Q: An applicant signs an employment application
which provides, in large capitalized type placed right above the signature line,
that by signing the application he is agreeing that any claims against the
employer must be brought within 6 months of the action
that is the subject of the claim and agreeing to waive any statute of
limitations to the contrary. The applicant is hired. Three years later, he is
promoted to a different position after signing a new application which does not
contain this language. He is later terminated as part of a company-wide layoff.
Is the employee’s suit for discrimination, brought 9 months after termination, time-barred?
*Surprisingly, the New
Jersey trial court
The Appellate Division also noted that a novation is never presumed. There must be a clear and definite intention expressed in the new contract that its purpose is to supersede and eliminate a prior contract. Here, the second employment application contained no such language. The initial application was for a new hire, specifying certain terms of employment if hired, including at-will status and the shortened limitation period. The second application was merely a means of obtaining further information from the employee relevant to the new position to which he was being promoted.
This pro-employer decision (not the norm for New Jersey's pro-employee court) means that New Jersey employers may now have an effective, legal means of shortening the statute of limitations on employment claims!
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