Employers must heed NJ wage laws for migrants despite their status, high court rules

WHY IT MATTERS

New Jersey’s Supreme Court has established that employers must comply with state wage laws regardless of whether workers are in the country illegally, a decision that protects thousands of undocumented immigrants from wage theft and establishes clear legal obligations for businesses across the state. The ruling eliminates a potential loophole that allowed some New Jersey employers to withhold pay by citing federal immigration restrictions, while creating enforceable standards for compensation that apply uniformly to all workers performing labor within the state.

WHAT HAPPENED

The New Jersey Supreme Court unanimously ruled on Wednesday that employers cannot use a worker’s undocumented status as justification for withholding wages owed under state law. Chief Justice Stuart Rabner authored the 34-page decision, which reversed previous lower court rulings that had sided with an employer accused of wage violation.

The case centered on Sergio Lopez, an undocumented immigrant hired in June 2015 as a superintendent for Marmic, a residential and commercial realty company based in Newark. Lopez worked for more than three years, performing duties that required between 37 and 60 hours weekly across two company-managed buildings. He was initially promised $400 per week.

When company owner Mike Ruane discovered that Lopez had used an invalid Social Security number during the hiring process, he stopped paying the agreed wage. Instead, Ruane offered Lopez rent-free housing in a basement apartment, claiming that paying an undocumented worker would violate federal law. Lopez filed a wage complaint with the New Jersey Department of Labor in 2018 and was subsequently fired in December of that year. He sued Marmic in September 2019.

The trial court initially dismissed Lopez’s claims, ruling that his credibility was compromised due to falsifying information on his job application. An appellate panel upheld this decision, arguing that no valid employee-employer relationship could exist given Lopez’s undocumented status. The state Supreme Court reversed both decisions.

“If an employer hires an undocumented worker in violation of federal law, the employer is required to compensate the person in a manner consistent with state law for work they actually perform,” Chief Justice Rabner wrote in the decision.

BY THE NUMBERS

Lopez worked without pay for more than three years, from June 2015 through December 2018. During this period, he performed work totaling between 37 and 60 hours per week. The agreed-upon wage was $400 weekly before the withholding began. The state Department of Labor initially fined Ruane $750 following Lopez’s 2018 wage complaint, though the penalty was later settled for $250. The case decision spans 34 pages and represents a unanimous ruling from all justices on New Jersey’s highest court. The case was remanded to trial court to calculate total damages owed to Lopez based on applicable minimum wage rates and the hours he actually worked.

ZOOM OUT

New Jersey’s decision aligns with a broader national pattern in which state courts have increasingly enforced labor protections for undocumented workers despite federal immigration restrictions. The ruling applies New Jersey’s Wage and Hour Law and Wage Payment Law without exception, establishing that state labor standards supersede federal immigration enforcement concerns in employment contexts.

Several other states have reached similar conclusions through litigation or legislation. The distinction between federal immigration authority and state labor regulation has become a recurring legal question as workers’ advocates argue that wage theft represents a separate violation distinct from immigration status.

New Jersey’s approach reflects the state’s established position as a jurisdiction with robust worker protections. The decision creates predictability for employers and workers alike by eliminating the argument that immigration status permits wage withholding under state law.

WHAT’S NEXT

The case returns to trial court, where the judge will calculate the total damages owed to Lopez. This calculation will involve determining applicable minimum wage rates for the relevant time period and multiplying those rates by documented hours worked. Potential penalties for wage violations may also be assessed against Marmic under New Jersey’s wage and hour statutes.

The ruling establishes binding precedent for all New Jersey employers and lower courts. Businesses must now structure payroll practices with the understanding that undocumented worker status does not exempt them from minimum wage and wage payment requirements. The decision may prompt increased wage complaints filed by undocumented workers who previously believed their status prevented them from pursuing legal remedies.

Source: New Jersey Monitor