Article
Get Back Pay As Pay Back
11/30/2015
Employment Law Monthly - November 2015
By Eliyahu S. Scheiman
Get Back Pay As Pay Back
In a recent decision, Kaye v. Rosefielde, 223 N.J. 218 (2015), the New Jersey Supreme Court clarified the availability of a significant, but underutilized, weapon in an employer's arsenal, holding that, for a breach of loyalty, an employer may be entitled to the return of an employee's compensation even without proof of economic damages.
Employers often overlook the "faithless servant doctrine" and simply assume that their only recourse in dealing with an employee's misconduct, particularly, absent economic loss, is termination. Employers would do well to remember Kaye.
