Sergio Lopez v. Marmic LLC

CourtSupreme Court of New Jersey
DecidedMarch 19, 2026
DocketA-27-24
StatusPublished

This text of Sergio Lopez v. Marmic LLC (Sergio Lopez v. Marmic LLC) is published on Counsel Stack Legal Research, covering Supreme Court of New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sergio Lopez v. Marmic LLC, (N.J. 2026).

Opinion

SYLLABUS

This syllabus is not part of the Court’s opinion. It has been prepared by the Office of the Clerk for the convenience of the reader. It has been neither reviewed nor approved by the Court and may not summarize all portions of the opinion.

Sergio Lopez v. Marmic LLC (A-27-24) (089632)

Argued October 6, 2025 -- Decided March 19, 2026

CHIEF JUSTICE RABNER, writing for a unanimous Court.

In this appeal, the Court considers whether the Federal Immigration Reform and Control Act of 1986 (IRCA), which bars employers from hiring and continuing to employ undocumented individuals who are not lawfully admitted or authorized to work in the United States, conflicts with State wage and hour laws that require employers to pay minimum wages and overtime to employees.

Defendant Mike Ruane owned defendant Marmic LLC, a realty management company. In June 2015, Ruane hired plaintiff Sergio Lopez as the superintendent of two buildings Marmic owned in Newark. When Lopez applied for the job, he provided an invalid Social Security number (SSN) on a W-4 form.

Ruane testified that he initially offered Lopez $400 per week as well as an apartment. Lopez was to “reimburse” Ruane $800 per month for the value of the basement apartment. Lopez was paid for the first two weeks. Ruane testified that after he discovered the SSN was invalid, he told Lopez he could not pay him because that would be “against the law.” Instead, Ruane offered to let Lopez live in the apartment rent-free for “perform[ing] the duties . . . we asked him to do, in return.”

Lopez continued to work and live in the apartment until December 2018. At trial, Ruane agreed that Lopez performed the tasks Lopez had testified about. Ruane did not keep track of the number of hours Lopez worked, and neither party presented any written records about his hours. Marmic maintained no records relating to Lopez’s employment. Marmic fired Lopez in December 2018. Lopez filed a complaint against Marmic and Ruane in September 2019, alleging violations of state wage laws.

The trial court dismissed Lopez’s claims with prejudice. It acknowledged the nature of the parties’ barter agreement and concluded that Lopez had not “met [his] burden of proof.” First, the court did not find Lopez “credible or believable” because Lopez had knowingly listed an invalid SSN. The court also determined that Lopez did not carry his burden because he did not “articulate[]” with “any specificity” the “total number of hours worked.” The Appellate Division affirmed the trial court’s judgment. The Court granted certification. 260 N.J. 4 (2025). 1 HELD: Federal and State law do not conflict in this regard: if an employer hires an undocumented worker in violation of federal law, the employer is required to compensate the person in a manner consistent with state law for work they actually perform. Here, neither Lopez’s immigration status nor the barter arrangement with his employer provided grounds to deny his wage claim for work already performed. The Court provides guidance about an employer’s record-keeping burden and about how to assess the admissibility of evidence of an invalid SSN in wage and hour cases.

1. New Jersey’s Wage and Hour Law (WHL) requires employers to pay the minimum wage established by law and to pay overtime for work in excess of 40 hours per week. N.J.S.A. 34:11-56a4(a), (b)(1). Under New Jersey’s Wage Payment Law (WPL), employers must “pay the full amount of wages due” an employee “at least twice” each “month, on regular paydays” fixed in advance. N.J.S.A. 34:11-4.2. Neither law excludes undocumented workers from its reach. The Department of Labor represents that it “consistently enforces the WHL and WPL without regard to immigration status.” IRCA, meanwhile, states that “[i]t is unlawful . . . to hire . . . for employment in the United States an alien knowing the alien is an unauthorized alien . . . with respect to such employment.” 8 U.S.C. § 1324a(a)(1)(A). IRCA also makes it unlawful “to continue to employ [an] alien” knowing the person “is (or has become) an unauthorized alien.” Id. at (a)(2). IRCA, however, does not expressly bar paying wages to undocumented workers for work they have already performed. Like other jurisdictions to consider the issue, the Court finds that IRCA does not preempt state workers’ compensation and labor laws. The opposite conclusion -- that IRCA preempts state wage and hour protections -- would incentivize employers to hire undocumented immigrants and pay reduced wages despite laws to the contrary. As other courts have observed, such an outcome would undermine IRCA’s primary goal to prevent the hiring of undocumented immigrants. (pp. 11-18)

2. In Hoffman Plastic Compounds, Inc. v. NLRB, the United States Supreme Court reversed an award of backpay to an undocumented immigrant, holding that such an award “runs counter to policies underlying IRCA,” “trivializes the immigration laws,” and “condones and encourages future violations.” 535 U.S. 137, 149-50 (2002). As many other courts have concluded, Hoffman Plastic applies to backpay -- payment for work that has not actually been performed -- not to payment for work that employees have already performed. Unlike an award of backpay, payment for work already completed does not itself condone or continue an IRCA violation; it instead ensures that the employer does not take advantage of the violation. (pp. 18-21)

3. The Court rejects Marmic’s contention that the parties’ barter agreement -- a rent- free apartment in exchange for labor -- established a “legally distinct . . . relationship” outside of the employee-employer relationship contemplated by the WPL and WHL. There is no broad-based exception to New Jersey’s wage and hour laws for “barter arrangements.” As a result, Marmic’s provision of a rent-free apartment in this case is not proof that it properly compensated Lopez for his labor. (pp. 22-24) 2 4. In considering Lopez’s wage claim, the trial and appellate courts faulted Lopez for not presenting adequate proof of when he worked despite the legal obligation employers have to keep appropriate records. It is not disputed that Lopez did, in fact, perform work for Marmic. The WPL and WHL therefore required that Marmic make and preserve records of Lopez’s hours and the wages paid to him. N.J.S.A. 34:11- 4.6(e) (WPL); -56a20 (WHL). In administrative wage collection cases, a rebuttable presumption applies against employers who fail to abide by that requirement. N.J.S.A. 34:11-58(d). And in Anderson v. Mt. Clemens Pottery Co., the United State Supreme Court held that if an employee seeking unpaid wages “proves that he has in fact performed work” and “produces sufficient evidence to show the amount and extent of that work as a matter of just and reasonable inference,” then the burden “shifts to the employer to come forward with evidence” to refute the employee’s claims. 328 U.S. 680, 687-88 (1946). Here, the trial court did not follow the approach outlined in section 58(d) or Mt. Clemens. The Court remands to the trial court to determine the appropriate amount of damages. Because Marmic “fail[ed] to provide sufficient employee records, . . . there shall be a rebuttable presumption that the employee worked for the employer for the period of time and for the amount of wages as alleged in the wage claim.” N.J.S.A. 34:11-58(d). The trial court should determine whether to allow additional evidence on the amount of damages and whether Marmic is entitled to a credit for the fair value of the lodging it provided. (pp. 24-28)

5.

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Sergio Lopez v. Marmic LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sergio-lopez-v-marmic-llc-nj-2026.