Statutes of limitation restrict the time within which a plaintiff may initiate a legal proceeding. In general, once the statutory period has run, an individual loses the right to file a claim, regardless of its merits. A case that would be good today may become dead and “unbringable” by tomorrow.

Proponents argue that without statutes of limitation, plaintiffs could sit on claims indefinitely while evidence to disprove disputed matters goes stale or disappears. Most criminal prosecutions, all personal injury cases, and all employment law matters rely on statutes of limitations to improve judicial efficiency and give prosecutors and plaintiffs an incentive to pursue meritorious claims within a reasonable timeframe.

May NJ companies contract around the law?

As their name implies, limitations periods are set by statute, reducing ambiguity as to the filing deadline. Recently, some New Jersey employers have tried to contractually limit the time within which their employees must bring suit, with time periods shorter than employees are guaranteed by law. They have done this by including such restrictive language in employment applications, contracts, or handbooks. In essence, these employers require employees to trade off the future exercise of their legal rights for present gainful employment.

Are private limitations periods enforceable?

One New Jersey man recently discovered the power and detriment of contractual limitations clauses when he tried to sue his employer, a major furniture and mattress retailer. The employee sustained a serious knee injury on the job, which required surgery, his absence from work, and light-duty assignments. Just three days after returning to unrestricted work, the man was fired assertedly as part of a company-wide reduction in force, but also, said the company, because of his “sub-standard job performance.” The employee’s suit alleged he was actually let go in retaliation for filing a workers’ compensation claim, constituting discrimination based upon disability, in violation of New Jersey’s Law Against Discrimination (N.J.S.A. 10:5-1 to -49).

NJ’s highest court to make the final decision

The trial court was not swayed by the employee’s arguments and granted a motion for summary judgment on behalf of the furniture retailer because the employee had filed suit nine months after the defendant’s alleged wrongful termination. The court deemed enforceable a clause in the employment application requiring employees to file suits “no more than six (6) months after the date of the employment action that is the subject of the claim or lawsuit” and to “waive any statutes of limitation to the contrary.”

According to the trial court, the waiver provision was “clearly brought to the attention of anybody reading the document because of the capital letters and large print” and “[did] not violate public policy.”

The Appellate Division confirmed the trial court’s ruling. However, the New Jersey Supreme Court recently agreed to hear the case, to determine whether employers may lawfully shorten, through contract provisions, the period within which workers must file discrimination and retaliation suits and other claims. The outcome of this case will have wide-ranging consequences for employees who work for companies that engage in similar contractual tactics.

Conclusions

There are two principal takeaways for New Jersey employees facing workplace problems that may require legal action:

1. Read, understand, and follow to the letter all contract or handbook provisions on procedural rights and that impose time limits on the right to sue.

2. Take your workplace concerns to an experienced employment attorney as soon as the employer has taken any adverse employment action against you.

The passage of time does not serve employees well in these cases. Failure to act quickly may be fatal to your legal rights and claims.