Employment Law Alert

Employment Law Alert

News and Updates on Employment Law

Category Archives: Reductions in Force (RIF)

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New Jersey Court Finds Violation of Computer Related Offenses Act and Other Unlawful Conduct, Ordering Disgorgement of Profits, Attorneys’ Fees and Punitive Damages

Posted in Reductions in Force (RIF)
In B&H Securities, Inc. v. Duane Pinkey et al., the New Jersey Superior Court found that former employees taking computer files from - and using the files to unfairly compete with - their employer violated the Computer Related Offenses Act, N.J.S.A. 2A:38A-1 et seq. ("CROA"), and breached other common law and contractual obligations. The Court awarded actual damages, based on plaintiff B&H's lost profits of $737,087.00, as well as punitive damages of $100,000 and attorneys' fees under the … Continue Reading

NJ WARN Act May Apply to Parent and Affiliated Companies

Posted in Reductions in Force (RIF)
The Millville Dallas Airmotive Plant Job Loss Notification Act (the "New Jersey WARN Act"), may apply not only to the direct employer, but also to parent and affiliated companies if certain factors are present. In DeRosa v. Accredited Home Lenders, Inc., et al., the New Jersey Appellate Division concluded that, "in determining single-employer status under the New Jersey WARN Act, [] courts should apply the five-factor test" applicable to its federal counterpart, the Worker Adjustment and Retraining Notification Act of 1988 (the federal WARN Act). Those factors, set forth at 20 C.F.R. 639.3(a)(2) are:"(i) common ownership, (ii) common directors and/or officers, (iii) de facto exercise of control, (iv) unity of personnel policies emanating from a common source, and (v) the dependency of operations." The appellate court left open the possibility that other tests may also apply, such as the common law standard for piercing the corporate veil and the integrated enterprise or integrated employer tests… Continue Reading
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