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New Jersey High Court Clarifies Disgorgement as Remedy for Breach of Duty of Loyalty

The absence of actual economic loss to an employer as a result of an employee’s breach of the duty of loyalty does not preclude the employer from being awarded the equitable remedy of disgorgement, a unanimous New Jersey Supreme Court has ruled. Kaye v. Rosefielde, No. A-93-13 (Sept. 22, 2015).

New Jersey Minimum Wage Will Hold Steady In 2016

New Jersey’s minimum wage will remain at $8.38 per hour for 2016, the state government recently announced.

New Jersey Casino Employee Weight Policy Fairly Applied, Court Approves

A New Jersey casino did not violate the state’s anti-discrimination law by enforcing a weight standard for its costumed beverage servers, called “BorgataBabes,” a three-judge panel of the state appellate court has ruled, upholding summary judgment for the employer as to the policy.

New Jersey Arbitration Agreement Declared Invalid Without Express Waiver of Employee’s “Right to a Trial”

Many employers have turned to mandatory employment arbitration agreements as a way to control the cost, duration, and publicity of employment litigation. New Jersey courts will enforce properly drafted agreements that require employees to arbitrate their employment-related claims, including statutory discrimination and retaliation claims.


When the Supreme Court of New Jersey held in Quinlan v. Curtiss-Wright Corp., 204 N.J. 239 (2010) that an employee’s unauthorized taking of an employer’s confidential documents can constitute protected activity when the documents are used in support of a discrimination claim. it left several vexing questions unanswered. In particular, the Court did not explain how it would reconcile this controversial decision with instances where an employee’s taking of documents constituted a violation of law.

Disagreement Between State Senate and Assembly Stalls Paid Sick Leave Bill

On June 22, 2015, the New Jersey Senate Labor Committee approved S785, a bill that would provide mandatory paid sick leave to all New Jersey employees. The bill is similar to A2354, passed by the Assembly Budget Committee, in that it would require employers to provide either 40 or 72 hours of paid sick leave to employees, depending on the size of the employer. The proposed laws would allow employees to accrue such leave at a rate of 1 hour for every 30 hours worked, and permit employees to use the leave for their own medical illness, preventive doctor appointments, or illness or appointments for family members (among other reasons).

Update on Local Paid Sick Leave Ordinances

In the recently decided matter of New Jersey Business and Industry Association, et al v. City of Trenton (L-467-15, April 16, 2015), the court held that Trenton’s paid sick leave ordinance applies only to employers based in Trenton, and not to employers “whose employees have to come to Trenton for . . . more than 80 hours.” Counsel for the City of Paterson also appeared on the record in that matter and stated that the Paterson ordinance likewise should only apply to businesses located in Paterson.

New Jersey Division on Civil Rights Workplace Posting Update

The New Jersey Division on Civil Rights (DCR) quietly issued another round of updated mandatory posters (with a revision date of 5/8/2015), which are now available on its website.

New Jersey Supreme Court Rejects Heightened Standard For “Watchdog” Whistleblowers

In a decision that is likely to have far-reaching impact on employers, the New Jersey Supreme Court has rejected a heightened standard for “watchdog” employees, i.e. employees whose job duties include ensuring legal compliance, to prove whistleblower liability under the New Jersey Conscientious Employee Protection Act (CEPA). Lippman v. Ethicon, Inc., No. A-65/66-13 (July 15, 2015).

New Jersey Rejects Heightened Bar for Whistleblower Claims by ‘Watchdog’ Employees

In a unanimous decision, the New Jersey Supreme Court has refused to raise the bar for employees whose job entails ensuring legal compliance (“watchdog” employees) to bring whistleblower claims under the New Jersey Conscientious Employee Protection Act (CEPA). Lippman v. Ethicon, Inc., No. A-65/66-13 (July 15, 2015).