Get an overview of the New Jersey labor laws small businesses should know when hiring, and updates on employment laws that could impact your business.
Keep up to date with important changes to state and local employment laws in New Jersey.
New Jersey requires employers with 25 or more employees, who have been in business for at least two years, to enroll their eligible employees in the RetireReady NJ program or an equivalent employer-sponsored retirement plan. RetireReady NJ consists of state-sponsored IRAs funded through employee payroll deductions. Employers with 40 or more employees have to certify their exemption or enroll in the program by September 15, 2024; employers with 25 to 39 employees have to do the same by November 15, 2024.
Companies with existing qualified retirement plans, like those offered via Justworks by Empower, are exempt, but must certify their exemption with the state.
Amendments to the New Jersey’s Worker Adjustment and Retraining Notification (WARN) Act, initially introduced in early 2020, are finally set to take effect in April 2023. These updates apply to New Jersey employees of employers with 100 or more employees, and require, among other changes, mandated minimum severance and increased advance notice periods. Employers who are currently planning or may have to later consider layoffs should consult extensively with legal counsel in preparation for compliance with this state WARN law, as well as Federal WARN requirements.
Effective April 13, 2022, Jersey City has enacted a Pay Transparency Law effective April 13, 2022. Employers in Jersey City with 5 or more employees must include a salary range for new positions, promotions, or transfer opportunities. Additionally, benefits offered must also be included in all job postings.
On February 6, 2023, New Jersey Governor Phil Murphy signed into law Assembly Bill No. A1474 / S511,1 commonly known as the “Temporary Workers’ Bill of Rights”, which establishes numerous labor and employment protections for large portions of New Jersey’s temporary workers.
The new law will have significant implications for staffing agencies that place temporary workers in New Jersey employers, and the businesses that utilize such services. It offers additional compensation, benefits and protections for temporary workers, with the cost and burden of compliance placed on employers and staffing agencies that place temporary workers.
On September 9, 2022, the New Jersey Cannabis Regulatory Commission issued guidance for employers responding to suspected marijuana impairment. Employers are now recommended to establish evidence-based procedures and provide documentation of observed behaviors and physical signs of impairment using a cognitive impairment test or an ocular scan to establish reasonable suspicion. Additionally, the guidance suggests at least two individuals complete an observation report using the provided template, which can be found here.
New Jersey has expanded its notice and poster requirements. Under this expansion, employers must now provide an annual notice to employees regarding their rights under the New Jersey Family Leave Act (NJFLA) and New Jersey’s Law Against Discrimination (NJLAD). Notices must be provided to each employee once a year and can be provided via email, as a hard copy, or can be uploaded within a company’s website or intranet. If the notice is provided online, all employees must have access to the website, and employers must send a reminder annually for employees to review.
Current required physical posters can also now be posted electronically via a company’s website or intranet. Posters can be posted electronically as long as all employees have access to the website and other notices are posted there as well. Employers must also provide the notice to employees annually.
The required NJLAD poster can be found here and the required NJFLA poster is found here.
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.