In one of our posts last year, we wrote about the New Jersey Appellate Division’s decision in Maia v. IEW Construction Group, which interpreted New Jersey’s 2019 amendments to New Jersey’s wage and hour laws as applying retroactively. Those amendments related to the August 6, 2019, expansion of New Jersey’s wage and hour laws. Those amendments increased the statute of limitations for wage and hour claims from two to six years and increased the available liquidated damages to 200% of any wages owed.
The Appellate Division held that the new six-year statute of limitations and remedies applied retroactively to any case filed after the amendment’s effective date, regardless of when the claim accrued. This decision exposed employers to claims that would have otherwise been time-barred.
In a win for New Jersey employers, the New Jersey Supreme Court recently reversed the Appellate Division decision, holding that the six-year statute of limitations and new remedies applied to conduct occurring on or after the amendment’s effective date of August 6, 2019, but not to conduct occurring before then.
This decision is a victory for New Jersey employers as businesses no longer need to worry about claims that were thought to be time-barred under the prior two-year statute of limitations being resurrected.
Wage and hour claims can be particularly devastating to a business in New Jersey, given the six-year statute of limitations, 200% liquidated damages, and attorney fee shifting. Thus, even with this victory, employers should consult with experienced counsel to review their pay practices and ensure compliance with applicable laws.
If you have questions about your business’s compliance with New Jersey’s wage and hour laws, please schedule a complimentary consultation through our online scheduling system.
Information contained in this blog is provided for informational purposes and does not constitute legal advice or opinion. You should consult with an attorney about the specifics of your matter or legal issue.