New Jersey Senate Bill S91

New Jersey 2022-2023 Regular Session

• Introduced: 1/11/22
• Refer: 1/11/22

Caption

Expands wage and hour law good-faith violation defense to DOLWD employee interpretations.

Impact

The impact of S91 on state laws is significant as it alters how wage and hour violations are adjudicated in New Jersey. By recognizing interpretations from authorized representatives of the Labor Department as a basis for the good faith defense, the bill could reduce the liability employers face for unintentional violations of wage laws. This could facilitate compliance among employers who seek to adhere to state laws but may receive conflicting guidance from departmental staff, thereby promoting a clearer regulatory environment.

Summary

Senate Bill S91, introduced by Senator Jean Stanfield, aims to amend the New Jersey State Wage and Hour Law by expanding the good faith violation defense available to employers. The bill allows employers to invoke this defense not only based on direct actions or interpretations from the Commissioner of Labor and Workforce Development and the Director of the Division of Wage and Hour Compliance but also based on guidance from their authorized representatives. This legislative change addresses legal concerns stemming from the case Branch v. Cream-O-Land Dairy, wherein an employer was found liable despite acting under the advice of department employees, which was deemed insufficient under the existing law.

Contention

However, the bill has sparked debate regarding its implications for worker protections. Proponents argue that it protects employers who act in good faith and helps mitigate unintended penalties stemming from minor misinterpretations. In contrast, critics might contend that it could diminish the responsibility of employers to ensure compliance with labor laws, potentially leading to exploitation of workers. The balance between protecting employer interests and safeguarding employee rights will be a central theme in discussions surrounding this legislation.