Employers will sometimes attempt to play on sympathy of their workers when they withhold portions of employees’ earned wages by claiming “business is slow”, or they had “unanticipated expenses”, or simply that they “cannot afford it”. In New Jersey, under the state’s Wage Payment Law, no employer may withhold or divert any portion of an employee's wages unless the employer is required to do so by New Jersey or United States law or the amounts withheld or diverted are for contributions, payments, fees, or deductions authorized by the employee and approved by the employer. N.J.S.A. § 34:11-4.4. An employee may have additional claims if the employer is discriminating in wage payment based on employee being a member of a protected class. See New Jersey Race Discrimination Lawyer.
Unscrupulous employers may allege when a worker complains about not being paid in full, that they are simply temporarily “diverting” the employee’s wages for the employee’s own benefit. Be aware of your employer using “diversion” as the reason: the Wage Payment Law is very specific as to strictly prescribed circumstances when an employer may legally divert your wages. You may read the comprehensive list in NJ Statute § 34:11-4.4. which defines eleven distinct circumstances when wages may be legally withheld or diverted, below.*
Don’t sit on your rights. If your employer failed to pay your wages in accordance with the law, or if you think you have been retaliated against for asserting your legal rights, you should contact this law office immediately for a free consultation. This law office accepts cases from all over New Jersey and has locations in Southern, Central and Northern NJ to meet with clients. Call today for a free consultation.
Increased Protection from Retaliation under the NJ Wage Theft Act
Although the Wage Payment Law already had prohibited retaliation by employers against employees who seek to enforce their rights, The New Jersey Wage Theft Act on August 6, 2019, amended the Wage Payment Law to expand the prohibitions of an employer’s retaliation against workers who complain about their employers' alleged violations of the Wage Payment Law. A complaining employee’s protection from employer retaliation is not limited to formal complaints filed in a court or with Department of Labor. A complaining employee’s actions explicitly protected from retaliation under the Wage Theft Act (WTA) now include:
Retaliation for complaining to their employer about alleged non-payment and other violations under the Wage Payment Law.
Retaliation for partaking in general discussions about wage rights with co- workers.
Retaliation for an employee complaining to employee representatives.
The Wage Theft Act strikingly increased the monetary damages, remedies, penalties, and other liabilities for employers who do not pay their employees according to Wage Payment Act. An employer found liable for violating the law by failing to pay wages to an employee must pay:
The full amount of any wages due to employee,
Liquidated damages equal to 200 percent of the wages due,
The cost of litigation, and Attorney’s fees.
Employer Defense If Good Faith Error for First Time Offenders
For employers who are first time offenders, there is a defense to the imposition of liquidated damages if the employer can show that:
- The employer’s violation was an inadvertent error made in good faith,
- The employer had reasonable grounds to believe there was no legal violation, and
- The employer agrees to pay the amount due to the employee within 30 days of receiving notice of the violation.
Increased Statute of Limitations
Under the Wage Theft Act, the statute of limitations for claims brought under New Jersey’s Wage and Hour laws increased from two years to six years. See New Jersey Age Discrimination Lawyer.
Class Actions Explicitly Allowed
The Wage Theft Act clearly stipulates that employees still can bring class actions under the Wage and Hour Law and Wage Payment Law on behalf of similarly situated co-workers who have experienced the same employer’s violation of their rights. However, not all harmed workers may have sufficient facts to file in a class action. See NJ Employment Attorney What Is Required for a Class Action Lawsuit?
Also, in many instances, it is more advantageous for a plaintiff to file individually. See NJ Race Discrimination Attorney: My Employer Discriminates Against Black Workers, Should We File Class Action?
*The New Jersey law, N.J.S.A. 34:11-4.4., Defines What Wages May Be Legally Withheld or Diverted As Follows:
34:11-4.4. Withholding from wages
No employer may withhold or divert any portion of an employee’s wages unless:
a. The employer is required or empowered to do so by New Jersey or United States law; or
b. The amounts withheld or diverted are for:
(1) Contributions authorized either in writing by employees, or under a collective bargaining agreement, to employee welfare, insurance, hospitalization, medical or surgical or both, pension, retirement, and profit-sharing plans, and to plans establishing individual retirement annuities on a group or individual basis, as defined by section 408(b) of the federal Internal Revenue Code of 1986 (26 U.S.C. § 408(b)), or individual retirement accounts at any State or federally chartered bank, savings bank, or savings and loan association, as defined by section 408(a) of the federal Internal Revenue Code of 1986 (26 U.S.C.§ 408(a)), for the employee, his spouse or both.
(2) Contributions authorized either in writing by employees, or under a collective bargaining agreement, for payment into company-operated thrift plans; or security option or security purchase plans to buy securities of the employing corporation, an affiliated corporation, or other corporations at market price or less, provided such securities are listed on a stock exchange or are marketable over the counter.
(3) Payments authorized by employees for payment into employee personal savings accounts, such as payments to a credit union, savings fund society, savings and loan or building and loan association; and payments to banks for Christmas, vacation, or other savings funds; provided all such deductions are approved by the employer.
(4) Payments for company products purchased in accordance with a periodic payment schedule contained in the original purchase agreement; payments for employer loans to employees, in accordance with a periodic payment schedule contained in the original loan agreement; payments for safety equipment; payments for the purchase of United States Government bonds; payments to correct payroll errors; and payments of costs and related fees for the replacement of employee identification, which is used to allow employees access to sterile or secured areas of airports, in accordance with a fee schedule described in any airline media plan approved by the federal Transportation Security Administration; provided all such deductions are approved by the employer.
(5) Contributions authorized by employees for organized and generally recognized charities; provided the deductions for such contributions are approved by the employer.
(6) Payments authorized by employees or their collective bargaining agents for the rental of work clothing or uniforms or for the laundering or dry cleaning of work clothing or uniforms; provided the deductions for such payments are approved by the employer.
(7) Labor organization dues and initiation fees, and such other labor organization charges permitted by law.
(8) Contributions authorized in writing by employees, pursuant to a collective bargaining agreement, to a political committee, continuing political committee, or both, as defined in section 3 of P.L.1973, c.83 (C.19:44A-3), established by the employees’ labor union for the purpose of making contributions to aid or promote the nomination, election or defeat of any candidate for a public office of the State or of a county, municipality or school district or the passage or defeat of any public question, subject to the conditions specified in section 2 of P.L.1991, c.190 (C.34:11-4.4a).
(9) Contributions authorized in writing by employees to any political committee or continuing political committee, other than a committee provided for in paragraph (8) of this subsection, for the purpose of making contributions to aid or promote the nomination, election or defeat of any candidate for a public office of the State or of a county, municipality or school district or the passage or defeat of any public question, subject to the conditions specified in section 2 of P.L.1991, c.190 (C.34:11-4.4a); in making a payroll deduction pursuant to this paragraph the administrative expenses incurred by the employer shall be borne by such committee, at the option of the employer.
(10) Payments authorized by employees for employer-sponsored programs for the purchase of insurance or annuities on a group or individual basis, if otherwise permitted by law.
(11) Such other contributions, deductions and payments as the Commissioner of Labor and Workforce Development may authorize by regulation as proper and in conformity with the intent and purpose of this act, if such deductions are approved by the employer.
Do not sit on your rights, or you may lose the right to file your claim.
If your employer cheated you out of wages or if you have been demoted, had your hours cut, terminated, harassed or been subjected to retaliation for complaining about, objecting to, refusing to participate in, or reporting what you believe is your employer’s illegal wage payment or other improper conduct, you should contact this law firm today for a free consultation. I am an experienced, aggressive and compassionate employment attorney who will be aggressive about enforcing your rights. This law office accepts cases from all over New Jersey and has locations in Southern, Central and Northern NJ to meet with clients.
If you are being subjected to such unlawful workplace acts or retaliation, contact Hope A. Lang, Attorney at Law today for a free consultation.
Hope A. Lang, Attorney at Law represents workers throughout the entire state, including Hackensack, Jersey City, Newark, Irvington, Orange, East Orange, Trenton, Paterson, Montclair, Elizabeth, North Brunswick, Cherry Hill, Vineland, Union, Plainfield, Hamilton Township, Lakewood, Edison, Parsippany-Troy Hills, Franklin, Lakewood, and every NJ County, including Bergen, Hudson, Middlesex, Essex, Monmouth, Somerset, Ocean, Union, Camden, Passaic, Morris, Gloucester, Atlantic, Burlington, Camden Counties.