The New Jersey Division on Civil Rights (DCR) issued guidance in May 2024 regarding the applicability of the New Jersey Law Against Discrimination (LAD) to remote employees working outside New Jersey for a New Jersey employer. Since the pandemic, many companies have allowed their employees to work remotely, some even full time. This flexibility has resulted in some employees moving across state lines and has provided flexibility for employers to hire employees in other states. As such, questions have arisen as to which state’s laws apply to out-of-state remote employees.
The DCR confirmed in its guidance that the LAD applies “broadly to workers who are employed by a New Jersey company, even if they work remotely in another state.” Drawing from the expansive language of the LAD, the guidance states: “[w]hether an employee working for a New Jersey employer lives in New Jersey, commutes to work from another state, or works remotely from outside New Jersey, the LAD protects the right to a workplace free from discrimination and bias-based harassment.”
The DCR cited two supportive cases addressing the topic, Calabotta v. Phibro Animal Health Corp. and Schulman v. Zoetis, which similarly concluded that the LAD extends to employees employed by a New Jersey company even if they physically work out of state. In Calabotta, the court allowed an Illinois-based employee, who worked for an Illinois subsidiary of a New Jersey employer, to bring a claim under the LAD when he was not considered for a promotion to a position in New Jersey. In Schulman, the plaintiff worked in New Hampshire for the entirety of her employment, and the court rejected the New Jersey employer’s motion to dismiss, which argued that New Hampshire law, not the LAD should apply. The court in Schulman also noted that the New Jersey Conscientious Employee Protection Act would similarly extend to employees of New Jersey employers working out of state.
Notably, the DCR cautioned that while the LAD provides broad protections, it does not necessarily extend to employees working in New Jersey who are employed by an out-of-state company.
Accordingly, New Jersey employers should extend all LAD protections to its out-of-state remote employees, including providing any and all required postings and/or notices under New Jersey law.
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