New Jersey Employment Laws to Watch

New Jersey Employment Laws to Watch 2400 1600 Balance Point Team

Updated 9/24/21

Take note of the following laws that may impact your organization.

New Jersey Pay Equity

  • Affects all size employers
  • Effective July 1, 2018
  • Must compensate (pay and benefits), any employee who is a member of a “protected class” equally for “substantially similar work”

Watch our on-demand webinar: Navigating the New Jersey Pay Equity Law

New Jersey Earned Sick Leave

  • Affects all size employers
  • Effective October 29, 2018
  • Required to provide 40 hours of paid sick leave per year to all employees, including part-time employees

Watch our on-demand webinar: New Jersey’s Earned Sick Leave Law: Final Regulations

New Jersey Family Leave Act (NJFLA)

  • Affects employers with 30+ employees
  • Effective June 30, 2019
  • Required to provide job protected leave to care for a sick family member or spend time with a newborn

Read more

New Jersey Minimum Wage Increase

  • The new minimum wage law will raise the rate to $15 by 2024
    • Rise will occur in increments, increasing to $10 per hour on July 1, 2019 and to $11 on Jan. 1, 2020
    • Thereafter, the minimum wage will increase $1 every year until reaching $15 per hour in 2024
  • The minimum wage will increase at a slower rate for small businesses with less than six employees, seasonal businesses, and farm labor
  • Also included is an increase in tipped workers’ minimum wage rates and a training wage

New Jersey Medical Cannabis Act (CUMCA)

  • Affects all size employers
  • Effective July 2, 2019
  • The CUMCA does not prohibit drug testing, but it creates new procedures that must be followed when an employee or applicant has tested positive for marijuana
  • Prohibits an employer from taking any adverse employment action against a medical marijuana user if that adverse employment action is “based solely on the employee’s status” as a medical marijuana patient

Read more

New Jersey Wage Theft Act

  • Affects all size employers
  • Effective August 6, 2019
  • Employers who illegally withheld pay from workers could face penalties including prison time and revocation of employer’s license

New Jersey Salary History Ban

  • Affects all size employers
  • Effective January 1, 2020
  • Prohibits employers from inquiring about salary history from a candidate at any stage in the hiring process; asking the current or any former employer through a background or reference check, or searching public records for salary data

Read more

New Jersey Commuter Benefits Law

  • Affects employers with 20+ employees
  • Requires employers to offer pre-tax fringe commuter benefits plan to their employees. Benefits cover transit (bus, train, subway passes), parking, and ridesharing costs.
  • The plan must be active for employees to enroll in by March 1, 2020

Read more

New Jersey Family Leave Insurance (NJFLI) and Temporary Disability Insurance (TDI)

  • Affects all size employers
  • Effective July 1, 2020
    • Consecutive leave will double from 6 weeks to 12 weeks
    • Intermittent leave will increase from 42 days to 56 days

New Jersey Security and Financial Empowerment (SAFE) Act

  • Affects employers with 25+ employees
  • This Act currently provides 20 days of unpaid leave to address circumstances resulting from domestic or sexual violence
  • Effective July 1, 2020, SAFE leave will be eligible for paid benefits under TDI for victims, or FLI if a family member is a victim of domestic or sexual abuse

New Jersey “1099” Misclassification Laws

  • Affects all size employers
  • Effective upon signing January 21, 2020
  • The NJ Department of Labor and Workforce Development has been granted authority to investigate violations, subpoena payroll and tax records, interview employees and issue stop-work orders
  • Employers are required to post a notification that explains how employees can file a possible misclassification charge
  • Penalties for misclassifying workers have been raised to $250 for a first violation and up to $1,000 per misclassified employee
  • The names of employers who have violated the laws will be posted on a public website

Download our guide: Protecting Your Organization From Worker Misclassification

New Jersey Job Protection Related to COVID-19

  • Affects all size employers
  • Effective March 20, 2020
  • Prohibits an employer from terminating or taking another adverse action against an employee who requests or takes time off from work based on a likely COVID-19 diagnosis

New Jersey Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act (NJCREAMMA)

  • Affects all size employers
  • Effective August 19, 2021
  • Prohibits discrimination, refusal to hire or employ, or making any adverse employment decisions solely because an individual uses or does not use cannabis products, has tested positive for cannabinoid metabolites, or admits to having engaged in conduct permitted under this law
  • Prohibits an employer from inquiring about or basing any employment decision solely on the fact that an applicant or employee has been arrested for, charged with, or convicted of certain offenses involving marijuana or hashish

Balance Point’s Solution

Balance Point’s human capital management (HCM) technology provides the tools needed to centralize recordkeeping and create reports, while our compliance experts will guide you through adherence to these laws and more. We provide the peace of mind you need to conquer the more strategic tasks on your to-do list.

Schedule a consultation to learn more. 


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