Understanding Employer Record-Keeping Requirements for New Jersey Employees
As a New Jersey business owner, you are responsible for maintaining specific employee records for a defined period according to NJ employee record retention laws. Failure to do so can lead to potential investigations by the New Jersey Department of Labor (NJDOL) and its staff. To ensure your business remains compliant, consult an NJ business lawyer for advice on NJ employer record-keeping requirements.
In today’s blog, we will highlight essential NJ employer record-keeping guidelines for business owners and managers. By reading, you will understand what to incorporate into your employee information directory, including wage and hour records and I-9 verification details for your newly hired NJ employees. Keep reading below:
NJ Employer Record-Keeping Requirements
The New Jersey Department of Labor (NJDOL) is the regulatory body tasked with overseeing the welfare of NJ workers, enforcing labor laws, and providing employment-related services. It also establishes New Jersey employer record-keeping requirements for business owners and managers, which is the focus of today’s blog. With that said, here are the essential employer record-keeping categories you should be aware of:
Employee Identification: This includes their names, addresses, and dates of birth for minors.
Employee Benefits: You must also maintain records of employee benefits, including health insurance, retirement savings plans, and professional development opportunities.
Wage and Hour Records: It is essential to keep a database of all information about hours worked, overtime pay, and pay rates for your NJ workers.
I-9 Verification Details: New Jersey employers should use Form I-9 to verify the eligibility of potential staff to work in the US when onboarding NJ employees.
The New Jersey Department of Labor also specifies NJ employer record retention laws for business owners. According to the regulatory authority, employers must keep records of their workers for six years, using a system of their choice, provided the data is complete, accurate, and true.
Additional Considerations for NJ Business Owners
Independent contractor classification is crucial for NJ employers because record-keeping requirements vary between employees and independent contractors. A New Jersey business lawyer can help you understand these regulations and explain the record-keeping guidelines for each category.
New Jersey uses the ABC test to classify workers as employees or independent contractors. Under this test, a worker is assumed to be an employee unless the employer can prove all of the following conditions:
A: The individual is free from control over their performance and service delivery.
B: The service provided is different from the business’s normal operations and services.
C: The individual practices an independently established trade, business, or profession.
Under New Jersey law, employers aren’t required to maintain independent contractors’ wage and hour records or benefits because these workers manage such aspects themselves. However, the hiring entity is required to keep some records for NJ independent contractors, including contracts, payment records, and tax documents.
As we draw our discussion to a close, it's important to note that compliance with NJ employer record-keeping requirements ensures your business is prepared for audits from government agencies like the IRS and the New Jersey Department of Labor. Additionally, detailed records of employee performance and any disciplinary actions can be valuable when defending against wrongful termination claims and wage disputes.
Conclusion
It is crucial to enlist the services of a qualified NJ business lawyer for counsel on employer record-keeping best practices. Such professionals can also help classify your staff as either employees or contractors, ensuring you maintain accurate records for each. For our next article, we'll shed light on the interpretation and enforcement of contracts under New Jersey Law. Stay tuned!
Are you wondering about any of the issues mentioned above? Please email us at info@wilkinsonlawllc.com or call (732) 410-7595 for assistance.
At Wilkinson Law, we 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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