New Jersey: Supreme Court Clarifies 2019 Wage and Hour Law Amendments
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APPLIES TO All Employers with Employees in NJ |
EFFECTIVE May 15, 2024 |
QUESTIONS? Contact HR On-Call |
Quick Look
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Discussion
In Maia v. IEW Construction Group, the New Jersey Supreme Court ruled amendments to the New Jersey Wage and Hour Law (WHL) and Wage Payment Law (WPL) could not be applied retroactively. Here, the plaintiffs performed work as laborers for the defendant construction company. Their jobs required pre-shift and post-shift duties like dropping off and picking up equipment at different worksites. During the time the plaintiffs were employed, they were not paid for this pre- and post-shift work. Both plaintiffs were laid off at the same time and filed claims alleging violations of the WHL and WPL.
On August 6, 2019, the WHL and WPL were amended to allow recovery of liquidated damages up to 200% of the amount at issue under WHL and WPL claims. The amendments also added retaliation claims to the WPL and WHL, recovery of attorneys’ fees under the WPL, and extended the statute of limitations under the WHL from two to six years. In this case, both of the plaintiffs’ claims contained damages that accrued prior to the effective date of the amendments, which the trial court dismissed, and the Supreme Court upheld.
In determining that the 2019 amendments could not be applied retroactively, the court applied a two-prong test established by New Jersey case law. First, the legislature’s intent for retroactive application is determined by considering: 1) when the legislature explicitly or implicitly states an intent for the law to be retroactive; 2) when the amendment is ameliorative or curative; and 3) when the parties’ expectations warrant retroactive application. Second, the court must determine whether retroactive application of the statute will result in either an unconstitutional interference with vested rights or a manifest injustice.
After reviewing the legislative text of the 2019 amendments, the court did not find anything to support the first prong of the test. Therefore, there was no need to turn to the second prong. The expanded liquidated damages, statute of limitations period, retaliation protections, and recovery of attorneys’ fees are only available for conduct that occurred after August 6, 2019.
Action Items
- Review timekeeping and payroll procedures for pre- and post-shift work.
- Consult with legal counsel on wage and hour claims.
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