Scarinci Hollenbeck, LLC, LLCScarinci Hollenbeck, LLC, LLC

Firm Insights

New Jersey Employers Can’t Set Time Limits for NJLAD Lawsuits

Author: Scarinci Hollenbeck, LLC

Date: July 15, 2016

Key Contacts

Back

Landmark NJ Supreme Court Ruling for NJLAD Lawsuits Time Restraint

NJLAD Lawsuits

Under New Jersey’s statute of limitations, workers generally have two years to file an employment lawsuit under the New Jersey Law Against Discrimination (NJLAD). In a landmark decision, the Supreme Court of New Jersey recently held that employers can’t amend that deadline by contract.

Facts of the Employment Lawsuit

During the hiring process to become a delivery driver for Raymour Furniture Company, Inc. (Raymour), Plaintiff Sergio Rodriguez (Rodriguez) completed a two-page application form. Rodriguez completed the application with the assistance of a friend, as he contends his ability to read or speak English is limited.

The application stated in capital letters: “I agree that any claim or lawsuit relating to my service with Raymour & Flanigan must be filed no more than six (6) months after the date of the employment action that is the subject of the claim or lawsuit. I waive any statute of limitations to the contrary.” It also contained the following warning: “Read carefully before signing—if you are hired, the following becomes part of your official employment record and personnel file.”

After working for several years, Rodriguez was terminated during a company-wide reduction in force (RIF). While Raymour stated that the employment decision was performance-related, Rodriguez subsequently filed a wrongful termination suit under the NJLAD, alleging that he was terminated in retaliation for having filed a workers’ compensation claim and was discriminated against based upon disability.

In response, Raymour cited the six-month deadline for filing suit set forth in the application as grounds for dismissal. In response, Rodriguez argued that the shortened limitation period was unconscionable and therefore unenforceable. The trial court dismissed the suit, and the Appellate Division affirmed.

While the appeals court concluded that the employment application amounted to a contract of adhesion, it determined that it was enforceable in light of its clear, unambiguous language and the ample time plaintiff had to review it. The appeals court further held that, absent a controlling prohibitory statute, parties may modify a statute of limitations if the shortened time period is reasonable and does not violate public policy.

New Jersey Supreme Court’s Decision

The New Jersey Supreme Court reversed the Appellate Division’s decision in Rodriguez v. Raymour Furniture Company, Inc. It held that “a private agreement that frustrates the LAD’s public-purpose imperative by shortening the two-year limitations period for private LAD claims cannot be enforced.”

In reaching its decision, the state’s highest court focused on the public-interest purpose of the LAD, which “seeks unequivocally to eradicate discrimination against any of New Jersey’s inhabitants.” As Justice Jaynee LaVecchia further explained, “The challenged provision cannot be viewed as a private contractual agreement by which private parties contract to limit private claims by shortening the generally applicable statute of limitations for such action.”

With regard to the importance of the NJLAD two-year time period for filing suit and the consequence of shortening it, Justice LaVecchia wrote:

[A] shortening of that period undermines and thwarts the legislative scheme by effectively divesting the aggrieved party of the right to pursue an administrative remedy. Additionally, since claimants may not immediately be aware of their cognizable claims, shortening of the period will effectively eliminate claims and frustrate the public policy of uniformity and certainty. Conversely, the shortened period may also compel attorneys to file premature LAD actions. Finally, the two-year period also allows an employer the opportunity to protect itself and promote the eradication of discrimination by investigating and resolving complaints before an LAD claim is filed.

Although the court’s decision focused on the NJLAD, it noted that it would have also invalidated the employee agreement based on the issue of unconscionability. “[B]ecause the provision at question was contained within an employment application and plaintiff could not bargain, the contract was one of adhesion, containing indicia of procedural unconscionability,” the court held.

NJLAD Lawsuits

Message for New Jersey Employers

The New Jersey Supreme Court’s decision makes it clear that the statute of limitations under the NJLAD is two years and that time period cannot be amended by employers through a private agreement. Therefore, if any of your employment applications, contracts, or employee policies limit workers’ time to sue, they should be revised immediately.

With respect to NJLAD compliance, the decision highlights that the court is committed to advancing the policy objectives behind the law. Therefore, New Jersey employers should put themselves in the best position to defend a suit by properly documenting performance issues, conducting regular training regarding retaliation and harassment, and thoroughly investigating and documenting any claims of discrimination.

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Scarinci Hollenbeck, LLC, LLC

Related Posts

See all
Guardianships in New Jersey: When a Loved One Can No Longer Manage Personal or Financial Affairs post image

Guardianships in New Jersey: When a Loved One Can No Longer Manage Personal or Financial Affairs

When a family member can no longer make important decisions for themself, the question is often not whether the family will step in, but whether they have the legal authority to do so. A spouse may manage household finances, or an adult child may arrange medical care and pay bills. Still, informal assistance does not […]

Author: Marc J. Comer

Link to post with title - "Guardianships in New Jersey: When a Loved One Can No Longer Manage Personal or Financial Affairs"
New Jersey’s Revised UHAC Regulations: What Residential Developers Need to Know About Affordable Housing Commitments post image

New Jersey’s Revised UHAC Regulations: What Residential Developers Need to Know About Affordable Housing Commitments

New Jersey residential developers with affordable housing obligations should carefully review their existing approvals, development agreements, and proposed deed restrictions in light of the State’s revised UHAC regulations (Uniform Housing Affordability Controls). The regulations, which took effect on November 6, 2025, significantly change the administration and physical requirements for affordable housing units. For developers with […]

Author: Wendy Rubinstein Quiroga

Link to post with title - "New Jersey’s Revised UHAC Regulations: What Residential Developers Need to Know About Affordable Housing Commitments"
“No Comment” Culture: Why Silence Is Often the Riskiest Legal Strategy post image

“No Comment” Culture: Why Silence Is Often the Riskiest Legal Strategy

A “no comment” response is sometimes the right call when a legal problem arises. As a blanket policy, however, it lets allegations go unanswered, deadlines pass, evidence disappear, and manageable disputes grow into expensive litigation. The businesses that fare best are usually the ones that say little publicly while acting decisively behind the scenes. When […]

Author: Sean M. Pena

Link to post with title - "“No Comment” Culture: Why Silence Is Often the Riskiest Legal Strategy"
Utility-Scale Battery Storage Projects: A Legal Roadmap for Developers, Property Owners and Other Stakeholders post image

Utility-Scale Battery Storage Projects: A Legal Roadmap for Developers, Property Owners and Other Stakeholders

Utility-scale battery energy storage systems (BESS) are becoming an increasingly important component of the electric grid throughout New Jersey, New York, and Pennsylvania. As renewable generation expands, electricity demand increases and grid operators seek greater flexibility, battery storage can help balance supply and demand while providing additional capacity and reliability. For developers, battery storage presents […]

Author: Nicholas Wall

Link to post with title - "Utility-Scale Battery Storage Projects: A Legal Roadmap for Developers, Property Owners and Other Stakeholders"
Navigating Disputes: Hire a Partnership Dispute Lawyer post image

Navigating Disputes: Hire a Partnership Dispute Lawyer

A falling out between partners can be disastrous for any business. In many cases, the partnership will not survive. If you are in an unworkable situation with your partners, it may be time to consult a partnership dispute lawyer experienced in handling partnership breakups and dissolutions before the situation deteriorates any further. It is easy […]

Author: Jay McDaniel

Link to post with title - "Navigating Disputes: Hire a Partnership Dispute Lawyer"
Section 363 Sales in Bankruptcy: What Businesses, Lenders, and Buyers Need to Know post image

Section 363 Sales in Bankruptcy: What Businesses, Lenders, and Buyers Need to Know

When a company enters Chapter 11 bankruptcy, many assume the process will culminate in a lengthy reorganization plan. However, distressed businesses are increasingly being sold through a different mechanism — a sale under Section 363 of the United States Bankruptcy Code. A Section 363 sale allows a company, as a debtor-in-possession in bankruptcy, to sell […]

Author: John D. Giampolo

Link to post with title - "Section 363 Sales in Bankruptcy: What Businesses, Lenders, and Buyers Need to Know"

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Sign up to get the latest from our attorneys!

Explore What Matters Most to You.

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!

* The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form. By providing a telephone number and submitting this form you are consenting to be contacted by SMS text message. Message & data rates may apply. Message frequency may vary. You can reply STOP to opt-out of further messaging.
“If you would like to submit a file, please email it directly to info@sh-law.com.

Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!