This article was updated on February 18, 2020.
The New Jersey Earned Sick Leave Law went into effect on October 29, 2018 requiring New Jersey businesses of all sizes to provide 40 hours of earned sick leave annually to employees statewide.
New Jersey became the tenth state to mandate one uniform statewide sick leave—joining California, Connecticut, and Maryland, among others.
Here’s What You Need To Know:
- Workers will accrue up to 40 hours of sick time at a rate of one hour for every 30 hours worked, at the same pay rate and with the same benefits that they normally earn.
- Employees will be able to use their earned sick leave beginning on the 120th day after employment.
- For employees who have started their employment prior to the effective date of the bill, accrual will begin on the bill’s effective date. Others will start accruing upon commencement of their employment.
- Employers must designate any period of 12 consecutive months (such as calendar, fiscal, or anniversary year) as a “benefit year.”
- Covers all employees except those in the construction industry under a union contract, per diem health care workers, independent contractors, and public employees who are provided with sick leave under any other New Jersey law.
- The DOL issued final regulations on January 6, 2020.
What Does This Mean For Your Business?
It’s important now more than ever to maintain accurate records documenting hours worked and earned sick leave used by employees.
The Act requires businesses to hold onto these records for a period of five years and that they be made available for inspection upon request by the Department of Labor and Workforce Development.
If you are currently relying on manual processes to track your employees’ time and attendance, you are putting your organization at risk. Using a fully-integrated system for all your human capital management needs, including time and attendance, helps to ensure your organization’s compliance.
There is much more to gain from time and attendance technology. Here are 5 benefits, beyond better record-keeping:
Increased accuracy and efficiency – A single system with a single database means employee information is entered only once and that information seamlessly flows through each stage of their life cycle – hiring, onboarding, time & attendance, payroll, etc. This reduces the chance for administrative error and eliminates the need for importing and exporting data.
A boost in productivity – An integrated system is more efficient. Not only will it increase the accuracy of your payroll, it will cut down on the time it takes to process. Armed with more time, and access to real-time analytics and reporting tools, HR and payroll administrators can take on a more strategic role.
Better scheduling – Supervisors can easily view, access, and build employee schedules to ensure adequate coverage. They can create customized attendance rules based on their criteria and assign employees to the appropriate shifts.
An improved bottom line – With time management software, hours are tracked and recorded in real time, leaving no opportunity for error. This helps cut down on costly time theft and buddy punching.
Better able to identify issues – Alerts can be set to notify managers when employees are punching in late, leaving early, etc. so they can better address concerns before they become a problem. They can also be alerted to when employees are approaching overtime.
With the current New Jersey Sick Leave Law top of mind, now is a great time to evaluate your time and attendance processes. Balance Point can help review your current policies, handle the calculation of sick time accrual, and answer any questions to help maintain your compliance. If you need help determining what solution is best for your organization, schedule a consultation with one of our Human Capital Management experts.