On October 26, 2022, the New Jersey Appellate Division in Rourke v. Herr Foods, Inc. once again confirmed that the Federal Arbitration Act (FAA) preempts the 2019 amendment to the New Jersey Law Against Discrimination (NJLAD) invalidating employment agreements that require employees to waive rights pertaining to claims of harassment, discrimination and/or retaliation. Thus, the employee was required to proceed to arbitration on his sexual harassment, sexual assault and retaliation claims.
Facts
In January 2020, Patrick Rourke entered into an employment agreement with Herr Foods. Rourke’s employment agreement contained a Mutual Arbitration Agreement (Arbitration Agreement). Specifically, the parties agreed that all disputes related to Rourke’s employment are subject to arbitration and not by a court or jury. The Arbitration Agreement unequivocally stated that “[t]he parties hereby forever waive and give up the right to have a judge or a jury decide the Covered Claims” and that the agreement was “governed by the Federal Arbitration Act (FAA) and, to the extent not inconsistent with or preempted by the FAA.” In January 2021, Rourke and Herr Foods signed a new employment agreement which contained the same provision governing the arbitration of claims. Five months later, Herr Foods terminated Rourke’s employment. Rourke thereafter filed suit alleging sexual harassment, sexual assault and retaliation in violation of the NJLAD. Herr Foods filed a motion to dismiss arguing that...
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