Scarinci Hollenbeck, LLC, LLCScarinci Hollenbeck, LLC, LLC

Firm Insights

NJ Supreme Court Clarifies Legal Standard for Retaliation Claims Under Law Against Discrimination LAD

Author: Scarinci Hollenbeck, LLC

Date: August 5, 2013

Key Contacts

Back

The Supreme Court of New Jersey recently issued a key decision regarding the proofs required under the state’s Law Against Discrimination (LAD). The case also addressed what is required for an award of emotional distress damages under the LAD as well as to sustain a fraud-based claim under the Conscientious Employee Protection Act (CEPA).

The case, Battaglia v. UPS, involved the demotion of Plaintiff Michael Battaglia.  As noted by the court:

“…the allegations in the complaint can be divided into three categories. The first allegation concerned plaintiff’s complaints about offensive and inappropriate sexual and gender-based comments he attributed to his supervisor…The second allegation concerned plaintiff’s complaint about improper business lunch practices and the related misuse of company credit cards by other employees. The third allegation related to a letter that plaintiff sent anonymously to the corporate Human Resources manager raising those and other complaints.

Mr. Battaglia alleged that he suffered a demotion because of his complaints.  UPS maintained that its employment decision was justified by plaintiff’s violation of company confidentiality policies, his abusive treatment of other employees, and insubordination. Battaglia’s lawsuit included retaliation claims under both the LAD and CEPA.

As to the LAD retaliation claim, the court ruled that an employee who allegedly suffers a retaliatory employment action is only required to demonstrate a “good-faith” belief that the complained-of employer conduct violates the LAD. “[W]hen an employee voices a complaint about behavior or activities in the workplace that he or she thinks are discriminatory, we do not demand … that he or she be able to prove that there was an identifiable discriminatory impact upon someone of the requisite protected class” the court concluded.

As for the future emotional distress claims under the LAD, the court found that expert testimony would be required. “[A]lthough the humiliation, embarrassment and indignity suffered by the LAD plaintiff during the events complained of is obvious, once remedied through a verdict, any claim that those effects will endure so as to support a future award must be proven by credible, competent evidence lest that verdict be the product of speculation,” Justice Helen Hoens explained.

With regard to Battaglia’s CEPA claim, the court ruled that in order to succeed on a fraud-based CEPA claim, a plaintiff must reasonably believe that the complained-of activity was occurring and was fraudulent: “That is, the statute does not protect employees whose complaints are directed to minor or trivial matters.”

The decision offers both good news and bad news for New Jersey employers. While the standard for bringing a retaliation claim under the LAD may be lower, claims of future emotional distress will require expert testimony. In addition, the court clarified that CEPA is intended to combat seriously fraudulent or criminal conduct and not more trivial matters.

If you have any questions about this case or would like to discuss the legal issues involved, please contact me, Gary Young, or the Scarinci Hollenbeck attorney with whom you work.

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Scarinci Hollenbeck, LLC, LLC

Related Posts

See all
Tariff Response Options for Small Businesses Facing Financial Distress post image

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 […]

Author: Brian D. Spector

Link to post with title - "Tariff Response Options for Small Businesses Facing Financial Distress"
Common Causes of Partnership Disputes and How to Resolve Them post image

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 […]

Author: Christopher D. Warren

Link to post with title - "Common Causes of Partnership Disputes and How to Resolve Them"
President Trump's Termination of Member Gwynne Wilcox post image

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 […]

Author: Matthew F. Mimnaugh

Link to post with title - "President Trump's Termination of Member Gwynne Wilcox"
How to Dissolve a Corporation in New Jersey: A Step-by-Step Guide post image

How to Dissolve a Corporation in New Jersey: A Step-by-Step Guide

Closing your business can be a difficult and challenging task. For corporations, the process includes formal approval of the dissolution, winding up operations, resolving tax liabilities, and filing all required paperwork. Whether you need to understand how to dissolve a corporation in New York or New Jersey, it’s imperative to take all of the proper […]

Author: Christopher D. Warren

Link to post with title - "How to Dissolve a Corporation in New Jersey: A Step-by-Step Guide"

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!

* The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!