Waiver to Sue Third Parties in an Employment Contract is Void

Yesterday, in a precedent setting case, the Appellate Division ruled that a waiver to sue third parties in an employment contract was void as against the public policy.  The Appellate Division held that Allied, who employed the injured worker as a Security Guard, could not in its employment contract with the Security Guard waive the Security Guard’s rights to sue third parties for injuries he received while working.   Allied was in the business of placing security guards.  The plaintiff was employed by Allied and working for Schering Plough and was injured.  The plaintiff’s employment contract with Allied contained a waiver forfeiting any claims against any customer of Allied Security to which the plaintiff may have been assigned.  The court concluded that the disclaimer violated public policy “because plaintiff was asked to waive his right to sue a third party in violation of N.J.S.A. 34:15-40”.

Please click here for the full text of the opinion.