New Jersey Appellate Court Rules in Favor of Employee in Expenses Reimbursement Case

Recently, a New Jersey appellate court issued an important decision in favor of an employee in a case centered on an employer’s failure to reimburse certain expenses. In the case of Sands v. Board of Review, Department of Labor and Workforce Development, the court found that the employer’s failure to reimburse an employee for use of his personal vehicle was a violation of the New Jersey Wage Payment Law (NJWPL). Here, our New Jersey employment attorney provides an overview of the key points to know about the ruling.

Case Review: Sands v. Board of Review, Department of Labor and Workforce Development 

The Facts

 The case of Sands v. Board of Review, Department of Labor and Workforce Development centers around a maintenance worker at a large housing complex who claimed that his employer did not fulfill its promise to provide a golf cart for transportation around the property. As a result of this, that employee had to use his personal car to perform his duties. He was not reimbursed for automobile expenses. Citing the lack of reimbursement, he resigned from his position and filed for unemployment benefits. The employer moved to deny unemployment because he left the job willingly. In turn, the worker argued that he resigned for good cause because the lack of reimbursement was a violation of the NJWPL.

Note: The NJWPL is a statute that governs the time and mode of payment of wages to employees. It bars companies from withholding/diverting wages unless explicitly authorized by the law.

The Legal Issue 

The primary legal issue at hand was whether the employer’s failure to reimburse the employee for business expenses related to the use of his personal vehicle constitutes an illegal diversion of wages under the NJWPL. That legal issue was central to the greater controversy in this case. If the worker’s rights were violated, his resignation was with cause and he was entitled to unemployment benefits. If not, his unemployment claim could be challenged by the employer. The court had to decide if unreimbursed expenses could be considered a wrongful diversion of wages by an employer.

 The Ruling 

Upon review, the New Jersey appellate court found that unreimbursed expenses for the use of a personal vehicle, required by the employer for job duties, indeed constitute a diversion of wages under the NJWPL. The court pointed out that the employer—by not covering these costs—effectively shifted its operating expenses onto the employee.

Takeaway: In the view of the court, unreimbursed expenses may be deemed a wage and hour violation in New Jersey.

Get Help From Our New Jersey Employment Lawyer Today

At Poulos LoPiccolo PC, our New Jersey employee rights attorney invests the time, resources, and the attention to the small details to help workers get the best possible outcome. If you have any questions about a reimbursement of expenses cases, please do not hesitate to contact us today for a confidential consultation. We represent employees throughout New Jersey.

Source:

njcourts.gov/system/files/court-opinions/2024/a0413-22.pdf