Gordon Rees Scully Mansukhani Partner Jonathan A. Stuckel, Associate Delann N. Fraschetti Finch, and Associate Ashley A. Varghese obtained a favorable outcome on behalf of the firm’s hotel company client, with the New Jersey Department of Labor and Workforce Development (NJDOL) dismissing a wage claim and closing the matter for lack of jurisdiction. The Wage Collection Referee concluded that the dispute arose under a collective bargaining agreement and therefore fell within the authority of the parties’ grievance and arbitration process.
The claimant, a union-represented hotel bartender, sought additional COVID-related severance benefits and alleged that her severance payment had been improperly calculated. Although the claimant characterized the matter as a wage claim, she acknowledged during the hearing that she was a union employee and her claim concerned pay arising from a collective bargaining agreement. The claimant had previously pursued the same dispute through the union grievance process.
GRSM’s defense focused on the issue of jurisdiction. GRSM demonstrated that the severance rights at issue existed solely because of the collective bargaining agreement, which contained a mandatory grievance and arbitration procedure requiring all disputes concerning the interpretation or application of the agreement to be heard and resolved through arbitration.
During the hearing, the claimant confirmed that she was covered by the union agreement and that her claim related exclusively to COVID-related severance pay. Based on that testimony and the governing contractual provisions, GRSM argued that the NJDOL lacked authority to adjudicate the matter. The Wage Collection Referee agreed and dismissed the claim on jurisdictional grounds.
The dismissal closed the administrative proceeding in favor of GRSM’s client. This result highlights GRSM’s ability to identify and successfully litigate jurisdictional defenses, enforce collectively bargained dispute resolution procedures, and achieve efficient outcomes for employers facing wage and employment-related claims.