NJ high court backs undocumented workers in wage cases

By Heather Phillips 29/07/2026 2 min read 24 views

The New Jersey Supreme Court ruled unanimously that undocumented workers can sue for unpaid wages under state law, even when their employment violated federal immigration rules. The decision in Lopez v. Marmic LLC establishes that employers cannot evade wage obligations by citing a worker’s immigration status.

The case involved Sergio Lopez, a building superintendent hired by realty management company Marmic LLC and its principal, Mike Ruane. After learning Lopez was undocumented, the company withheld wages and instead provided a rent-free apartment as payment. Lopez filed suit, alleging violations of New Jersey’s Wage and Hour Law and Wage Payment Law, including failure to pay minimum wage and overtime.

Lopez testified he worked between 37 and 60 hours per week, performing maintenance and repairs. The defendants did not dispute the work was completed but argued Lopez failed to prove his exact hours. Neither party kept records of his time.

The trial court initially sided with the defendants, partly because of Lopez’s immigration status. The Appellate Division upheld the ruling, repeating concerns about his status. The Supreme Court rejected that reasoning, stating federal immigration law does not override New Jersey’s wage protections. Permitting employers to avoid paying undocumented workers, the justices wrote, would encourage hiring them at lower wages.

The court also rejected the argument that the rent-free apartment arrangement qualified as a “barter” outside wage laws. Under state law, anyone permitted to work by an employer is covered, regardless of compensation method. While in-kind payments like lodging can count toward wages, they do not replace the obligation to meet minimum wage and overtime standards.

The court also addressed record-keeping failures. The court ruled that once an employee demonstrates unpaid work, the employer must provide evidence of hours and wages. If they cannot, a presumption arises that the worker’s claims are correct. This shift helps employees in disputes where employers neglect proper documentation.

The ruling does not guarantee Lopez will receive damages. The case returns to the lower court to calculate what he is owed under the Supreme Court’s guidance. Still, it confirms that undocumented workers in New Jersey have the same rights to unpaid wages as other employees.

Employers received a clear directive: immigration status does not eliminate wage obligations. Barter arrangements offer no protection from lawsuits, and poor record-keeping may lead to legal consequences. The court’s opinion leaves no ambiguity—work must be compensated.