All Updates

Businesses in New Jersey must comply with rules and regulations, but under a new law that takes effect on June 19th, 2023, state agencies can suspend enforcement of penalties on certain first-time violations at their discretion. Penalties may be suspended only if the first-time violation doesn’t impact public welfare, cause employees to lose income or benefits, or present the risk of environmental harm. The temporary waiver provided under this new law is available to businesses with 50 or fewer full-time employees and subject to several important exceptions, including:

1. Violations of a criminal nature
2. Violations that were intentional or knowing acts
3. Violations that are grounds for the suspension or revocation of the owner’s authority to operate the business
4. Violations that are grounds for the business to be disqualified from bidding for State contracts
5. Violations of any State employment or labor-related law
6. Violations that are grounds for the issuance of a stop-work order
7. Violations of federal law that require the State to impose a penalty

If none of these apply to the first-time violation, agencies have the discretion to give the cited business up to 60 days to “cure,” or resolve, the violation. Failure to cure or resolve the violation will result in the business being assessed all fines and penalties available under the law upon the expiration of the cure period.

If your business has been cited for a first-time violation and you believe that it is eligible for a cure, contact the agency that issued the violation. State agencies will report annually on how they are using this discretionary authority.

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A new law is making changes to records keeping and reporting requirements for temporary help service firms and for the client companies that employ their workers. The law covers many people in temporary work assignments, with some exceptions. Two of these requirements are now in effect, as of May 7th, 2023. 

• These firms must now provide workers with a statement that contains certain required information in English as well as the language identified by the worker as their primary language.
• These firms and their clients may not retaliate, through discharge or in any other manner, against any worker who exercises their rights under this law.

The remaining key requirements take effect on August 5th, 2023:

• Temporary help service firms must be certified by the Division of Consumer Affairs within the New Jersey Department of Law and Public Safety.
• These firms must create certain records relating to their temporary workers and must keep these records for six years from their date of creation.
• These firms and their clients may not charge temporary workers for their transportation to or from a worksite, with certain exceptions.
• These firms may not obstruct their workers’ rights to seek employment elsewhere, including with their clients, and may not inhibit their clients from hiring those workers.
• Employers may not enter into a contract for temporary help services with a company that is not certified by the Division of Consumer Affairs. Employers are responsible for verifying the registration status of a temporary help service firm.

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Employers of all sizes are required by State law to provide full-time, part-time, and temporary employees with up to 40 hours of paid sick leave per year to care for themselves or a loved one. Employers can provide all 40 hours of the earned sick leave up front each year, or they can provide one hour of earned leave for every 30 hours worked.

Employees who work more than 40 hours in a week should receive 150% of their regular pay rate (time and a half) for hours worked in excess of 40.

Employers who do not comply may be subject to enforcement action.

Employers willing to hire and train dislocated workers with identifiable skills gaps can receive up to $20,000 in wage reimbursement per worker. Through the Return and Earn program, employers are reimbursed for 50% of the wages paid for regular hours worked during their training period.

Training periods can last up to six months, and wage reimbursement is capped at $20,000 per Return and Earn employee. Prospective employers must receive NJDOL approval for their training plan in order to be eligible for the wage reimbursement.

Businesses with a majority owner who identifies as LGBTQ+ can now apply for certification as a LGBTQ+-owned business. Certification can make a business eligible to participate in select set-aside or goal-based contracting initiatives offered by State agencies. Certification can also provide a competitive advantage when bidding for contracts elsewhere. Other eligibility criteria apply.

Employers with at least 100 employees have obligations under the State’s Worker Adjustment and Retraining Notification (WARN) law. As of April 10th, 2023, several new changes to the law are in effect. Among the most significant changes: 

• Employees impacted by layoffs, closures, or relocations must now have 90 days advance notice.
• Employees must be notified whenever a mass layoff impacts at least 50 workers at a given worksite.
• Part-time employees now have the same protections under the law as full-time employees. They should be counted as employees when determining an employer’s WARN obligations.
• Employers must provide discharged employees with one week of severance pay for each year of service.

Employers subject to WARN requirements are strongly encouraged to familiarize themselves with the complete changes to the law.

A recently enacted law eliminates the requirement for recognized federal S corporations to make a separate S corporation election with New Jersey. Federal S corporations will be automatically recognized as S corporations by New Jersey unless the corporation opts out. To opt out, 100% of the shareholders must consent. The entity may opt out at any time during the tax year or at any time on or before the due date or extended due date of the S corporation return.

The Division of Taxation has published a technical bulletin and FAQ document to assist companies with the resulting procedural changes.

Business owners and their investors can receive guarantees on their loans from the NJ Entrepreneur Support Program. The program provides guarantees totaling a maximum of $200,000 on investor loans advanced for working capital to businesses.

Completed applications from investors for guarantees will be considered on a first-come, first-served basis, including the ability to consider multiple guarantees per company towards the $200,000 company exposure cap.

Please schedule a consultation with an Innovation Officer by sending an email to njesp@njeda.com to determine your eligibility for the program.

Early-stage, product-based technology companies in certain industries may be eligible to have up to $500,000 in direct investments matched by the Angel Match program from the New Jersey Economic Development Authority. The funding can be used for product development, marketing, research and development, and other working capital needs.

Applications are accepted on a rolling basis. Eligible companies must be located in physical office, co-working or incubator space in New Jersey. Additional eligibility requirements apply.

New Jersey restaurants, retail stores, and personal care businesses (for example, salons and spas) that operate from a commercial location can get free consulting services from the Small Business E-commerce Support Program.

Businesses that operate from a physical commercial location in New Jersey can receive assistance in the following areas:

• Website Development
• Website Optimization
• E-commerce Platform
• Online Ordering Platform
• Online Appointment Booking Platform
• Digital Marketing Plan

Other eligibility criteria apply.