Law Protections for Pregnant Employees

New Jersey employment law, as well as Federal employment law, prohibits discrimination against employees because of pregnancy, requires employees to reasonably accommodate employees’ pregnancy, bars retaliation against employees who request accommodations for pregnancy or object to the treatment of pregnant employees, and bars coercion of pregnant employees from being required to acceptkids-300x225 unreasonable or no accommodations or take leave unless medically necessary.

Under New Jersey employment law, the primary statutory protection for pregnant employees is the New Jersey Law Against Discrimination.  The main provision of the Law Against Discrimination protecting pregnant employees is N.J.S.A. 10:5-12.  This provision makes it illegal “For an employer, because of… pregnancy or breastfeeding… to refuse to hire or employ or to bar or to discharge from employment or to discriminate against an individual in compensation or in the terms, conditions or provisions of employment.”  This has been held to also bar harassing an employee because of protected traits, such as pregnancy.  These provisions also apply to unions and employment agencies.

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New Jersey construction litigation often involves claims against contractors for improper construction or delay.  Contractors, in turn, often argue as a defense, counterclaim or cross-claim that any delay or improper construction was the fault of the licensed professional on6-300x225 the project, such as the engineer or the architect.  Owners may also make these claims against architects and engineers directly.  A trial judge in the Superior Court of New Jersey in Morris County recently addressed what is required to maintain such a claim in the case of Township of Parsippany-Troy Hills vs. Thomas Controls, Inc.

Background: The Lawsuit

The Township of Parsippany-Troy Hills sued Thomas Controls, Inc. over its work on construction improvements to the Township’s wastewater management treatment plan project.  The Township had separately contracted with Keystone Engineering Group to act as engineers on the project.  Thomas filed counterclaims against the Township and filed a third-party complaint against Keystone, suing it for alleged negligence, delay and professional malpractice.  Keystone filed a motion to dismiss Thomas’s third-party complaint, arguing that the New Jersey Affidavit of Merit Statute requires that an affidavit of merit must be filed within 120 days of a defendant filing an answer when the defendant is a licensed professional and the claims are for negligence or professional malpractice.  As a licensed engineer, Keystone argued that this law protected it because Keystone did not file an affidavit of merit within the required time frame.

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An appellate court recently examined the covenant of good faith and fair dealing in New Jersey construction contracts in the case of Konopka vs. Brown’s Heating, Cooling, Plumbing.

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Background

Konopka hired Brown’s as a contractor to install a Carrier gas furnace in his home.  Brown was to supply labor and materials in exchange for the homeowner paying $19,800. The contract provided that change orders had to be in writing.  One-third of the contract price was payable on signing, one-third when work started, and one-third upon completion.  The homeowner paid the first installment.  The job started on August 26, 2015.  The homeowner had not yet paid the second installment, but the contractor wanted to work with him.  However, on September 9, 2023, Brown’s sent an email which terminated the contract.  The Court explained that:

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New Jersey whistleblower retaliation lawsuits turn on the question of evidence.  This is a frequent area of dispute in New Jersey employment law.  A New Jersey appeals court recently examined the evidence necessary to establish a claim of whistleblower retaliation under the New Jersey Conscientious Employee Protection Act, New Jersey’s Whistleblower Law, in the case of Carol Smith vs. Konica Minolta Business7-300x225 Solutions U.S.A., Inc.

Background

Carol Smith worked for Konica Minolta Business Solutions, U.S.A., Inc. (“KMBS”) as a sales representative selling business document management technology and solutions for fourteen years.  She worked out of KMBS’s Iselin office.  She used her own personal laptop throughout her employment.

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One of the most difficult problems in New Jersey construction law for contractors and subcontractors is getting paid.  Fortunately, a powerful remedy exists in the New Jersey Prompt Payment Act.  A recent appellate court decision examined frameup-225x300the New Jersey Prompt Payment Act in the case of Jo-Med Contracting Corp. vs. City of Linden.

Background

The City of Linden contacted Jo-Med to submit a bid for emergency repair work on approximately 20 feet of sewer repair, together with approximately 30 feet of related curb replacement.  Jo-Med submitted a bid for $25,000 based on the job description provided by the City engineer; the bid stated that the cost would be higher if Jo-Med ran into unforeseen problems not apparent in the City’s description, in which case it would bill the City on a time and materials basis.  Jo-Med was awarded the contract.  The City’s engineer told Jo-Med’s owner that he would “work with him for additional charges to finish the work.”

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New Jersey employment law requires that employees must be paid at regular intervals, at least twice per month.  The proposition that employees should be paid for the time that they work does not seem to be illogical.  However, litigation over non-payment of wages is all toous-supreme-court-300x200 common.  The New Jersey Appellate Division recently addressed one of the laws behind this issue in the case of Veronica Villalobos v. Beast Coast Moving Limited Liability Company.

Background

Veronica Vilalobos and Joe Esquijarosa brought suit against their employer, Beast Coast Moving Limited Liability Company, for violation of the New Jersey Wage Payment Law, in the Law Division of the Superior Court of New Jersey, sitting in Bergen County.

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