A realty management company in New Jersey hired an individual to serve as superintendent for two buildings. When the employee applied for the position, he provided an invalid Social Security number. Initially paid in cash, his compensation arrangement changed to a rent-free apartment in exchange for his labor after the employer learned of the invalid Social Security number. The employee continued to perform superintendent duties for several years without receiving regular wages. The employer did not maintain records of the employee’s hours or wages. After being terminated, the employee filed a claim alleging violations of New Jersey’s wage and hour laws for unpaid wages and overtime.
The Superior Court, Law Division, following a bench trial, dismissed the employee’s claims with prejudice, finding that he was not credible due to his use of an invalid Social Security number and had not provided specific evidence of hours worked. The Appellate Division affirmed, concluding that the employee, as an undocumented worker, could not have an employee-employer relationship under federal law and was thus barred from relief. The court also found the barter arrangement established a relationship outside the scope of wage and hour protections.
The Supreme Court of New Jersey reversed, holding that neither the employee’s undocumented status nor the barter arrangement precluded his right to recover wages for work already performed. The Court ruled that federal immigration law does not conflict with or preempt state wage and hour laws in requiring payment for work actually performed. Employers have the statutory duty to keep records, and failure to do so results in a rebuttable presumption in favor of the employee’s claim. The Court also held that evidence of an invalid Social Security number should be carefully scrutinized for prejudice under evidence rules. The case was remanded to the trial court for a determination of damages. |
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