A New Jersey jury recently awarded a $560,000 whistleblower verdict which includes $300,000 in emotional distress damages, $60,000 in back pay and $200,000 in punitive damages against Statue Cruises, a pleasure cruise company.
Howard Flecker III was a deckhand for Statue Cruises, which provides boat tours around the Statue of Liberty and Ellis Island. He filed a lawsuit against the company in 2009 alleging that a provision of the collective bargaining agreement that covered him and approximately 40 other unionized employees was illegal under the New Jersey Wage and Hour Law. It says the overtime pay rate which is time-and-a-half the regular hourly wage begins after 40 hours, but the agreement required paying overtime only after 48 hours.
The Chief Operating Officer for Statue Cruises circulated a memo to all employees informing them that Flecker has filed the lawsuit and until the case was resolved, the company would not schedule union workers for more than 40 hours per week. The memo also stated: “For those of you who will lose a day’s pay (or more) every week, I leave it to your good judgment whether Local 333’s possible involvement in this lawsuit was in your best interests.”
As a result, Flecker’s co-workers started confronting him and urging him to drop the lawsuit. Flecker’s attorney demanded that the company retract the memo on the ground it violated Conscientious Employee Protection Act (CEPA), but the company refused to do so. Flecker added CEPA claims to his lawsuit, alleging his hours had been cut and the stress of confrontations with his co-workers forced him to resign.
In 2011, a Superior Court Judge dismissed the case on summary judgment. The Appellate Division reversed the dismissal on both claims on November 14, 2012. On remand, the overtime claim was dismissed on preemption grounds and the CEPA claims went to trial before a jury.
The jury held that reducing Flecker’s hours and inciting his co-workers to blame him for their loss of income created a hostile work environment which led to his constructive discharge.
Attorneys for Statue Cruises have indicated they will be filing an appeal.
If you have any questions about the lawsuit discussed above or would like to discuss other employment law matters, please contact me or the Scarinci Hollenbeck attorney with whom you work.
Secured transactions form the backbone of a wide range of business dealings, including business loans, mortgages, and inventory financing. Because the stakes are often high and relatively minor oversights can have drastic consequences, lenders and borrowers should thoroughly understand how to form an enforceable security agreement that protects their legal rights. What Is a Secured […]
Don’t Cash a “Paid in Full” Check Without Understanding the Legal Implications
Cashing a check marked “paid in full” can be a risky endeavor, particularly if you don’t fully understanding the legal implications. If you are owed more than the amount of the check you accept and deposit, you may waive your right to collect the full disputed amount. That is why you should consider either rejecting […]
Changes to Qualified Small Business Stock Will Benefit Startup Founders and Investors
The One Big Beautiful Bill Act of 2025 (OBBBA) significantly impacts federal taxes, credits, and deductions. A key change relating to Qualified Small Business Stock (QSBS) allows greater tax-free gains for investments in startups and other qualifying small businesses. Company founders and other investors should understand how the enhanced tax strategy works or risk missing […]
Corporate Consolidation and Antitrust Issues in Mergers
Corporate consolidation involves two or more businesses merging to become a single larger entity. The result is often a stronger and more competitive company that can better navigate today’s competitive marketplace. What Is Corporate Consolidation? Corporate consolidation closely resembles a basic merger transaction. The primary difference is that a consolidation creates an entirely new business […]
Business law plays a critical role in nearly every aspect of running a successful enterprise, from negotiating a commercial lease to drafting employee policies to fulfilling corporate disclosure obligations. Understanding what is business law and your legal obligations can help your business run smoothly and build productive relationships with clients, business partners, regulators, and others. […]
Corporate Transactions: Best Practices for Successful Deals
Corporate transactions can have significant implications for a corporation and its stakeholders. For deals to be successful, companies must act strategically to maximize value and minimize risk. It is also important to fully understand the legal and financial ramifications of corporate transactions, both in the near and long term. Understanding Corporate Transactions The term “corporate […]
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!
