NJ Law Against Discrimination Can Apply to NJ Company’s Out-of-State Employee

In a recent landmark ruling, a federal court has allowed an out-of-state employee to pursue a discrimination claim under New Jersey law. The ruling is the first of its kind in the state and has the potential to impact thousands of employees who work remotely for New Jersey-based companies. Although the case concerned claims of equal pay violations, its implications extend to all forms of discrimination prohibited by New Jersey law.

The plaintiff in the case, Schulman v. Zoetis, Inc., was a veterinary pathologist who worked remotely for a global animal health company headquartered in New Jersey. Dr. Frances Schulman alleged that Zoetis, Inc. paid her less than male colleagues who performed the same job, even though she had more experience. When she raised the issue with HR, the company refused to address it. Schulman filed a lawsuit against Zoetis for violations of the Equal Pay Act and Title VII, as well as New Jersey equal pay and antidiscrimination law. The case was filed in federal court, since Schulman resides in Pennsylvania. Zoetis argued that Dr. Schulman could not pursue her claims under New Jersey law because she worked remotely from her home in another state.

The New Jersey Supreme Court has not yet issued a controlling decision on whether the LAD applies to employees of a New Jersey company who work outside the state. As such, the federal court predicted how the state court would resolve the issue. The court found that New Jersey law has a closer connection to the facts of the case. Zoetis’s headquarters was located in New Jersey and that the company’s employment decisions were made in New Jersey. The court also found that Schulman’s work had a substantial impact on New Jersey, as she regularly communicated with Zoetis employees in New Jersey and provided services to New Jersey clients.

The court’s ruling is a significant victory for employees who live and work out-of-state for New Jersey-based companies. It means that these employees can now pursue discrimination claims under New Jersey law. This is particularly relevant in today’s evolving economy, where working remotely has become increasingly prevalent.

The Schulman ruling could apply to discrimination based on any protected category under the LAD, including gender, sexual orientation, age, race, ethnicity and disability. If you are an employee who works out of state for a New Jersey-based company and you believe that you have been mistreated in violation of state law, you should contact an employment discrimination attorney to discuss your rights.

At Deutsch Atkins & Kleinfeldt, P.C. in Hackensack, New Jersey, we have wide experience in championing the rights of employees facing job discrimination. To schedule your confidential consultation, call 551-245-8894 or contact us online.