New Jersey Employment Lawyer Blog

The United States Equal Employment Opportunity Commission (EEOC) recently sued the Port Authority of NY & NJ, claiming the Port Authority violated the Equal Pay Act ("EPA") by paying non-supervisory female lawyers less than their male counterparts. The EPA is a federal law that prohibits employers from considering gender as a basis for paying employees different wages for the same work. The lawsuit also alleges that the Port Authority violated the Age Discrimination in Employment Act ("ADEA") by firing older attorneys and replacing them with younger attorneys. The ADEA is a federal law that prohibits age discrimination in employment.

According to the EEOC's press release, the Port Authority paid male attorneys more than female attorneys for work requiring the same skill, effort and responsibility. The EEOC claims the gender pay disparity occurred regardless of the attorney's job assignment, years of service, or date of admission to the bar.

The allegations stem from the Port Authority's decision to fire two female attorneys over the age of 40 as part of a purported "reduction in force." Earlier this year, the EEOC attempted to reach an amicable settlement with the Port Authority, but those efforts failed. It then filed the lawsuit in the United States District Court for the Southern District of New York.

As Louis Graziano, the attorney handling the case for the EEOC, stated:

Achieving a work force that embodies equal pay for equal work and eliminates sex-based pay discrimination has been the objective of federal law for nearly 50 years. This lawsuit makes it clear that the unfortunate reality - that at some workplaces women still earn less than men, even though they are performing the same work and have the same qualifications - continues to plague the workplace and will not be tolerated.

Continue reading "EEOC Sues Port Authority of NY & NJ for Sex and Age Discrimination" »

On November 10, 2010, New Jersey's Appellate Division ruled that a civil service employee can bring a lawsuit alleging that discipline against him was retaliatory even if he did not appeal a Civil Service Commission decision upholding the discipline. In Racanelli v. County of Passaic, James Racanelli sued the County of Passaic, the Passaic County Sheriff's Department, Passaic County's Sheriff, and various other employees. He alleges they harassed him and otherwise retaliated against him in violation of New Jersey's Conscientious Employee Protection Act ("CEPA") because he reported numerous unlawful and inappropriate actions within the Sheriff's Department. For example, he claims they transferred him to work at the county jail even though he was not trained to work there, and fired him in retaliation for his objections.

Mr. Racanelli appealed the County's decision to fire him to the Civil Service Commission ("CSC"). The CSC handles administrative appeals of major discipline brought against permanent civil service employees. In this case, the CSC upheld Passaic County's decision to fire Mr. Racanelli. Mr. Racanelli chose not to appeal that decision to the Appellate Division. Instead, he brought a separate retaliation lawsuit under CEPA. However, the trial court ruled that because Mr. Racanelli did not appeal the CSC's decision upholding the discipline to the Appellate Division, he could not pursue a whistleblower case.

The trial court also found Mr. Racanelli's claims were barred because he did not file a notice of claim under New Jersey's Tort Claims Act. The Tort Claims Act requires that an individual with a personal injury claim against the state, a county, or a municipality must submit a formal notice of claim to the public entity. Failure to file a notice of claim within six months after the injury is generally a bar to bringing a lawsuit against a public entity.

On appeal, New Jersey's Appellate Division disagreed with both of the lower court's rulings. It held that an employee can sue under CEPA even if he did not appeal a Civil Service Commission decision upholding the discipline against him because an employee has "the discretion to pursue his retaliation claim in a judicial forum rather than in the administrative process." This is similar to the decision in Winters v. North Hudson Regional Fire & Rescue, which ruled that a municipal employee can prove retaliation even if the Civil Service Commission upheld the discipline against him. But unlike Winters, the decision in Racanelli is published, meaning it is a binding legal precedent.

The Appellate Division also ruled that the notice of claim requirement of the Tort Claims Act does not apply to CEPA cases. New Jersey Courts have long recognized that, since the Tort Claims Act does not apply to intentional claims, it does not apply to cases under the New Jersey Law Against Discrimination, the anti-retaliation provisions of the Workers' Compensation Act, and other civil rights claims. The Appellate Division applied the same reasoning to conclude that the notice of claim requirement does not apply to CEPA case.

Continue reading "Civil Service Employee's Failure to Appeal Discipline Does Not Bar Retaliation Case" »

The False Claims Act is a federal whistleblower law. It allows individuals who have information about a company defrauding the federal government to bring lawsuits on behalf of the federal government. Someone who brings a case under the False Claims Act can receive between 15% and 25% of any money the government recovers.

On October 26, 2010, the United States Department of Justice announced that GlaxoSmithKline settled a case under the False Claims Act, and pleaded guilty to criminal allegations that it manufactured and distributed adulterated drugs. As part of the settlement, Glaxo is paying a $150 million criminal fine and a $600 million civil penalty to the government. Cheryl Eckard, the Glaxo employee who brought the False Claims Act case, will receive 16% of the $600 million civil penalty, meaning she is entitled to $96 million.

According to the Department of Justice's press release, the case against Glaxo is part of the federal government's efforts to combat health care fraud. The Justice Department further indicates that the United States has recovered "approximately $4.2 billion since January 2009 in cases involving fraud against federal health care programs," and its "total recoveries in False Claims Act cases since January 2009 have topped $5.4 billion."

Although the False Claims Act is a federal law, New York, New Jersey, and New York City each have their own False Claims Acts. As a result, employees in New York and New Jersey who are aware of fraud against the government potentially could recover a portion of the money out of which the government has been cheated.

Additional information about the False Claims Act is available on our website.

New Jersey is considering passing a new law to make it illegal for companies to state in job advertisements that they will not hire job candidates who are currently unemployed. This proposed new law is likely inspired by a recent article in the Huffington Post, which indicates that many companies are refusing to hire job candidates who are unemployed. According to the article, companies are actually stating in job advertisements that they will only hire candidates who currently have jobs, or that unemployed individuals do not need to apply.

Presumably recognizing this is bad for the economy because it makes it even more difficult for unemployed individuals to find jobs (and stop collecting unemployment insurance benefits), New Jersey is considering an amendment to its labor law that would make it illegal for any job advertisements to state or suggest that (1) being currently employed is a job qualification, (2) the company will not consider job applicants who are currently unemployed, or (3) the employer will only consider job applications who are currently employed.

The proposed law would subject employers who violate to a penalty of up to $5,000 for a first violation, and $10,000 for each subsequent violation. However, it would not make it illegal for employers to consider the fact that a job candidate is unemployed as a factor in hiring decisions. It also would not make it illegal for an employer to refuse to hire unemployed job candidates.

At this point, the bill is not yet a law. It was approved by the Assembly on October 25, 2010, but still needs to be approved by the State Senate, and then signed into law by Governor Christie. In the meantime, New Jersey law already prohibits employment discrimination based on numerous other categories, including race, gender, age, religion, and disability.

Continue reading "New Jersey Considers Prohibiting Companies From Saying Unemployed Job Candidates Need Not Apply" »