A coalition of New Jersey business groups filed a lawsuit in state court Monday seeking to overturn a new law requiring businesses to provide paid sick leave to employees who work in Trenton.
The lawsuit argues that Trenton's law, which is set to take effect on Wednesday, is unconstitutional and goes against state laws. The business groups are also seeking an injunction preventing the ordinance from taking effect this week.
The law was overwhelmingly approved by voters in a November referendum, making Trenton is one of eight municipalities in New Jersey with a local paid sick leave ordinance. The others are Jersey City, Newark, Passaic, East Orange, Paterson, Irvington and Montclair.
The coalition of business groups that filed the lawsuit in Superior Court in Mercer County to block the paid sick leave law includes the New Jersey Business and Industry Association, New Jersey State Chamber of Commerce, New Jersey Food Council, New Jersey Restaurant Association, New Jersey Retail Merchants Association and the National Federation of Independent Businesses. All of the organizations involved have offices located in Trenton and therefore would be directly impacted by the change as employers.
"It is clear that the City of Trenton does not have the legal authority to implement this ordinance," said Christopher Gibson the attorney for the associations. "Trenton's mandatory paid sick leave ordinance is vague, ambiguous, and contrary to New Jersey law and impossible to interpret, administer or implement. For these reasons the ordinance must be struck down."
Trenton officials acknowledged last week that preparations for the enactment of the new law remained underway and questions remained about enforcement. Efforts to notify affected businesses had also not been completed.
Trenton spokesman Michael Walker declined Monday to comment on the pending litigation, but said Trenton voters "demanded" that the ordinance become law and the city is preparing to enforce it.
Under Trenton's paid sick leave law, workers earn one hour of sick time for every 30 hours worked. In businesses with 10 or more employees, up to five sick days may be earned per year. For those with fewer than 10 employees, workers are eligible to earn three paid sick days in a year.
Employers that offer better benefits packages to their employees are not required to give employees more paid sick time. The sick days can be used for employees to care for themselves or members of their immediate families.
The lawsuit filed by the business groups argues that the ordinance allows the city to reach outside its given powers by forcing requirements on employers. The law as written also seeks to reach outside the city boundaries to impose the law on business owners that are not located in Trenton but have employees that work here, according to the suit.
"It's no surprise that the same business lobbyists who have fought earned sick time policies from town halls to the Statehouse would try to block the will of Trenton voters," said Analilia Mejia, executive director of NJ Working Families Alliance, which led a coalition of nonprofits to support the Trenton referendum.
"Trenton voters overwhelmingly approved its earned sick time ordinance at the ballot box, and this groundless lawsuit is a blatant attempt to subvert the democratic process," Mejia said. "We are confident that the will of the people will prevail."
Gibson said he is not aware of any other court challenges to the other local paid sick leave laws in the state.
Prior to the November referendum, local business groups had expressed concern about the law, saying that it unfairly targeted businesses that have agreements with their employees to negotiate sick time. Others feared that the law would drive business out of Trenton to neighboring towns.