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.
Special purpose acquisition companies (better known as SPACs) appear to be making a comeback. SPAC offerings for 2025 have already nearly surpassed last year’s totals, with additional transactions in the pipeline. SPACs last experienced a boom between 2020–2021, with approximately 600 U.S. companies raising a record $163 billion in 2021. Notable companies that went public […]
Short Form Merger: Streamlining the Process for Businesses
Merging two companies is a complex legal and business transaction. A short form merger, in which an acquiring company merges with a subsidiary corporation, offers a more streamlined process that involves important corporate governance considerations. A short form merger, in which an acquiring company merges with a subsidiary corporation, offers a more streamlined process. However, […]
Tariff Response Options for Small Businesses Facing Financial Distress
The Trump Administration’s new tariffs are having an oversized impact on small businesses, which already tend to operate on razor thin margins. Many businesses have been forced to raise prices, find new suppliers, lay off staff, and delay growth plans. For businesses facing even more dire financial circumstances, there are additional tariff response options, including […]
Common Causes of Partnership Disputes and How to Resolve Them
Business partnerships, much like marriages, function exceptionally well when partners are aligned but can become challenging when disagreements arise. Partnership disputes often stem from conflicts over business strategy, financial management, and unclear role definitions among partners. Understanding Business Partnership Conflicts Partnership conflicts place significant stress on businesses, making proactive measures essential. Partnerships should establish detailed […]
Businesses Are Facing Financial Headwinds—A Practical Guide
*** The original article was featured on Bloomberg Tax, April 28, 2025 — As a tax attorney who spends much of my time helping people and companies who have large, unresolved issues with the IRS or one or more state tax departments, it often occurs to me that the best service that I can provide […]
President Trump's Termination of Member Gwynne Wilcox
On January 28, 2025, the Trump Administration terminated Gwynne Wilcox from her position as a Member of the National Labor Relations Board (NLRB or the Board). Gwynne Wilcox, a union side lawyer for Levy Ratner, was confirmed to the Board for an original term in 2021 and confirmed again for a successive five-year term expiring […]
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!
