NJ law protects workers who are in the country illegally, court rules

👨‍⚖️ Top court rules all workers must be paid regardless of immigration status

👨‍⚖️ Employer who hired immigrant worker now on the hook for years of unpaid labor

👨‍⚖️ Decision impacts all businesses using off-the-books employees.

The highest court in New Jersey has ruled that all employees must be paid for their work, including unauthorized immigrants hired illegally.

Under federal law, employers cannot hire unauthorized migrants. Civil penalties for businesses that break this law range from $250 to $10,000 per person hired illegally. Employers who engage in a pattern of hiring unauthorized migrants can face up to six months in prison.

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In New Jersey, state law requires employers to pay their workers overtime and at least minimum wage. Put simply, a person must be paid for their work. The state Department of Labor says it enforces the law "without regard to immigration status.”

Thursday's ruling from Chief Justice Stuart Rabner said that employers who hire unauthorized workers, in violation of federal law, must still pay those workers.

"Otherwise, certain employers would be incentivized to hire undocumented workers — which is precisely the opposite of what federal law seeks to accomplish — and pay them less than the law requires," Rabner wrote.

Newark case reveals years of unpaid labor

In June 2015, Sergio Lopez was hired in Newark as the superintendent of two buildings with commercial and residential units. His employer, Mike Ruane, agreed to pay Lopez $1,600 a month. Lopez also rented a basement apartment from Ruane for $800 a month.

However, they hit a snag two weeks into the agreement. Ruane said he could not pay Lopez because he had put a fake Social Security number on his W-4 form. Instead, they worked out an unwritten agreement with no contract or lease: Lopez would live in the apartment rent-free, utilities included, and work as the building super for no pay.

This arrangement carried on for over three years. Among several responsibilities, Lopez cleaned common areas and floors, removed snow and leaves, picked up garbage, and handled repairs for other tenants. No records were kept of his hours; Lopez said he sometimes worked 60 hours per week and other weeks worked fewer than 40 hours.

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Appeals court overturned as employer record-keeping questioned

Chief Justice Rabner's decision overturns an appellate decision that ruled against Lopez. The appellate judges said Lopez knew he was ineligible for pay under federal law; there could not be a legally recognized employer-employee relationship because Lopez was an unauthorized immigrant.

The appellate judges also said that Lopez had no records of what hours he worked or what he was owed. While there's no dispute that Lopez worked for Ruane, the judges deemed Lopez was not credible because he had lied when he gave a fake SSN to his employer.

However, Chief Justice Rabner said the lower court ignored the employer's responsibility to keep accurate records.

What the ruling means for New Jersey employers and workers

In reversing the lower court decision, the New Jersey Supreme Court has ordered that Ruane must pay Lopez damages. A lower court will decide the exact amount.

The ruling sets a precedent that New Jersey employers can't expect to avoid paying workers who are unauthorized immigrants.

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