Standard for entitlement to good faith defense under FLSA and NJWHL.

Blue Sky was found to have violated both the FLSA and NJWHL by failing to pay overtime wages to its mechanics. Blue Sky asserted that the New Jersey Department of Labor had conducted an audit and that the investigator had determined the mechanics were exempt. In upholding the trial court's decision to preclude presentation of this testimony and of the good faith defense, the appellate court held that the defense is only available if based upon a written administrative regulation, order, approval or interpretation. The interpretation of the law by an investigator is insufficient to support the defense as was compliant with long standing company or industry standards.

Case Law Alert - 1st Quarter 2013