New Jersey Supreme Court Takes on Preemption of CEPA Whistleblower Claims

On Wednesday, January 6, 2016, the New Jersey Supreme Court heard arguments inPuglia v. Elk Pipeline, Inc., on whether claims under the New Jersey Conscientious Employee Protection Act (“CEPA”) were preempted by the federal Labor-Management Relations Act (“LMRA”).

 

The road to the Supreme Court. The plaintiff in Puglia was a laborer on a public works project.  After discovering that he was being be paid less than what was required under the New Jersey Prevailing Wage Act (“PWA”), he made numerous complaints to management, resulting in an increase in his pay.  As the project was winding down, however,  plaintiff was laid off purportedly due to lack of work.  Plaintiff commenced an action claiming  that he was laid off in retaliation for his complaints under the PWA, pointing to the fact that he had more seniority than certain employees who were not laid off.  The plaintiff’s employment, however, was governed by a collective bargaining agreement (“CBA”) between the employer and the plaintiff’s union, which contained a complicated seniority policy that takes into consideration both objective and subjective elements to determine an employee’s seniority.

 

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