Business Law

Published on: March 28, 2025

New Jersey Supreme Court Decides that Commissions are Commissions, and Therefore Wages

Several New Jersey employment laws govern the payment of wages. The New Jersey Wage and Hour Law (along with the Federal Fair Labor Standards Act) governs minimum wage and overtime. The New Jersey Wage and Hour Law governs what are considered wages and when dc-court-appeals-district-columbia-building-abraham-lincoln-statue-74985350 they must be paid. The Supreme Court of New Jersey considered whether and under what circumstances “commissions” are considered “wages” protected by the Wage Payment Law.

Background – PPE Sales at Suuchi, Inc., During the Pandemic

Suuchi, Inc. sells a software-driven platform. Its salespeople are paid commissions of 1.75 percent for the first $729,167 of sales based on annual recurring revenue, and 4 percent beyond that. Suuchi’s plan stated that it was “intended to cover all sales situations.” During the Covid Pandemic, Suuchi branched out into selling personal protective equipment (PPE). The company sent an email advising its sales people that commissions would be based on net revenue, and commissions would be 4 percent when net revenue generated on PPE. However, the chief executive officer sent a follow-up email clarifying that “we are providing the same commissions on these one time orders and not penalizing for not being [annual recurring revenue].”

Published on: March 23, 2025

New Jersey Business Law Decision Examines Tortious Interference

by Maurice W. McLaughlin

New Jersey business law protects economic relationships, whether or not there is a contract in place. However, a party suing for tortious interference must have competent evidence to prove every element of the claim. A New Jersey appeals court recently issued an opinion exploring what is necessary to establish tortious interference, and providing a cautionary tale to anyone courthouse-303370__340-300x192 thinking about filing a lawsuit for tortious interference without competent evidence.

Background: A Meeting of the Eyes Goes South

In 2002, Dr. Corey Notis was a young ophthalmologist who opened a surgical practice in Union, New Jersey. Allegedly he entered into an informal agreement with Alan Greenberg and Innovation Optics, Inc., in which they would refer him patients in need of ophthalmologic surgery. Greenberg was a licensed optician who owned an optical store. Greenberg thereafter introduced Notis to two other ophthalmologists who then also referred their patients who needed ophthalmologic surgery to Notis.

Published on: February 8, 2025

New Jersey Appeals Court Gives 337,214 Reasons Not to Delay in Disputing Commercial Invoices

by Maurice W. McLaughlin

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.

Published on: January 19, 2025

U.S. Supreme Court Clarifies Employer’s Burden for Proving that Employee is Exempt From Overtime

by Maurice W. McLaughlin

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 Labor dc-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.

Published on: January 12, 2025

New Jersey Employment Law Strengthened to Prevent Employers Using Immigration Status to Evade Paying Wages

by Maurice W. McLaughlin

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 increase 3-225x300 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.)

Published on: December 14, 2024

New Jersey Construction Law Frequently Asked Questions

by McLaughlin & Nardi, LLC

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 construction us-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.

Published on: December 9, 2024

New Jersey Pregnant Employee Protections Enhanced by Federal Pregnant Workers Fairness Act and the EEOC’s Implementing Regulations

by Maurice W. McLaughlin

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 reasonable kids-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.

Published on: November 26, 2024

New Jersey Construction Law Decision Explains How Consumer Fraud Act Balances Protections for Homeowners and Legitimate Contractors

by Maurice W. McLaughlin

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 prove house-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.

Published on: September 13, 2024

New Jersey Employment Law Decision Addresses When Commissions Are Part of “Wages” for New Jersey Wage Payment Law

by Maurice W. McLaughlin

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 Wage courthouse-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.

Published on: September 11, 2024

“Disability” Defined for Disability Discrimination by Federal Appeals Court Decision

by Maurice W. McLaughlin

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 25^th, at which point the chiropractor advised that he could resume his full duties.