New Jersey Appellate Division Addresses the Statute of Limitations Accrual Date in a Constructive Discharge Claim Brought Under the NJLAD and CEPA

This appeal involved the analysis of the accrual date in the context of a constructive discharge claim brought under the New Jersey Law Against Discrimination (LAD) and the Contentious Employee Protection Act (CEPA). The trial court held the “critical date” for the accrual of claims brought under LAD and CEPA was the start of the plaintiff’s workplace leave period, rather than the date said leave ended. The Appellate Division affirmed the dismissal, finding the plaintiff’s claims were time barred. 

The plaintiff filed suit two years and ten months after taking a workplace leave, asserting a claim of constructive discharge in violation of LAD and CEPA. The trial court dismissed the complaint as barred by the applicable statute of limitations. On appeal, the plaintiff argued the cause of action did not accrue until the date the leave ended, rather than when it began. The Appellate Division emphasized the two-year statute of limitations for LAD claims and the one-year statute of limitations for CEPA claims, holding that “[t]he critical date of accrual is the date on which the plaintiff felt compelled to stop working.” 

In light of this decision, defense counsel should be cognizant of the triggering event pled in a complaint for purposes of asserting statute of limitations-based defenses. 

_{Case Law Alerts, 2nd Quarter, April 2024 is prepared by Marshall Dennehey to provide information on recent developments of interest to our readers. This publication is not intended to provide legal advice for a specific situation or to create an attorney-client relationship. Copyright © 2024 Marshall Dennehey, all rights reserved. This article may not be reprinted without the express written permission of our firm.}