The New Jersey Supreme Court has sent a loud and clear message to employers in our State: employment agreements cannot shorten time limits for discrimination claims. In Rodriguez v. Raymours Furniture Company, Inc., the Court held that private contracts cannot shorten the statutorily provided 2-year statute of limitations under the New Jersey Law Against Discrimination (LAD).

In 2007, Raymour & Flanigan hired Rodriguez, an Argentinean immigrant with an eighth grade education, whose English was limited. The employment application clearly stated, in caps and bold lettering, that the employee waived the two-year statute of limitations and that any discrimination claims or law suits against the company must be filed within six months of the alleged incident.

Rodriguez filed a discrimination lawsuit against Raymour seven months after being fired. His lawsuit called the abridged limitations period “unconscionable” and claimed that it conflicted with public policy. Rodriguez asked the trial court to impose a judicial prohibition on employment agreements in which the employer unilaterally shortens the limitations period.

Relying on appellate precedent, the trial court granted the defense motion for summary judgment, dismissing Rodriguez’s case. The Appellate Division affirmed, finding the contract terms in line with prior rulings both in New Jersey and nationwide.

The New Jersey Supreme Court took a completely different direction, focusing on the public policy interests of the LAD. It stated that the LAD seeks to eradicate discrimination, which serves both public and private interests.

The Court noted that LAD provides two-statutory limitations periods for discrimination victims to seek relief:

1. Six-months to file a claim with the New Jersey Division on Civil Rights (DCR); and
2. Two years to file a lawsuit in state court.

Since New Jersey lawmakers specifically set up two fora for relief, any circumvention of this legislative scheme via contract frustrates legislative intent, rushes the DCR process; forces parties to file civil litigation before the DCR process is even finished; and ends lawsuits that may further the public interest.

The High Court’s departure from the prior holdings of New Jersey Appellate Division signals a major change in the law that has serious implications for New Jersey employers. It puts employees in a much better position, providing more options to bring discrimination lawsuits. Employers who previously took advantage of a contractual loophole are now obligated to review and amend their application forms and other types of employment contracts.

If you have been unjustly terminated from your job due to discrimination or retaliation, please contact an employment law attorney for workers.  At Hanan M. Isaacs, P.C., we will listen to your facts, advise you of the law, and guide you through the complex area known as employment law.  The New Jersey Supreme Court has made it clear that you have a right to file your lawsuit up to two (2) years after an unjust firing based on discrimination. Call our Central New Jersey offices at 609-683-7400 or contact us online today to schedule an initial consult.  You will be glad you did.