Last Chance Agreements In New Jersey Employment Law
New Jersey civil service law and education law provide that employee disciplinary charges can be settled. This applies to New Jersey governmental jurisdictions which are not covered by civil service or education law as well. One of the tools which are sometimes used for these settlements are “last chance agreements.”
Last Chance Agreements
A last chance agreement is essentially a settlement agreement which suspends disciplinary proceedings for a specified time frame, essentially a probationary period, which gives the employee a “last chance” to improve her performance. Thus, if the employee violates the last chance agreement during the specified period the employer may impose the suspended discipline or other discipline as appropriate. The agreement is to be construed under the normal rules for contract interpretation. The New Jersey Supreme Court and Appellate Division of the Superior Court of New Jersey have addressed last chance agreements in separate decisions in the case of Horace Watson vs City of East Orange. The Appellate Division also addressed the matter in the case of A.D.P. v. ExxonMobil Research and Engineering Company, in which the court examined last chance agreements and their application in private sector employment.