Introduction to employment laws in New Jersey
Overview
Hiring managers in New Jersey face the challenge of handling a dense web of employment laws and regulations to ensure workplace compliance. These laws encompass hiring practices, wages and hours, workplace safety, discrimination, and termination.
It’s important for businesses to understand these state-specific requirements to operate in New Jersey and avoid potential legal issues and penalties. This article will outline important employment laws and regulations in the Garden State.
Employing in New Jersey: Key employment laws and practices
Standard work hours
In New Jersey, standard work hours are typically defined as 40 hours per week or eight hours per day in a five-day workweek. However, some exceptions might apply depending on the nature of the job or industry sector. For instance, In some sectors such as retail or hospitality, 25 hours could be considered full-time.
Work hours are usually specified in the contract for contractual employees. However, the number of hours can fluctuate depending on the type of job or project requirements.
There is no statutory definition of standard work hours for self-employed professionals. They have the flexibility to set their own schedules based on their workload and client needs.
Minimum wage and overtime
In New Jersey, minimum wage laws play a critical role in ensuring that workers are paid fairly. The current minimum wage for private-sector employees is $15.13 per hour, and for companies with fewer than six employees, it is set at $13.73 per hour.
Overtime laws in New Jersey are governed by both the state’s Department of Labor and Workforce Development and the federal Fair Labor Standards Act (FLSA). Non-exempt employees who work more than 40 hours in a week are entitled to overtime pay at 1.5 times their regular pay rate. Certain employees, such as those in executive or managerial roles or those performing duties in certified or licensed professions like law or accounting, may not be eligible for overtime.
Insurance and benefits
Employers in New Jersey have certain obligations regarding insurance and benefits provisions for their employees: These include providing health insurance coverage and contributing to retirement savings plans like 401k.
Employers are typically required to provide health insurance options for their full-time employees. These plans should comply with state-specific regulations regarding coverage and cost-sharing. Many employers offer retirement savings plans such as 401k contributions.
Employers are also required to provide other statutory benefits such as unemployment insurance and disability insurance. The rates for these contributions can vary depending on the employee’s salary and the employer’s industry.
Benefit | Employer contribution |
Health insurance | Varies by employer, governed by regulations found in the ACA |
New Jersey mini-COBRA (New Jersey Continuation Coverage Rules) | Complementing federal COBRA, mandates the continuation of employer-sponsored health insurance coverage for involuntarily terminated individuals at employers with 19 or fewer full-time workers |
Retirement plans | Varies by employer, optional |
Unemployment insurance | Required, 1.20% – 7.00% of salaries up to $42,300 annually |
Workers’ compensation insurance | Required |
Temporary disability and family leave insurance | Required, employee contribution of 0.09% of salary up to $161,400 annually; Employer contribution rate of 0.1% to 0.75% |
Multiplier makes it easy to manage benefits for New Jersey employees.
Meal and rest periods
Like many other states, New Jersey does not have specific statutes stipulating the number of breaks or meal periods workers must take during work hours. However, like these other states, New Jersey adheres to the federal regulations outlined by the Fair Labor Standards Act (FLSA), which does not require employers to provide meal or rest breaks; if an employer chooses to do so, however, breaks less than 20 minutes must be paid.
For meal breaks, usually lasting at least 30 minutes, the employer does not need to pay the employee if they are completely free from work duties. For employees under the age of 18, no special rules apply here.
Anti-discrimination laws
Understanding anti-discrimination laws is critical for HR compliance in New Jersey. Both federal and state laws protect employees from discrimination in the workplace.
At the federal level, Title VII of the Civil Rights Act prohibits employment discrimination based on race, color, religion, sex, and national origin. The Americans with Disabilities Act (ADA) protects individuals with disabilities, while the Age Discrimination in Employment Act (ADEA) safeguards individuals aged 40 and above.
New Jersey goes beyond federal protections through its Law Against Discrimination (LAD). In addition to covering the federally protected classes, LAD prohibits discrimination based on marital status, domestic partnership status, affectional or sexual orientation, gender identity or expression, military service, and genetic information.
The New Jersey Family Leave Act (NJFLA) also protects employees taking leave to care for a family member or bond with a newborn child from discrimination and retaliation.
Leave policies
New Jersey does not have a state law governing the amount and payment of vacation time; however, employers commonly decide whether to offer paid or unpaid vacation leave, as stipulated in employment contracts or collective bargaining agreements.
For sick leave, however, the New Jersey Earned Sick Leave Law mandates that employers provide one hour of paid sick leave for every 30 hours worked, up to an annual maximum of 40 hours of paid sick leave.
The state follows the federal Family and Medical Leave Act (FMLA), which offers up to 12 weeks of unpaid, job-protected leave per year for specific family and medical reasons. The New Jersey Family Leave Act provides benefits after the recovery period for up to six weeks, increasing to 12 weeks of leave in 24 months for specific employees.
New Jersey also adheres to the federal rules regarding bereavement leave, jury duty, and military leave, although details may vary based on individual employer policies.
Leave type | Details |
Vacation leave | As per employment contract |
Sick leave | Up to 40 hours per year |
FMLA | Up to 12 weeks per year |
NJFLA | Up to 12 weeks in 24 months |
Bereavement leave | As per employment contract |
Jury duty | Required, unpaid for private employers |
Military leave | As per federal laws |
Victims of domestic violence and sexual assault | Per NJ SAFE Act, unpaid leave for up to 20 days per year for any employee who has worked at least 1,000 hours in the past 12 months at a company with at least 25 employees |
Voting leave | Not required for private employers |
Easily onboard employees in New Jersey?
Termination laws
The termination process in New Jersey is governed by the principle of “employment-at-will”: Either party can terminate the employment relationship at any time without notice. There are exceptions, such as in cases of mass dismissals where the federal Worker Adjustment and Retraining Notification Act (WARN Act) requires employers to provide 60 days’ notice to affected employees.
For severance pay, there is no specific state requirement unless it is provided for in an employment contract or collective bargaining agreement. It’s common practice in New Jersey to offer one week’s pay for every year of service, but this varies and should be clearly stated in the employee’s contract.
Safety and health
Workplace safety and health regulations in New Jersey are governed by state laws as well as federal regulations under the Occupational Safety and Health Act (OSHA). These laws require employers to provide a safe working environment free from recognized hazards that could cause physical harm or death.
Employers should implement safety training programs, conduct regular worksite inspections to identify hazards, ensure workers have access to safety equipment, and establish procedures for reporting injuries and illnesses.
Taxes in New Jersey
Taxes in New Jersey include both federal and state obligations for employers and employees. On the employer side, payroll contributions range from Unemployment Insurance, Disability Insurance and Family Leave, and FICA Social Security.
Employees also contribute to taxes, with contributions including New Unemployment Insurance, Family Leave Insurance, and FICA Social Security.
Income tax rates differ for single taxpayers and those filing jointly.
| Tax type | Employer contribution | Employee contribution |
| Unemployment insurance | 1.20% – 7.00% | 0.425% |
| Disability insurance and family leave | 0.09% | 0.1% – 0.75% |
| FICA Social Security | 6.2% | 6.2% |
| FICA Medicare | 1.45% | 1.45% |
| State income tax | NA | 1.4% – 10.75% |
| Federal income tax | NA | varies |
Managing New Jersey employees with an Employer of Record (EOR)
Employing in New Jersey can be a complex process due to the multitude of employment and labor laws at both the state and federal levels.
This is where Multiplier can make a significant difference.
Multiplier’s Employer of Record (EOR) solution simplifies the process of legally employing full-time workers in New Jersey without setting up a U.S.-based entity. Our Global Payroll Platform allows you to run payroll for local and international employees and contractors while taking care of taxes, contributions, and withholdings.
With Multiplier’s all-in-one platform, you can onboard, pay, and manage international employees and contractors from a single interface. Book a demo today.
FAQs
In New Jersey, full-time employment is typically considered to be between 30 and 40 hours per week. However, this is not defined by law and can vary depending on the industry. In some industries, 25 hours is considered a full-time week.
The state follows the federal Fair Labor Standards Act (FLSA) regarding overtime pay. Non-exempt employees are entitled to overtime pay of 1.5x their regular pay rate if they work more than 40 hours in a week.
Generally, employees are exempt from overtime if they earn more than the specified exemption threshold ($684 per week in New Jersey), perform executive or managerial duties, or work in certain certified or licensed professions.
The minimum wage for private sector employees in New Jersey is $15.13 per hour, or $13.73 for companies with fewer than six employees.
State law requires that employees be paid at least twice per month. However, some executive and supervisory roles can be paid monthly. Employees working with Multiplier receive payments twice per month in equal installments, payable in arrears.
In New Jersey, employers must provide one hour of paid sick leave for every 30 hours worked, up to an annual maximum of 40 hours. The Family and Medical Leave Act (FMLA) provides certain employees with up to 12 weeks of unpaid, job-protected leave per year for specific family and medical reasons. The New Jersey Family Leave Act provides benefits after the recovery period for up to 6 weeks, increasing to 12 weeks of leave every 24 months for certain employees.
