Pending legislation could dramatically expand the right of New Jersey employees to recover back pay based on wage discrimination claims. Senate Bill No. 1933/Assembly Bill 2650 would amend the New Jersey’s Law Against Discrimination (NJLAD), delineating the initial discriminatory act or decision as a “continuing violation” each time compensation is provided to the affected employee. Currently, the act of paying wages or other compensation that is preceded by a discriminatory decision is considered a discrete wrongful act under the New Jersey Supreme Court decision Alexander v. Seton Hall University, 204 N.J. 219 (2010). The Alexander decision ruled that the statute of limitations for back pay under the NJLAD is two years prior to the filing of a wage discrimination lawsuit.
If the pending legislation is signed into law by the governor, the right to back pay could extend back to the original discriminatory compensation decision. This means an employee may be able to obtain back pay for years prior, up to the date of hire. The potential extension of the period for which one may seek back pay could significantly increase the value of discriminatory compensation claims.
Given Gov. Christie’s pro-business orientation, there is skepticism regarding whether he will sign the bill into law, but the possibility exists that the state legislature would override the governor’s veto. Because the bill designates that a discriminatory practice or decision under the NJLAD occurs every time wages, benefits or other forms of compensation are paid, each new paycheck or compensatory act effectively constitutes a re-start of the statute of limitations.
If you file an action for financial compensation under the NJLAD, the amount of compensation you receive can turn on subtle factual distinctions or sophisticated legal nuances. This is one example of how legal distinctions can make a substantial difference in the amount of compensation you receive for your wage discrimination legal claim.