The New Jersey Supreme Court has ruled that amendments to the state’s wage and hour laws passed in 2019 cannot be applied retroactively. As a result, the provisions in the amendments — including imposition of liquidated damages, an expansion of the statute’s limitations period, and the addition of a retaliation claim — are available only to plaintiffs alleging conduct that occurred after August 6, 2019.

With its decision in Maia v. IEW Construction Group, the New Jersey Supreme Court resolved a significant conflict between federal and state courts on the retroactive application of the amendments. The unanimous decision by New Jersey’s highest court reverses a ruling by the Appellate Division that would have permitted the plaintiffs to recover unpaid wages plus other damages for the full six-year look period stretching back prior to August 2019.

The Supreme Court’s opinion provides clear guidance on the 2019 amendments and clarifies how courts are to consider whether laws are to receive retroactive effect.

As a reminder, the plaintiffs in this case represented a purported class of workers seeking to recover lost wages for pre-shift and post-shift work performed. Because the Court was reviewing a motion to dismiss, the facts alleged in the complaint were taken as true in the light most favorable to the plaintiffs. Under this framework, one of the plaintiffs began working for the defendant company in April 2019, and as of May 2019, was not being paid for pre- and post-shift work. The other plaintiff began working for the company in April 2020 and was never paid for pre- and post-shift work. Both plaintiffs were laid off in November 2021 and thereafter filed this lawsuit, alleging violations of the New Jersey Wage and Hour Law (WHL) and Wage Payment Law (WPL). They sought a range of damages, including unpaid wages, injunctive relief, liquidated damages and attorneys’ fees.

The issue on appeal concerned whether the amendments to the WHL and WPL, made effective on August 6, 2019 (referred to as “Chapter 212”), were to be applied only to conduct that occurred after the effective date or could be applied retroactively to conduct before that date. This was significant because the amendments included liquidated damages on some claims, a new retaliation cause of action and the expansion of the WHL limitations period from two to six years.

Amendments Affect ‘Duties and Liabilities’

The Court first determined that if Chapter 212 were applied to conduct before August 6, 2019, that would be giving the law retroactive effect. This is so because Chapter 212 added liquidated damages and a claim for retaliation to the WPL and WHL, and also extended the limitations period in the WHL to six years. Chapter 212 also established a defense for employers to the newly imposed liquidated damages provision. The amendments thus “affect[ed] the duties and liabilities” of the parties.

The Court then used a longstanding test to determine whether the amendments should be given retroactive effect. The first prong of the two-part test asks whether the Legislature intended for the law to be retroactive. The Court found that it did not, and therefore did not need to address the second prong of the test. The Court found nothing in the legislative text that would have indicated retroactive application; Chapter 212 was not “curative” but instead provided significant substantive rights, duties, damages, and defenses, and extended the WHL limitations period. The parties here also did not both expect retroactive application, as would have been required.

A Limited Win for Employers

In sum, any claim for damages or remedies that were added by Chapter 212 can only be based on conduct taking place on or after August 6, 2019. For conduct that occurred before that date, a plaintiff cannot take advantage of the Chapter 212 amendments.

While employers will welcome this opinion, its ultimate effect is limited. Because the effective date of the amendments is August 6, 2019, plaintiffs will be able to avail themselves of the full six-year limitations period as of August 6, 2025, which is a little over a year away.

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