New Jersey Supreme Court Voids Waiver of Third-Party Liability in Employment Contracts

Michael A. Rowe

In Vitale v. Schering-Plough Corp., A-20-16 (Dec. 11, 2017), the New Jersey Supreme Court ruled that an employment contract that limits a worker’s right to sue a third party after an injury is unenforceable because it contravenes public policy.

Allied Barton Security Services (“Allied”) hired Plaintiff as a security guard. As a condition of employment, Allied required Plaintiff to sign an agreement entitled “Worker’s Comp Disclaimer” (the “Disclaimer”). Under the Disclaimer, Plaintiff released all rights he may have had against “any customer…of Allied Security to which [Plaintiff] may be assigned, arising from or related to injuries which are covered under the Workers’ Compensation statutes.” Continue reading “New Jersey Supreme Court Voids Waiver of Third-Party Liability in Employment Contracts”