Articles Posted in Labor and Employment

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A recent New Jersey employment law decision in the case of Matter of Shyner examined the procedures available to New Jersey State Troopers to appeal employer imposed discipline, and the standards which appellate courts will utilize to review disciplinary decisions by the Superintendent of New Jersey State Police.

The Shyner Case.

Dawn Shyner was a lieutenant in the New Jersey State Police.  In 2014 she called 911 because of an altercation with her estranged husband; local police responded.  No charges were filed, nor was a domestic violence restraining order sought.  In accordance with New Jersey State Police protocols, she notified her supervisor and surrendered her weapon.  During that meeting her supervisor told her that he did not believe the incident would result in a domestic violence investigation, although undoubtedly an ordinary internal affairs investigation would ensue.

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The Arafa Case

The New Jersey Supreme Court issued an opinion in the case of Arafa v. Health Express Corporation in a consolidated appeals about a niche question regarding the interplay of the Federal Arbitration Act (the “FAA”) and the New Jersey Arbitration Act (the “NJAA”) regarding the judge-gavel-1461998219JBc-300x200enforceability of agreements in employment contracts to arbitrate disputes under New Jersey employment law.  The consolidated cases were both brought as class actions by employees whose duties included driving to make deliveries for their employers.  In one of the appeals it was clear that the employees were making deliveries outside the state as well as in it, and were therefore engaged in interstate commerce; in the other it was not clear.  In both cases the employers argued that the cases were not covered by the FAA, which contains an exemption which provides that the FAA will not apply to “contracts of employment of seamen, railroad employees, or any other class of workers engaged in foreign or interstate commerce,” which the United States Supreme Court has defined to include interstate deliveries.  Because the drivers were not covered by the FAA due to the exception, the employers argued, they were covered by the NJAA, which did not contain such an exemption, and the arbitration agreements were therefore enforceable.  Thus, the employers argued, the lawsuits in Superior Court should be dismissed and the cases submitted to binding arbitration.  The trial judges in the Law Division of the Superior Court of New Jersey agreed with the employers and dismissed the suits and ordered them to arbitration.  In both cases, the employees separately appealed, and different panels of the Appellate Division of the Superior Court reached different decisions.  To resolve the split, the New Jersey Supreme Court agreed to hear the appeals.

Why does this matter?  If it seems pretty arcane, it has significant real world consequences.  First, the employees sued for unpaid overtime under the New Jersey Wage and Hour Law because New Jersey law and New Jersey courts are seen – rightly or wrongly – as more friendly to employees than federal court, which of course is why the employers didn’t want the case there.  Moreover, arbitration is seen as much more friendly to employers than employees, which is why the two sides were fighting over it.

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Employment Law Evidence Issues

Our employment lawyers represent employees and employers in all aspects of New Jersey employment law.  One of the most litigated issues is the evidence which an employee must present to demonstrate that retaliation or discrimination was behind an adverse action, such as supreme-administrative-court-3565618_960_720-300x200firing or demotion.  The Appellate Division recently issued an important decision on the ability of jurors to infer retaliation from circumstantial evidence.

The Yatauro Case

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Our employment attorneys represent employees in New Jersey Civil Service appeals and disciplinary proceedings.  One frequent matter of contention in the New Jersey Civil Service System is bypassing candidates for selection or promotion under the “Rule of Three.”

The Rule of Three

The New Jersey Civil Service Act requires that hiring and promotion must be based on fitness and merit, determined by competitive Civil Service examinations wherever possible.  After a test, the New Jersey Civil Service Commission will issue a list of eligible candidates ranked in order of their scores.  Hiring and coppromotion must be made according to the eligible candidates’ ranks on the list.  However, an exception exists.  The Rule of Three allows New Jersey Civil Service employers to bypass eligible candidates ranked higher on hiring and promotion lists in favor of lower ranked candidates so long as they select one of the top three eligible candidates remaining on the list.  After each decision to hire or promote, the Rule of Three evaluation begins all over again.  So, for example, if the first candidate is selected, the employer may then select any of the candidates ranked second through fourth for the second spot.

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The Chancery Division of New Jersey’s Superior Court recently issued a public employment law decision in the case of Petrella v. The Hackensack Board of Education which is important for New Jersey teaching staff members because it examined the grounds for overturning an arbitration decision on tenure charges under the TEACHNJ Act.judge-gavel-1461998219JBc-300x200

Under New Jersey employment law, tenure confers many benefits on teaching staff members.   A teacher or other teaching staff member, such as an athletic director, who has tenure may not dismissed or have their pay reduced for any reason other than incapacity, inefficiency, conduct unbecoming, “or other just cause.”  It also gives teaching staff members appeal rights if tenure charges are filed against them, which includes binding arbitration under the TEACHNJ Act.

In the Petrella case, tenure charges were filed against a tenured athletic director for:

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New Jersey employment law provides that government employees may be fired for conviction of a crime, and for many crimes they must be fired.  However, if they are exonerated they may be reinstated to their position.  They may be subject to further discipline, but if they are not they may also receive back pay, police-hoboken-train-stationseniority and benefits for the period of their suspension.

Suspension During Criminal Charges

New Jersey Civil Service Commission regulations provide that an employee’s conviction of a crime is grounds for discipline.  An employee suspended while a criminal complaint or indictment is pending must be served with a Preliminary Notice of Disciplinary Action (known as a “PNDA”). The PNDA should include a statement that forfeiture of the employee’s position may result, and that the employee may choose to consult with an attorney.  In this case representation by an attorney is always advisable.  Within five days of receipt of the PNDA, the employee may request a departmental hearing. If no request is made (within five days or an agreed upon extension) the employer may issue a Final Notice of Disciplinary Action (an “FNDA”).

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The New Jersey Supreme Court recently issued an important employment law decision in the case of  Barila v. Board of Education of Cliffside Park regarding the ability of unions to bargain away employee benefits enjoyed under prior contracts.teacher-300x224

Benefits, such as time off, are terms and conditions of employment which may be bargained for in collective negotiations.  (The term “collective negotiations” is used in the public sector instead of “collective bargaining” because, unlike in the private sector, government employees do not have the right to strike under New Jersey employment law.)  The resulting contract (or “collective negotiation agreement”) sets the terms and conditions of employment, provided the parties have bargained in good faith and the employees receive the minimum levels required by statute.

In this case, under prior contracts between the Cliffside Park Board of Education and the teachers union, including the most recent one in effect from 2012 through 2015, longer term employees could carry over and be paid for their unused sick days up to $25,000.  Not all employees could do so, however, because the New Jersey Legislature had passed a law limiting payment for unused sick time to $15,000 for employees who commenced work on May 21, 2010 or thereafter.  The statutory limit did not apply to employees who started work before May 21, 2010.

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In the tough economic times brought on by COVID-19, many governors and veterans-300x200mayors, including New Jersey’s Governor Murphy, have said that widespread layoffs may be necessary if federal assistance is not forthcoming.  Our attorneys represent New Jersey Civil Service employees, and we see the struggles they are facing.  Given this, we thought the time was right to review the layoff rights available under New Jersey Civil Service law.

 
Layoffs

A layoff is the termination of a permanent employee’s employment because of economic reasons.  Demotions or reduction of hours for economic reasons are also treated as layoffs, triggering the rights and procedures applicable to layoffs.

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In this time of economic uncertainty due to the coronavirus and the social distancing required to slow it, our attorneys and staff are helping New Jersey sba-disasterbusinesses seek financing under the new Federal Small Business Paycheck Protection Program.  The basic elements of the program are below.  Call us to obtain help. Applications are being accepted starting April 3rd, and funding is limited, so time is of the essence.

Small Business Paycheck Protection Program

The new Paycheck Protection Program by the Federal Government will provide small businesses with funds to meet payroll and benefits costs, payroll taxes, vacation and sick leave payments, rent, mortgage interest, and utilities for up to  for up to eight weeks.  If the funds are used solely for these expenses and the number of the business’s employees stays the same, the loan can be fully forgiven (it is expected that seventy five percent of the forgiven amount will go to payroll expenses).  In other words, the loan is converted to a grant and does not need to be repaid.  The requirement can be met by retaining employees or quickly rehiring them by June 30, 2020.  If the number of full-time employees is reduced then the forgiveness will be reduced, and a pro rata portion of the loan will need to be repaid.  Only one loan may be taken.  The non-payroll costs need to have been incurred before February 15, 2020.

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Epidemic, Coronavirus, Lurking, Virus
As a result of the coronavirus (“COVID19”), the state and federal governments have been taking significant steps to enact laws to assist with relief efforts, particularly in relation to the economic strain that many individuals, families, and businesses are facing as a result of widespread closures, business limitations, and stay-at-home orders.

The federal government previously passed the Families First Coronavirus Response Act which provides emergency relief in relation to job protection and paid leave. Now Congress is working on a new stimulus bill which would provide $2 trillion in relief aid through several different avenues.  This bill has not yet been passed and therefore is still subject to change at this point. However, it appears that several core areas are likely to remain and be ultimately signed into law.

This includes: unemployment assistance, rebates to individuals (relief checks), tax credits to businesses which were closed or significantly effected by COVID-19 and continued to pay employees, bailout loans for major companies such as airlines and hotels (this is perhaps the area most disputed in Congress and therefore most subject to change), and funding to hospitals and health care facilities.

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