What Happens In New Jersey Stays In New Jersey: Court Rejects Nationwide Class Claims Brought Under New Jersey Law

Popular culture is not kind to New Jersey. Whether the protagonists are hard-partying young adults or table-flipping housewives, the images flickering on the screen divert our attention from the fact that big businesses in key sectors of the economy make their home in the Garden State or do business there. For those companies, how New Jersey judges apply New Jersey law in the class action context greatly impacts their potential liability as employers. A recent decision from Judge Katharine Hayden of the U.S. District Court for the District of New Jersey provides a clear analysis of the scope of employer liability under New Jersey law, and can provide companies headquartered in New Jersey more comfort that the fact that they are headquartered there does not expose them to nationwide liability under state law.

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