The New Jersey Supreme Court recently granted certiorari in a case in which the Appellate Division ruled that language in an employment application that shortened the statute of limitations created an enforceable contract. We previously reported on the Appellate Division's decision here.
In its decision, the Appellate Division focused on the fact that
the provision limiting the statute of limitations to six months in
the employment application was clear and conspicuous because it
appeared under a large, bold heading and the paragraph itself was
capitalized. The Appellate Division rejected the plaintiff's
argument that shortening the time in which he could file suit was
contrary to public policy. The Appellate Division cited a United
States Supreme Court case holding that a limitations period could
be shortened contractually as long as the shorter period was
reasonable. New Jersey courts have upheld this principle in other
contexts, and the Appellate Division expanded it to the employment
context in this case.
The Supreme Court's decision will determine whether employers
may use similar provisions to shorten the amount of time an
employee has to file a claim. It should be noted that the Appellate
Division's ruling only applied to state law claims.
We will continue to provide updates on this important case.
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