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Mashel Law Files NJ Class Action Against Crossroads Realty

Toms River, N.J., January 21, 2020 – Mashel Law filed a class action lawsuit in the New Jersey Superior Court, Ocean County against Crossroads Realty, Inc. (“Crossroads Realty”) on behalf of their clients Kenneth Freeman and Margaret Ann Cesta, and all similarly situated current and former Crossroads employees alleging that they were all subjected to the company’s unlawful pattern and practice of deducting worker’s compensation expenses from commissions or pay in violation of New Jersey’s Wage and Hour Law and the New Jersey Wage Payment Law. Crossroads Realty claims on its website that it is one of the top independently owned and operated real estate firms in New Jersey and consistently ranks in the top 200 real estate companies in the country. Crossroads Realty has over 250 sales associates working in 13 offices throughout Ocean County.

Under the class action lawsuit, the proposed class consists of all persons who work or worked for Crossroads Realty in New Jersey at any time six years prior to the filing of the Complaint through the entry of judgment in this action that were subjected to Crossroads Realty’s pattern and/or practice of unlawfully deducting worker’s compensation premiums from their commissions or wages. Crossroads Realty’s violation of law is especially egregious given that as far back as the year 2000, the New Jersey Supreme Court ruled that consistent with language contained in the New Jersey Real Estate Brokers and Salesmen Act, a real estate agent and sales person is to be considered, “employed by … a licensed real estate broker”. Re/Max of N.J. v. Wausau Ins. Cos., 162 N.J. 282, 287 (2000). This holding in the Re/Max case was and remains entirely consistent with the broad and liberal definition of the term "employee" given the New Jersey’s Worker's Compensation Act defines an employee to be, "all natural persons . . . who perform services for an employer for financial consideration." N.J.S.A. 34:15-36.

According to Stephan T. Mashel, Esquire of the law firm of Mashel Law, L.L.C., located in Morganville, New Jersey, who represents Kenneth Freeman and Margaret Ann Cesta in this class action, “Crossroads Realty knew or should have known over these past many years that by unlawfully requiring Plaintiffs and other members of the class to pay workers compensation insurance coverage premiums, it was unjustly enriching itself at the expense of, and to the detriment of, Plaintiffs and the class members they seek to represent. It is for this reason that Mr. Freeman and Ms. Cesta, together with the putative class members, seek judgment against Crossroads Realty for all statutory, compensatory, liquidated and consequential damages, or any other damages authorized by law or equity, sustained because of defendant’s unlawful conduct.”

If your employer has made unlawful deductions from your commissions or wages in violation of New Jersey’s Wage Payment Law, do not hesitate to call the attorneys at Mashel Law (732) 536-6161 or fill out the contact form on this page for immediate help. The attorneys at Mashel Law are dedicated to protecting the rights of employees.

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