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.
Assignment for the Benefit of Creditors: An Alternative to Bankruptcy for Distressed Businesses
When a business reaches the point where it can no longer service its debts or otherwise resolve its liabilities, management is often faced with a difficult question: is a bankruptcy filing necessary or is there another way to perform an orderly liquidation or sale of the business assets? While Chapters 7 and 11 of the […]
Breaking Down New Jersey’s “Mansion” Tax: What Buyers and Sellers Need to Know
For many years, the New Jersey Mansion Tax has been a significant consideration in high-value real estate transactions. Recent legislative changes, however, have substantially altered how the tax operates, including who is responsible for paying it and the amount owed in certain transactions. Whether you are purchasing, selling, or investing in New Jersey real estate, […]
Estate Planning for Digital Assets Under New Jersey Law
As our personal and financial lives increasingly move online, estate planning must evolve to address a new category of property: digital assets. From email accounts and social media profiles to cryptocurrency and cloud-stored business records, these assets often carry both financial and sentimental value. Yet, without proper planning, they can become inaccessible—or even lost—upon incapacity […]
The Role of Representation and Warranty Insurance in M&A Transactions
In today’s mergers and acquisitions market, representation and warranty (R&W) insurance has become a common feature of deal negotiations. Once used primarily in larger transactions, R&W insurance is now frequently incorporated into middle-market deals as buyers and sellers look for efficient ways to allocate risk and close deals. When structured properly, R&W insurance can help […]
You Just Received a Federal Grand Jury Subpoena in New Jersey: Now What?
Receiving a federal grand jury subpoena is not something most businesses or individuals anticipate. While it can be concerning, a federal grand jury subpoena does not necessarily mean that you are being accused of wrongdoing. It does, however, mean that a federal criminal investigation is underway and that federal prosecutors believe you may possess information […]
Why Every Business Should Conduct an Annual Insurance Coverage Review
Most New Jersey business owners purchase insurance policies, file them away, and assume they are protected if a claim arises. Without a regular insurance coverage review, many companies discover gaps only after a lawsuit, cyberattack, property loss, or other significant event occurs. An annual insurance coverage review can help businesses identify potential risks, ensure their […]
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!
