Posted On: January 22, 2009

Unlicensed NJ Employment Agency Prevented From Enforcing Employment Agreement with its Consultant

I keep telling consulting companies and employment agencies in New Jersey who want to sue my clients for violating non-compete agreements and other employment agreements to forget about it if they are not registered or licensed by the New Jersey Division of Consumer Protection. I guess they aren't listening. New Jersey's appellate court, in an unpublished opinion, Camo Technologies Inc. v. Pathan, Appellate Division Docket No. 25-2-2610, January 2, 2009, just affirmed a lower court's decision to dismiss an employment agency's case against its former consultant because it had failed to register with or become licensed by the State. When will these companies learn?

As I have blogged about before, employment agencies in the State of New Jersey must register with or become licensed by the New Jersey Division of Consumer Protection before doing business here. If a company fails to become registered or licensed, any employment agreements they enter into with their consultants are null and void from the inception. The law actually prohibits such consulting companies/employment agencies from bringing lawsuits to enforce agreements with its consultants. This is not a gray area of the law. Thanks to this recent Camo Technologies case, as well as the earlier cases, this principle of law is now well-established.

Camo Technologies and other unregistered/unlicensed employment agencies should be ashamed for suing consultants when they know that such lawsuits cannot be brought, let alone be successful. Unfortunately, many consultants, both domestic U.S. workers and those here on H1-B visas, are unaware of the law and the protections the law gives them. They may feel intimidated and decide to give in to their former employer's unreasonable and unlawful demands.

If you are a consultant who is being sued or threatened with a lawsuit from your employment agency, seek out a reputable and experienced NJ employment contract and non-compete agreement attorney to assist you. Your former employer's failure to register with or obtain a license from the State could be the "silver bullet" to help you quickly and successfully resolve your case.

Posted On: January 15, 2009

Is It Ever Okay to Be "Just Friends" with the Boss?

We all know that male bosses shouldn't sexually harass their female subordinates, and that female employees should promptly rebuff and report any inappropriate comments by their male bosses to HR or management. But what if you're a female professional and genuinely like your male boss, as a friend? Is it ever okay to be "just friends" with the boss? Some of my recent cases have brought home the message that when it comes to male supervisors and female subordinates, even being "just friends" with the boss is extremely risky.

The problem lies in perception. You may be completely well-intentioned. Your boss may be a family man, a genuinely nice guy. However, as soon as the friendship becomes known in the office, the time bomb starts ticking. Your coworkers may perceive the friendship as something more. An innocent lunch shared with your boss off-campus becomes fodder for speculation and gossip. Work-related telephone calls from your boss or one-on-ones with him only fuel the rumors more. Rumors in the workplace have a tendency to get out of hand quickly. If the rumors are made known to management, they may have send in HR to investigate whether the relationship is "consensual." Your integrity, your judgment, and your credibility will be called into question. Even if the investigation reveals nothing more than the "just friends" relationship, the damage to your career is done.

My advice to any female professional who is considering a "just friends" relationship with their male boss give careful consideration to the way such relationship will be perceived by everyone else in the workplace. It takes just one disgruntled employee to start a vicious and hurtful rumor that can spread like wildfire, damaging your valuable, hard-earned career in the process.

Posted On: January 5, 2009

2008 A Good Year for Employment Law Plaintiffs in New Jersey

2008 turned out to be a very good year for employment law plaintiffs who tried their cases in New Jersey courts. Indeed, as published in the New Jersey Law Journal's "New Jersey Legal Almanac 2008," there were six verdicts of more than $1,000,000 awarded by New Jersey juries to employment law plaintiffs, including two verdicts of more than $10,000,000. These verdicts should help make our State's employers think twice before engaging in any type of illegal discrimination or whistleblower retaliation toward their employees in 2009 and beyond.

We should keep these large verdicts in perspective, however. Statewide, there were 120 verdicts or settlements over $1,000,000 in 2008, so the percentage of employment law plaintiffs receiving seven-figure awards is relatively low. Also keep in mind that thousands of employment law cases are resolved by verdict or settlement in New Jersey each year, so the percentage of employment cases which result in large monetary awards is actually quite small.

Nonetheless, each plaintiff's victory in the field of employment law is a step forward in my and my colleagues' ongoing battle to eradicate discrimination and retaliation from the workplaces of this State. I heartily congratulate the dedicated plaintiff's employment lawyers who furthered our cause in 2008.