Trends In New Jersey Employment Law - August 2014

LAD Roundup

In recent weeks, New Jersey's primary employment discrimination statute—the Law Against Discrimination (LAD)—has been the focus of judicial scrutiny.

In Smith v. Millville Rescue Squad, No. A-1717-12T3, 2014 WL 2894924 (App. Div. June 27, 2014), New Jersey's Appellate Division for the first time defined the scope of "marital status" protection under LAD to encompass the "state of being divorced." In Vargas v. INX International, Inc., No. A-3993-12T3, 2014 WL 3407245 (App. Div. July 15, 2014), the Appellate Division required the plaintiff to arbitrate his LAD claims against his former employer pursuant to a mandatory arbitration agreement, but refused to compel arbitration of the same claims brought against an "intertwined" entity who was not a signatory to the agreement. In State v. Saavedra, 217 N.J. 289 (2014), the New Jersey Supreme Court granted certification on the issue of whether employees who steal confidential documents from their employers to support discrimination suits under the LAD can face criminal indictment. This newsletter summarizes these three cases and examines their implications for New Jersey employers.

Smith v. Millville Rescue Squad

Facts

The plaintiff, Robert Smith, worked for the defendant, Millville Rescue Squad (MRS), for nearly two decades, first as a certified emergency medical technician and later as director of operations. The plaintiff's wife also was a long-term employee at MRS. In January of 2006, the plaintiff and his wife separated after eight years of marriage shortly after she discovered her husband's alleged extramarital affair.

Allegedly, MRS' executive director informed the plaintiff that the company terminated his employment "because he and his wife were going to go through an ugly divorce." MRS denied these allegations, countering that the plaintiff was terminated for performance reasons.

The plaintiff ultimately filed suit in state court alleging that his termination constituted discrimination based on marital status and gender under LAD. After the trial court granted MRS' motion for dismissal, the Appellate Division reversed as to plaintiff's marital status discrimination claim.

Holding

The LAD does not expressly define the term marital status. "In the absence of a narrow definition," the Appellate Division "accorded LAD a liberal reading in view of its remedial purpose" and, thus, "interpret[ed] 'marital status' to encompass the state of being divorced." Although recognizing that...