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FMG Law Blog Line

Posts Tagged ‘New Jersey’

Say Goodbye to Arbitration; Say Goodbye to Confidentiality?

Posted on: December 20th, 2017

By: Christopher M. Curci

On December 4, 2017, New Jersey state Senator Loretta Weinberg introduced Senate Bill S-3581. The bill aims to (1) eliminate arbitration provisions in employment agreements related to discrimination, retaliation, and harassment claims, and (2) eliminate confidentiality clauses that are commonly found in employment settlement agreements for those claims.  The bill would bring significant change in the handling of employment litigation in New Jersey.

A recent study by the Economic Policy Institute found that 54% of non-union employers have mandatory arbitration procedures for employment related disputes. In 1992, that number was a mere 2%.  The meteoric rise in arbitration agreements is because employers consider arbitration less costly than federal or state court litigation, and because arbitration eliminates the risk of “runaway jury” awards to plaintiff-employees.  Conversely, opponents of mandatory arbitration assert that such agreements prohibit employees from having access to their full legal rights under federal and state employment laws.

Regarding confidentiality clauses, such clauses are almost always found in settlement agreements between employers and employees. However, the recent explosion of high-profile allegations of sexual harassment and the #MeToo social media movement has started a dialogue regarding whether confidentiality clauses should be made unlawful.  It is within this backdrop that Senator Weinberg has proposed Senate Bill 3581.

If passed, the bill would eliminate the use of arbitration for discrimination, retaliation, and harassment claims, and make it unlawful to have “confidential” settlements of such disputes. Employers should keep an eye on this bill and prepare to make necessary changes to their employment contracts and employee handbooks if the bill becomes law.  Employers should also consider the bill’s potential impact on any current or expected litigation.  Christopher M. Curci represents employers in litigation and advises his clients on all aspects of employment law.  If you need help with this or any other employment issues, he can be reached at [email protected].

Another Super Bowl in New Jersey? Unlikely!

Posted on: December 19th, 2017

By: Joshua G. Ferguson

A Third Circuit panel issued an opinion last week in an NFL fan’s class action alleging the National Football League violated New Jersey’s consumer fraud law by failing to make enough 2014 Super Bowl tickets available for sale, finding that the economic factors presented created a plausible theory that the league’s conduct inflated prices.

The three-judge panel reversed the district court’s decision to dismiss the claim brought by Josh Finkelman alleging that the NFL’s lottery ticket policy for the Super Bowl distributed a fraction of the tickets to the public. Plaintiff relied on a statute which requires the sale of 95 percent of all tickets of any event held in New Jersey.  In their amended complaint Plaintiff cited the opinion of sports economist Dr. Daniel Rascher’s that Finkelman paid more on the secondary market for his tickets to Super Bowl XLVIII than he would have had the NFL not withheld more than 5 percent of tickets from sale to the public, and in doing so violated the New Jersey Consumer Fraud Act.

In rendering the decision, The Third Circuit deferred the action to the Supreme Court of New Jersey to certify the meaning of the New Jersey ticket law statute and determine if the NFL’s violation falls within that statute.

For further information or for further inquiries involving hospitality law, you may contact Joshua Ferguson of Freeman Mathis & Gary, LLP, at [email protected].

New Jersey Imposes Another Posting Requirement on Employers

Posted on: October 5th, 2012

By: Brad Adler

In addition to a record keeping requirement notice, a family leave insurance notice and others, New Jersey employers now will be required to post and distribute to employees a notice of their right to work in an environment free from gender-based pay discrimination.  The new law applies to organizations with 50 or more employees and goes into effect on November 21, 2012, although it remains to be seen whether the New Jersey Department of Labor will have a form notice ready by that time.

When the law does go into effect (and the form is available), covered employers will be required to initially distribute a copy of the notice to all employees within 30 days after the Department of Labor publishes the notice.  Thereafter, an employer must provide the notice to all employees annually or sooner if an employee requests a copy of the notice.