New Jersey State Supreme Court Limits LAD Over-Seventy Exemption
The New Jersey Law Against Discrimination (LAD) prohibits discrimination in employment on the basis of age. An exception to this is that the LAD does allow employers to refuse to hire or promote people over the age of 70. The State Supreme Court recently drew an important distinction in the rule, however, by holding that the exception does not apply to the renewal of an employee’s contract of employment.
The plaintiff, age 72, filed a discrimination claim against her employer because her employment contract was not renewed after 26 years with the company. She claims she was told that people who stay on the job for twenty five years lose their effectiveness, and she had no right to be working at her age. The matter was settled between the parties prior to the Supreme Court’s final decision, but the Court issued its opinion anyway because of its importance.
The Supreme Court held that, because there was a pre-existing employment relationship, the non-renewal of the contract constituted termination and as such was not protected under the LAD. The court limited the exception to the LAD to new hires and excluded those workers subject to contract renewal.
See Rose Nini v. Mercer Community College, et al., 2010 N.J. LEXIS 501; 109 Fair Empl. Prac. Cas. (BNA) 802.