Gibbons Law Alert

Gibbons Law Alert Blog

NJ Department of Labor Issues New Poster Notification for All Employers

Posted in Policies and Handbooks / Wage and Hour

On November 23, 2011

The New Jersey Department of Labor and Workforce Development (“DOL”) recently issued a new notice regarding the maintenance and reporting of employment records. All New Jersey employers must immediately begin providing a copy of the notice upon hire to any employee hired after November 7, 2011. For all pre-existing employees, the notice must be provided by December 7, 2011. Provision of the notice may be provided by hard copy or electronic mail. In addition to these distribution requirements, the notice must immediately be conspicuously posted at each worksite either by displaying it alongside other required workplace postings in a readily visible and accessible location or on an employer-run Internet or intranet site that is used exlusively by employees and to which all employees have access. Failure to comply with the distribution and and posting requirements carries a fine of up to $1,000, in addition to possible criminal penalties.

Lack of Standing and Choice-of-Law Rules Doom Nationwide Consumer Fraud Class Action Against BMW

by Michael R. McDonald

Posted in General Litigation

On November 23, 2011

On October 31, 2011, in Nirmul v. BMW, the District Court for the District of New Jersey dismissed a nationwide class action against BMW asserting claims under the New Jersey Consumer Fraud Act (“NJ CFA”), concluding, essentially, that none of the three plaintiffs had a standing to sue. The complaint alleged that the high pressure fuel pump in BMW’s N54 turbo engines had a known defect and that BMW failed to disclose this fact to purchasers throughout the country.

NJ Department of Labor Proposes Re-Adoption of Inside Sales Exemption

by Gibbons P.C.

Posted in Wage and Hour

On November 22, 2011

As we previously reported on September 6, 2011, the New Jersey Department of Labor and Workforce Development (NJDOL) adopted the so-called “white collar” exemptions for Administrative, Executive, Professional, Outside Sales, and Computer employees as contained in the Federal Fair Labor Standards Act (“FLSA”). While the changes to the New Jersey law were designed to provide clarity to the state’s wage and hour landscape and consistency between the federal and New Jersey laws, they inadvertently eliminated a long-recognized exemption in New Jersey for commissioned inside salespersons. Because the New Jersey and federal exemptions for such sales personnel are different and were housed in different sections of the law — New Jersey’s treatment of inside salespersons was part of the “Administrative” exemption, whereas the FLSA addresses the issue in an entirely separate section — New Jersey’s replacement of its “Administrative” exemption with that found in the FLSA resulted in the deletion of the inside salesperson exemption. Acknowledging that this was an “unintended consequence,” the DOL has issued proposed regulations to reinstate the inside sales exemption to New Jersey law. In the November 21, 2011 New Jersey Register, the DOL proposed that the following language be added to N.J.A.C. 12:56-7.2 as section (c): “‘Administrative'” shall also include an employee whose primary duty consists of sales activity and who receives at least 50 percent of his or her total compensation from commissions and a total compensation of not less than $400.00 per week.” A public hearing on the re-adoption of this exemption is scheduled for December 13, 2011 and written comments must be submitted by January 20, 2012.

Gibbons Intellectual Property Department Attains National and Metropolitan Rankings in 2012 Best Lawyers

by Gibbons P.C.

Posted in Patent

On November 18, 2011

Gibbons P.C. is proud to announce that two practices within its Intellectual Property Department have achieved national and metropolitan rankings in the 2012 edition of Best Lawyers®, the oldest and most respected peer-review publication in the legal profession. In addition, Department Chair David E. De Lorenzi has been individually ranked in three different IP categories.

Extended Access to Cell-Site Records Constitutes Fourth Amendment Search, Which Requires Showing of Probable Cause

by Stephen J. Finley, Jr.

Posted in E-Discovery: Legal Decisions and Court Rules

On November 17, 2011

Law enforcement must establish probable cause to obtain a suspect’s cell-site-location records according to a recent federal decision, In Re Application of the United States of America for an Order Authorizing the Release of Historical Cell-Site Information. In that case, Judge Nicholas G. Garaufis of the United States District Court for the Eastern District of New York ruled that a prosecutor’s application for access to a criminal defendant’s cell-site-location records pursuant to the Stored Communication Act (“SCA”) was insufficient to allow their release. Judge Garaufis determined that access to records revealing a criminal defendant’s movements over an extended period of time constitutes a “search” under the Fourth Amendment. Accordingly, such information can only be released upon a showing of probable cause and the issuance of a warrant.

Reasonable Accommodation May Include Assisting Employee’s Commute to Work, Holds 2nd Circuit

by Gibbons P.C.

Posted in Disability

On November 17, 2011

Joining a growing number of jurisdictions, including the Third and Ninth Circuit Courts of Appeal, the Court of Appeals for the Second Circuit, covering the states of New York, Connecticut and Vermont, has held that under certain circumstances, an employer may be required to assist disabled employees with their commute to work as a reasonable accommodation under both the Americans with Disabilities Act(“ADA”) and the Rehabilitation Act. The Court’s decision in Nixon-Tinkelman v. N.Y. Dep’t of Health & Mental Hygiene highlights an employer’s obligation to consider reasonable accommodations requested by employees with disability-related commuting problems.

In Defense of Color Trademarks: INTA Submits Amicus Brief in Christian Louboutin v. Yves Saint Laurent

by Gibbons P.C.

Posted in Trademarks

On November 16, 2011

On Monday, the International Trademark Association (“INTA”) filed an amicus curae brief with the United States Court of Appeals for the Second Circuit in Christian Louboutin S.A. v. Yves Saint Laurent America Holding, Inc.. In that brief, INTA argued that the lower court’s decision should be vacated and remanded on the basis that the court did not properly evaluate Louboutin’s federally registered trademark, failed to accord that mark the legal presumption of validity to which it is entitled under federal law, and did not use the appropriate test for aesthetic functionality.

The Fifth Annual Gibbons E-Discovery Conference Kicks Off with an Interactive and Thought-Provoking Overview of the Past Year’s Pivotal E-Discovery Case Decisions

by Robert D. Brown, Jr.

Posted in E-Discovery: Legal Decisions and Court Rules / Litigation Preparedness and Strategies

On November 16, 2011

The Fifth Annual Gibbons E-Discovery Conference kicked off with an interactive overview of the important judicial decisions from 2011 that shaped and redefined the e-discovery landscape. Before an audience of general and in-house counsel, representing companies throughout the tri-state area, the esteemed panel of speakers, including Michael R. Arkfeld, Paul E. Asfendis, and Mara E. Zazzali-Hogan, moderated by Scott J. Etish, tackled the issues faced by the courts over the past year. Through a series of hypotheticals, the panelists and attendees analyzed and discussed how to handle the tough e-discovery issues that arose and how the courts’ decisions again reshaped the e-discovery landscape as we know it. Litigation hold protocols and spoliation concerns, the use of social media in discovery with its attendant ethical concerns, and the use of social media and the Internet in the courtroom were the hot topics of the day. This interactive overview of the past year’s hot button, e-discovery issues was an instant success and clearly set the tone for the remainder of the conference.

Donelson Update — Employer Liable for Punitive Damages and Attorneys’ Fees Under CEPA

by Richard S. Zackin

Posted in Whistleblower

On November 15, 2011

In our June 15, 2011 post, we reported on Donelson v. DuPont Chambers Works, a case in which two employees alleged they were retaliated against after they raised safety concerns about the employer’s manufacture of a dangerous chemical. The jury rendered a verdict in favor of one employee (Seddon) and against the other (Donelson). On appeal, the New Jersey Supreme Court held that the employer was liable under New Jersey’s Conscientious Employee Protection Act (“CEPA”) for the economic losses of Seddon, who was unable to continue working because of his mental injuries caused by the employer’s retaliatory actions. The Court reversed the decision of the Appellate Division that Seddon could not recover his economic losses because he had not been discharged or constructively discharged from his job. The Supreme Court remanded the case to the Appellate Division to decide the issues of punitive damages and attorneys’ fees.

Negotiated Sale of Customized Computer to Sophisticated Business Is Not a Sale of “Merchandise” Within the Meaning of the New Jersey Consumer Fraud Act

by Gibbons P.C.

Posted in General Litigation

On November 15, 2011

New Jersey courts have long held that businesses may assert claims under New Jersey’s Consumer Fraud Act (“CFA”) in appropriate circumstances. See Hundred E. Credit Corp. v. Schuster. Whether a business is entitled to assert a CFA claim typically turns on the specific facts of the case and whether the transaction at issue constitutes a “sale of merchandise” within the meaning of the CFA. See N.J.S.A. § 56:8-2. In Princeton Healthcare System v. Netsmart New York, Inc., the Appellate Division confronted this precise issue in holding that Princeton Healthcare, a sophisticated business entity, was not entitled to assert a CFA claim against Netsmart arising out of the sale and implementation of a customized computer system.