The New Jersey Division of Wage and Hour Compliance enforces New Jersey State Labor Laws regarding minimum wage, earned sick leave, methods of wage payment, laws concerning the employment of children, and the following workplace labor standards:
Minimum Wage & Overtime Wage Rate
The New Jersey State Wage and Hour Law establishes a minimum wage rate and overtime rate for all workers in New Jersey that are covered by the Act. The law requires the payment of time and one half per hour for actual hours worked in excess of 40 hours, with certain exemptions.
Earned Sick Leave
The New Jersey Earned Sick Leave Law allows employees to accrue 1 hour of earned sick leave for every 30 hours worked, up to 40 hours each year. The law permits employers to create policies that provide additional leave time. There is no minimum number of employees that an employer must have in order for its employees to be entitled to earned sick leave under the Earned Sick Leave Law. The Earned Sick Leave Law makes no distinction for coverage between part-time or seasonal employees and full-time employees.
The New Jersey Family Leave Act permits leave to be taken for the care of a newly born or adopted child, as long as leave begins within one year of the date the child is born or placed with the employee or, the care of a parent, child under 18, spouse, or civil union partner who has a serious health condition requiring in-patient care, continuing medical treatment or medical supervision. The Family Leave Act considers parents to be: in-laws, step-parents, foster parents, adoptive parents or others having a parent-child relationship with an employee. Read more about the family leave act.
Unpaid or Withheld Wages
The New Jersey State Wage Payment Law stipulates the time, manner and mode of payment, and prohibits the withholding of wages for illegal deductions, such as breakage, spillage and cash register shortages.
The New Jersey Wage Payment Law and Selected Labor Laws enforce separate benefit packages which the employer has agreed to provide, such as payment of holidays, vacation and personal days, and reimbursement of certain expenses.
The New Jersey Earned Sick Leave Law stipulates the method by which employers are to establish a paid sick leave policy. The law permits employers to create policies that provide additional leave time.
Most businesses (except for sole proprietorships and single member LLCs with no employees) need to pay into Worker’s Compensation. Visit the Division of Workers’ Compensation or contact them at 609-292-2515 for more information. For coverage information, contact your insurance provider or the Compensation Rating and Inspection Bureau (CRIB) online or via phone at 973-622-6014.
The Temporary Disability Benefits Law protects against wage loss suffered because of inability to perform regular job duties due to illness or injury. You, the employer, are required to pay disability insurance taxes and to give the Division of Temporary Disability Insurance certain information about your employees when they file claims for disability benefits. Employers may select coverage under the state plan or a private plan.
Health or Life Insurance
Employers are not required under state law to provide health or life insurance. However, it is still highly advised that you do so.
Small businesses interested in obtaining health insurance plans for their employees have several state resources available to determine how to purchase health insurance. The Department of Banking & Insurance has developed a buyer's guide, which explains the basic rules governing the purchase of health coverage by small employers in New Jersey. The Buyer’s Guide includes frequently asked questions along with responses to the questions. The department also offers information on Individual Health Coverage (IHC) and Small Employer Health (SEH).The state's health insurance marketplace is also available to employees searching for health insurance coverage.
Employers with 20 or more employees, who offer health benefits to their employees, must also offer continuation of coverage under federal law, commonly referred to as “COBRA.” State continuation of coverage is available to employees of small business employers (2-19 employees) who are not subject to COBRA. Pursuant to New Jersey law (N.J.S.A. 17B: 27A-27), small business employers must offer employees the option to continue their group health coverage when an employee is terminated, goes to part-time status, or ends employment.
You should consider having employer liability insurance. Other types of insurance you likely want to ask your insurance agent about include: temporary disability, fire, flood, automobile liability, and automobile physical damage and collision.
Benefits are payable to workers who lose their jobs or who are working less than full-time because of a lack of full-time work and who meet the eligibility requirements. As an employer, you are required to have unemployment insurance. Visit the Division of Unemployment Insurance for specific details.
Required Workplace Notices
To ensure that employees know their rights, employers are required to post several workplace-related posters at their job site. The New Jersey Department of Labor and Workforce Development has a list of the posters on its website. Other agencies may have additional requirements that you should be informed of when you register with them.
The New Jersey Child Labor Law and Regulations specify the hours of work for minors, the type of occupations permitted to be performed, and the issuance of proper employment certificates for all minors under 18 years of age.
The New Jersey Prevailing Wage Act stipulates the payment of prevailing wage rates for workers on construction projects that are subsidized by public funds, and establishes a fair bidding mechanism for both union and non-union workers.
Construction Industry Independent Contractor Act
The Construction Industry Independent Contractor Act concerns the improper classification of employees as independent contractors in the construction industry.
State Building Service Contracts
The State Building Service Contracts Act stipulates the payment of federal wage and benefit rates for workers performing "building services" for properties or premises owned or leased by the State.
The New Jersey Crew Leader Registration Act and Selected Farm Labor Laws require the registration of crew leaders, and outlines minimum wage and wage payment standards, and authorizes the investigation and site inspection of migrant farm labor camps, drinking water and toilet facilities, contractors, growers and food processors operating in the State of New Jersey.
The New Jersey Apparel Registration Act requires the registration of anyone engaged in manufacturing or contracting in the apparel or embroidery industries in New Jersey as well as any person outside the State who contracts to perform work in the State of New Jersey.
Mandatory Overtime Restrictions (applies only to health care workers)
The New Jersey State Wage and Hour Law stipulates the conditions under which health care facilities may require certain hourly employees to work overtime.
The New Jersey Industrial Homework Law and Regulations require the issuing of licenses, permits and certificates for employers and home-based businesses involved in the manufacturing, altering, finishing and distribution of certain articles, materials and goods. The manufacturing of apparel in the home by a home worker performing work for an apparel manufacturer or contractor is prohibited.
The New Jersey State Wage and Hour Law authorizes the employment of individuals with disabilities by charitable organizations or institutions at a rate less than the minimum wage, and requires the issuing of special permits detailing the duration, type of work performed and the payment of commensurate wages.