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New Jersey Employment Laws: A Business Owner’s Guide

Nov. 29, 2024

We’ve covered a lot of ground in our business formation series for New Jersey entrepreneurs. From choosing the right business entity to forming an LLC or corporation in NJ, we've laid the foundation. Now, it's time to delve into a critical aspect of operating your business: understanding and complying with employment laws in New Jersey.

In this article, we’ll explore key New Jersey employment laws that every business owner needs to know—from minimum wage requirements to employee leave policies. By the end, you’ll understand your obligations as a New Jersey employer and how to keep your business compliant with state and federal law. At Stature Legal, we're here to assist you in navigating these complexities, ensuring your business stays on the right side of the law while you focus on growth.

New Jersey Law Against Discrimination (NJLAD)

The New Jersey Law Against Discrimination (NJLAD) is a comprehensive anti-discrimination statute that prohibits New Jersey employers from discriminating against employees or job applicants based on numerous protected characteristics—including race, religion, gender, age, disability, and more. Applicable to all public and private employers in New Jersey, regardless of size, it covers all aspects of employment: hiring, firing, promotion, compensation, and working conditions. Failure to adhere can result in significant legal consequences under both state and federal law.

New Jersey Wage and Hour Laws

As of November 2024, the minimum wage in the Garden State is $15.13 per hour. It's the responsibility of New Jersey employers to stay updated on changes to the New Jersey minimum wage to ensure wage and hour compliance and avoid penalties. Additionally, state law mandates that nonexempt workers receive overtime pay at 1.5 times their regular rate for any hours worked over 40 in a week. Proper compliance is essential to prevent penalties and lawsuits under state or federal law. Employers must accurately track employee hours, process payroll correctly, and provide appropriate overtime compensation.

Earned Sick Leave Law

New Jersey's Earned Sick Leave Law requires all employers, regardless of size, to provide eligible employees with paid sick leave. Employees earn one hour of sick leave for every 30 hours worked, up to 40 hours per year. This leave can be used for personal illness, caring for a family member, preventive medical appointments, or addressing issues related to domestic or sexual violence. For New Jersey employers, compliance with this sick leave law is crucial to avoid penalties from the New Jersey Department of Labor and Workforce Development.

Conscientious Employee Protection Act (CEPA)

The Conscientious Employee Protection Act (CEPA), known as New Jersey's "Whistleblower Act," is a vital component of New Jersey employment laws. It protects eligible employees who report or threaten to report activities they believe violate state or federal law, rules, or regulations. CEPA prohibits New Jersey employers, including public and private employers, from retaliating against employees who disclose, object to, or refuse to participate in unethical or illegal workplace practices. Protections under CEPA include safeguarding employees from termination, demotion, suspension, or harassment. Understanding and complying with this act is essential to avoid retaliation claims and legal penalties.

New Jersey Family Leave Act (NJFLA)

The New Jersey Family Leave Act (NJFLA) provides eligible employees with up to 12 weeks of unpaid, job-protected leave within a 24-month period. This New Jersey law allows employees to care for a family member with a serious health condition or bond with a new child through birth, adoption, or foster care. Unlike the federal FMLA, the NJFLA does not cover leave for the employee's own health condition. The NJFLA applies to New Jersey employers with 30 or more employees, whereas the federal FMLA applies to those with 50 or more.

Conclusion

Understanding and complying with these essential employment laws in New Jersey is crucial for every business owner. By staying informed about regulations like the NJLAD, minimum wage requirements, and the NJFLA, New Jersey employers can ensure they meet obligations under both state and federal law while fostering a positive work environment.

Stature Legal is committed to helping you understand New Jersey employment laws. Our experienced attorneys provide tailored legal services to ensure your policies, documentation, and practices are compliant and effective. Whether you need assistance with custom contracts, policy development, or compliance strategies, we're here to support you. Stay tuned for our next article in the series: "Employer Record-Keeping Requirements in New Jersey: What Business Owners Need to Know." We'll continue to provide essential information to keep your NJ business on the path to success.

Are you wondering about any of the issues mentioned above? Please email us at Info@staturelegal.law or call (732) 320-9831 for assistance.

At Stature Legal, our New Jersey business lawyers give business owners the clarity they need to fund, grow, protect, and sell their businesses. We are trustworthy business advisors keeping your business on TRACK: Trustworthy. Reliable. Available. Caring. Knowledgeable.®


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