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Seyfarth Synopsis: The New Jersey Supreme Court recently clarified the standard an employer must meet to successfully assert a good faith defense to wage and hour claims.
Background
The Supreme Court of the State of New Jersey recently issued an opinion interpreting important aspects of the New Jersey Wage and Hour Law (WHL). This decision is especially important given the State’s landmark 2019
anti-wage theft law, which drastically increased the available remedies and statute of limitations for wage and hour claims.
In
Elmer Branch v. Cream-O-Land Dairy, No. A-29-19 (Jan. 13, 2021), the employer asserted a good faith defense to various wage and hour claims asserted against it based on several favorable administrative decisions it previously received from the New Jersey Department of Labor and Workforce Development (“NJDLWD”) in connection with several audits.
01/15/21
Jon L. Gelman
Plaintiff Elmer Branch brought a putative class action against his employer, defendant Cream-O-Land Dairy, on behalf of himself and similarly situated truck drivers employed by defendant, for payment of overtime wages pursuant to the New Jersey Wage and Hour Law (WHL). In this appeal, the Court considers whether defendant could assert a defense to the action under N.J.S.A. 34:11-56a25.2 based on its good-faith reliance on certain determinations by employees of the Department of Labor and Workforce Development (Department) that defendant is a “trucking industry employer.”
Subject to exceptions enumerated in the statute, the WHL provides that an employer shall “pay each employee not less than 1 1⁄2 times such employee s regular hourly rate for each hour of” overtime. N.J.S.A. 34:11-56a4(b)(1). The WHL, however, creates an exemption from that overtime compensation requirement for employees of a “trucking industry employer.” N.J.S.A. 34:11-56a4(f).