Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
Author: Scarinci Hollenbeck, LLC
Date: April 11, 2013
The Firm
201-896-4100 info@sh-law.comA recent New Jersey employment decision highlights how important it is for employers to implement and enforce anti-harassment policies.
The Appellate Division dismissed a sexual harassment lawsuit after finding that the employer used due care in adopting and implementing an effective anti-sexual harassment policy.
In Aguas v. State of New Jersey, a corrections officer filed a complaint against the State of New Jersey, alleging violations of the Law Against Discrimination (LAD), due to the sexual harassment/hostile work environment created by her supervisors. The allegations included repeated sexual advances at the hands of her male supervisor.
The court ultimately dismissed the suit on summary judgment. Although it found that the plaintiff established a prima facie showing of sexual harassment, it concluded that employer liability was inappropriate because the defendant instituted a proper anti-discrimination policy and engaged in a thorough investigation of the claims.
The Appellate Division agreed with the lower court. It found that the record was devoid of any proof on which to hold the State vicariously liable for the offending conduct of its employees.
In reaching its decision, the court relied on Gaines v. Bellino, 173 N.J. 301 (2002), wherein the court stated, “A defendant is entitled to assert the existence of an effective anti-sexual harassment workplace policy as an affirmative defense to vicarious liability . . . .” The Gaines decision further outlined several factors relevant to determining whether an employer has acted negligently in failing to establish an anti-harassment policy, including:
In this case, the court found that the NJ Department of Corrections had a written policy prohibiting discrimination, harassment, and retaliation, which set forth procedures for reporting misconduct (i.e., by filing a formal complaint). While the plaintiff maintained that she never received training, the court noted that the fact that she filed a prior complaint indicates that she knew how to report discriminatory conduct.
The court also agreed that defendant launched a sufficiently comprehensive investigation into the alleged harassment. As the opinion highlighted, “The inquiry endured for over a month and involved interviews of all relevant individuals and the taking of witness statements. In other words, this was not an investigation ‘in name only.’”
As this case highlights, it is possible for an employer to successfully defend a sexual harassment lawsuit by enacting comprehensive policies and procedures to address workplace harassment and then following through with them if a complaint is filed. Conversely, failing to do so can result in a costly lawsuit.
If you have any questions about this case or would like to discuss your company’s anti-harassment policies and procedures, please contact me, Christine Vanek, or the Scarinci Hollenbeck attorney with whom you work.
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Compliance programs are no longer judged by how they look on paper, but by how they function in the real world. Compliance monitoring is the ongoing process of reviewing, testing, and evaluating whether policies, procedures, and controls are being followed—and whether they are actually working. What Is Compliance Monitoring? In today’s heightened regulatory environment, compliance […]
Author: Dan Brecher

New Jersey personal guaranty liability is a critical issue for business owners who regularly sign contracts on behalf of their companies. A recent New Jersey Supreme Court decision provides valuable guidance on when a business owner can be held personally responsible for a company’s debt. Under the Court’s decision in Extech Building Materials, Inc. v. […]
Author: Charles H. Friedrich

Commercial real estate trends in 2026 are being shaped by shifting economic conditions, technological innovation, and evolving tenant demands. As the market adjusts to changing interest rates, capital flows, and workplace models, investors, owners, tenants, and developers must understand how these trends are influencing opportunities and risk in the year ahead. Overall Outlook for Commercial […]
Author: Michael J. Willner

Part 2 – Tips Excluded from Income Certain employees and independent contractors may be eligible to deduct tips from their income for tax years 2025 through 2028 under provisions included in the One Big Beautiful Bill. The deduction is capped at $25,000 per year and begins to phase out at $150,000 of modified adjusted gross […]
Author: Scott H. Novak

Part 1 – Overtime Pay and Income Tax Treatment Overview This Firm Insights post summarizes one provision of the “One Big Beautiful Bill” related to the tax treatment of overtime compensation and related employer wage reporting obligations. Overtime Pay and Employee Tax Treatment The Fair Labor Standards Act (FLSA) generally requires that overtime be paid […]
Author: Scott H. Novak

In 2025, New York enacted one of the most consequential updates to its consumer protection framework in decades. The Fostering Affordability and Integrity through Reasonable Business Practices Act (FAIR Act) significantly expands the scope and strength of New York’s long-standing consumer protection statute, General Business Law § 349, and alters the compliance landscape for New York […]
Author: Dan Brecher
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!