The New Jersey Employment Law Firm Blog

August 30, 2024

Third Circuit Affirms Dismissal of Plaintiff’s Racial Discrimination Case

In a recent ruling, the Third Circuit upheld a summary judgment in favor of Bryn Mawr Trust Company (BMT) in a lawsuit filed by former employee, Russo. Russo, who is Black, alleged that her supervisor, Therese Trainer, subjected her to racial discrimination, retaliation, and a hostile work environment. Ultimately, the court rejected Russo’s claims against her former employer; however, the case provides important insight to similarly situated employees who are looking to learn more about their options.

The Court Rejects Each of the Plaintiff’s Claims

The court reviewed Russo’s claims under the McDonnell Douglas burden-shifting framework. While Russo established a prima facie case of discrimination by highlighting several instances of inappropriate comments and perceived hostile actions by Trainer, the court found that BMT provided legitimate, non-discriminatory reasons for its actions. Specifically, the court noted that the security investigation into Russo’s handling of a vault key, which led to her suspension with pay, was justified given the seriousness of the breach. Additionally, the court determined that Russo’s claim of constructive discharge—stemming from BMT’s decision to give a hostile customer 30 days to close her account—did not hold up under legal scrutiny. The court concluded that BMT’s response was consistent with its standard procedures and did not create an environment so intolerable that a reasonable person would feel compelled to resign.

The court also dismissed Russo’s retaliation claims, emphasizing that the security investigation was initiated before Russo filed her EEOC and PHRC complaints, making it unlikely to be retaliatory. The court further found that BMT’s handling of the hostile customer incident was prompt and appropriate, undermining Russo’s claims of retaliation.

August 25, 2024

Court Blocks FTC’s Non-Compete Ban: What It Means for New Jersey Employees

by Resnick Law Group, P.C.

In a recent case, the U.S. District Court issued a preliminary injunction against the Federal Trade Commission’s (FTC) “Non-Compete Rule,” which was set to take effect on September 4, 2024. The Non-Compete Rule aimed to make most non-compete agreements unenforceable, significantly altering the employment landscape across the U.S., including in New Jersey. Thus, if left to stand, the recent opinion out of Texas could have far-reaching implications for New Jersey employees.

The FTC’s Non-Compete Rule and Its Implications

The FTC introduced the Non-Compete Rule intending to protect employees from restrictive agreements that limit their ability to work for competitors or start their businesses after leaving a job. Historically, non-compete agreements have been widely criticized for stifling competition and limiting workers’ job mobility. If enforced, the FTC rule would have provided greater freedom for employees in New Jersey to seek better job opportunities without fear of legal repercussions from former employers.

However, the court’s recent decision temporarily blocks the FTC’s Non-Compete Rule, questioning the FTC’s authority under the Federal Trade Commission Act to implement such a sweeping regulation. In this case, the court found that the FTC might lack the substantive rulemaking power to enforce the Non-Compete Rule, raising concerns about the agency’s ability to regulate unfair methods of competition in this manner.

August 23, 2024

New Jersey Court Rejects Employee’s FMLA Claim

by Resnick Law Group, P.C.

If you believe you’ve been unfairly treated at work, particularly if you’ve been denied leave under the Family and Medical Leave Act (FMLA) or retaliated against for requesting it, the Resnick Law Group is here to help. Understanding your rights under the FMLA is crucial, and if those rights are violated, you may have grounds for legal action.

In a recent case, an employee claimed her employer violated the FMLA in two ways: first, by denying her request for FMLA leave, and second, by retaliating against her for attempting to take that leave. She alleged that her employer intensified a hostile work environment, increased harassment, and reassigned her to roles for which she was unqualified. Unfortunately, the court found her claims too vague and inconsistent to proceed.

The FMLA is designed to help employees balance work with personal or family needs, allowing them to take reasonable leave for serious medical conditions without fear of losing their jobs. The law sets clear expectations for employers, ensuring that eligible employees can take up to 12 weeks of leave within a year. After this leave, the employee must be reinstated to their original job or a comparable one with the same pay, benefits, and working conditions.

However, the FMLA doesn’t just grant leave—it also protects employees from retaliation for using it. This means your employer can’t treat you negatively, such as by demoting you or increasing your workload unfairly, just because you took or requested FMLA leave.

August 16, 2024

Federal Court Weighs in on Employee’s Discrimination Case Based on COVID-19 Vaccination Requirements

by Resnick Law Group, P.C.

Employers have an affirmative duty to respect workers’ rights. However, due to various pressures and biases, employers often fail to live up to their duty. If you feel that your rights as an employee have been violated, particularly if you’ve faced discrimination or unfair treatment related to COVID-19 policies, the recent case of Srilatha Kuntumalla vs. Bristol Myers Squibb Company (“BMS”) may provide you with the guidance you’re looking for.

The Facts of the Case

In this case, Srilatha Kuntumalla, along with several other employees, filed a lawsuit against BMS after being terminated for refusing to comply with the company’s COVID-19 vaccination mandate. Kuntumalla and her co-plaintiffs argued that BMS did not follow its own exemption policies and that their terminations were a result of the company’s failure to accommodate their religious beliefs and medical concerns regarding the vaccine.

August 8, 2024

Third Circuit Holds Job Applicant’s Discrimination Case Was Improperly Dismissed

by Resnick Law Group, P.C.

Most New Jersey workers know that state and federal employment laws protect them from illegal discrimination. However, what fewer people know is that these very same laws also provide protection to job applications; that is, individuals who applied for an open position but were not selected for employment.

Recently, the United States Court of Appeals, Third Circuit, issued an opinion in an age and disability discrimination case that highlights this longstanding principle. In the case, Porter v. Merakey, the court reversed the lower court’s dismissal of Porter’s claims, finding that the lower court applied incorrect legal principles.

The Facts of the Case

Porter had previously suffered an injury to his leg, which caused him to walk with a limp and required that he stretch his leg out straight while sitting. Eight years after his injury, at the age of 66, Porter applied for an open position at Merakey, a provider of behavioral health services. He met the minimum requirements for the job and was invited to interview for the position.

July 26, 2024

Federal Court Dismisses Attempt to Stop New EEOC Rule

by Resnick Law Group, P.C.

A new rule from the Equal Employment Opportunity Commission (EEOC) seeks to implement the Pregnant Workers Fairness Act (PWFA), but it has faced opposition. The PWFA fills an important gap in federal pregnancy discrimination law. New Jersey employment law has long required employers to provide reasonable accommodations for workers who are pregnant, have recently given birth, or are dealing with medical conditions related to either pregnancy or childbirth. Federal law did not have this requirement, except for a possible interpretation of the Americans with Disabilities Act (ADA). The PWFA expressly requires reasonable accommodations in these circumstances. Several state attorneys general filed suit against the EEOC to blog the new PWFA rule based on the EEOC’s inclusion of abortion and related services. A federal court dismissed the lawsuit in June 2024, finding that the plaintiffs lacked standing to sue. That lawsuit, however, is not the only challenge to the rule.

The PWFA took effect on June 27, 2023. The EEOC published its rule implementing the PWFA in the Federal Register on April 19, 2024. The rule broadly interprets the PWFA’s requirement that employers provide reasonable accommodations based on “pregnancy, childbirth, and related medical conditions.” It is similar to the ADA’s reasonable accommodations process, with some important differences. The rule places a fairly heavy burden on employers to accommodate workers’ needs.

Seventeen state attorneys general filed suit against the EEOC on April 25. They sought an injunction preventing the PWFA rule from taking effect. Much of their objections stemmed from the inclusion of abortion in the rule’s definition of “pregnancy, childbirth, or related medical conditions.” The rule would require employers to make reasonable accommodations for employees who have the procedure or are dealing with complications related to the procedure.
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July 19, 2024

U.S. Supreme Court Ruling Restricts NLRB’s Authority in Labor Disputes

by Resnick Law Group, P.C.

The National Labor Relations Act (NLRA) is an important tool for protecting workers from employers’ interference with efforts to organize and bargain collectively. Workers and unions may file complaints with the National Labor Relations Board (NLRB), which has the authority to investigate alleged unlawful acts. If the NLRB believes an employer has acted unlawfully, it can take legal action. This includes seeking injunctions to prevent further NLRA violations while the claim for unfair labor practices proceeds. This can include reinstating employees after termination. The U.S. Supreme Court recently ruled on a dispute regarding what the NLRB needs to prove in court to obtain a preliminary injunction. The court’s ruling in Starbucks Corp. v. McKinney sets limits on the NLRB’s authority in this regard. It could affect New Jersey employment law claims dealing with labor rights.

Section 10(j) of the NLRA gives the NLRB the authority to petition a court for injunctive relief when it believes someone has engaged in unfair labor practices. Courts are generally hesitant to grant injunctions, which restrain a person from certain activities on penalty of contempt. This is particularly true when the request for an injunction comes at the beginning of a legal proceeding before each side of the dispute has had an opportunity to present their cases.

The U.S. Supreme Court outlined a four-part test for preliminary injunctions in 2008 in Winter v. Natural Resources Defense Council. It states that a party seeking a preliminary injunction must show the following:
1. They are likely to succeed based on the merits of their claims.
2. They are likely to suffer “irreparable harm” without an injunction.
3. The “balance of equities” is more favorable to them.
4. An injunction would be in the public interest.
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July 12, 2024

New Federal Overtime Rule Takes Effect in July 2024

by Resnick Law Group, P.C.

Overtime laws guarantee that workers receive additional pay for working more than forty hours in a week. Both federal and New Jersey employment laws contain provisions dealing with overtime compensation. The federal Fair Labor Standards Act (FLSA) includes an exemption from the overtime rules for people who work in “a bona fide executive, administrative, or professional capacity.” Also known as the EAP exemption, it covers a wide range of people in management and other specialized roles. The U.S. Department of Labor (DOL) recently published a new rule that revises the EAP exemption. It took effect on July 1, 2024, and expands eligibility for overtime pay to include many people who had previously been exempt.

Section 7 of the FLSA states that employees are entitled to time-and-a-half for hours worked above forty per week. Section 13 covers exemptions from this and other requirements, with the EAP exemption first on the list. The statute does not provide definitions of the terms “executive,” “administrative,” or “professional.” The DOL took on that task in its regulations. It discusses the EAP exemption in 29 C.F.R. Part 541.

The EAP exemption has three main requirements:
– The employee is paid on a salary or fee basis, not hourly.
– Their salary is equal to or greater than a threshold amount set by the regulations.
– Their job duties meet Part 541’s definitions of “executive,” administrative,” or “professional.”
The threshold amount for all three roles, prior to July 1, 2024, was $684 per week. This amount, which is equal to $35,568 per year, has remained the same for many years. The new rule finally updates it.
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July 5, 2024

Third Circuit Reinstates New Jersey Employee’s Civil Rights Claim

by Resnick Law Group, P.C.

While federal and New Jersey employment laws offer protections for most employees against a variety of adverse employment actions, public employees have an additional layer of protection from the U.S. and state constitutions. Certain employment actions could violate employees’ constitutional rights, and those employees may be entitled to damages. Section 1983 and the New Jersey Civil Rights Act (NJCRA) allow people to file lawsuits for deprivation of constitutional rights under certain circumstances. This may include rights that other statutes also protect. The Third Circuit Court of Appeals recently ruled in favor of a public employee in a claim alleging retaliation based on his union activities. While the National Labor Relations Act addresses this kind of retaliation, the suit asserts claims under § 1983 and the NJCRA. The Third Circuit reinstated claims that the plaintiff had brought against the county and a former county official.

Both § 1983 and the NJCRA allow individuals to file suit in connection with actions that allegedly deprive them of constitutional rights. The NJCRA also includes alleged interference with the “exercise or enjoyment” of such rights through “threats, intimidation or coercion.” The two statutes only allow lawsuits for actions taken “under color of law.” This generally refers to actions taken in an official capacity or based on the legal authority of one’s public position.

The Third Circuit case examined the lawsuit under several precedent cases that may relate to civil rights claims against employers. In a 2006 ruling, the Third Circuit established a three-prong test for certain constitutional claims based on retaliation. A plaintiff must prove the following:
1. They engaged in constitutionally protected conduct.
2. They faced “retaliatory action” that would “deter a person of ordinary firmness from exercising [their] constitutional rights.”
3. The retaliatory action resulted from the constitutionally protected conduct.
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June 28, 2024

EEOC Settles Lawsuits Against New Jersey Employers Over Title VII Data Collection

by Resnick Law Group, P.C.

Federal and New Jersey employment laws protect workers from discrimination on the basis of factors like race, sex, and religion. State law includes more protected categories than federal law, but both statutes give rather broad authority to government agencies to investigate alleged unlawful practices by employers. At the federal level, Title VII of the Civil Rights Act of 1964 authorizes the Equal Employment Opportunity Commission (EEOC) to pursue enforcement actions directly or give employees approval to file civil lawsuits. The statute directs certain employers to file reports with the EEOC containing demographic data about their employees. The agency recently filed lawsuits against at least fifteen employers, including two in New Jersey, for failing to file these reports on time. It settled both New Jersey lawsuits within a few weeks of filing.

Section 709(c) of Title VII and EEOC regulations require employers with one hundred or more employees to file annual reports regarding the gender and race/ethnicity of their workforces. The EEOC states that it uses the data in these reports to assist in enforcement and research activities.

The EEOC does not require employers to keep records in any specific form. It does, however, require covered employers to use a form known as the EEO-1 Component 1 data report to submit demographic information. EEOC regulations note that employers’ recordkeeping practices should comply with other state and federal laws regarding discrimination and employee privacy.
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