Intro to New Jersey Labor Laws

New Jersey has issued guidance that using Artificial Intelligence (AI) in hiring and other decisions, must comply with the state’s anti-discrimination laws. The guidance further states that AI-driven bias is considered unlawful discrimination under the New Jersey Law Against Discrimination (NJ LAD).

Employers, including those using AI tools from third-party vendors, must ensure their systems do not result in discriminatory outcomes. Employers will want to review their AI-driven processes carefully to remain compliant.

Governor Phil Murphy has signed new legislation making New Jersey the next state to require pay transparency. Starting June 1, 2025, New Jersey employers with 10 or more employees must include pay ranges, benefits, and any job advancement opportunities that employees would be eligible for in the first 12 months of employment in all job postings. Additionally,  covered employers must notify current employees of promotion opportunities. Failure to comply with these requirements could result in fines. To prepare, covered employers should review current job postings, policies, and procedures with legal counsel to ensure compliance.

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.

The U.S. Court of Appeals for the Third Circuit issued a ruling, which clarifies that the New Jersey Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act (CREAMMA) does not grant individuals the right to sue employers for discriminating against them based on their cannabis use. The court determined that, although CREAMMA restricts adverse employment actions based solely on cannabis use, it does not provide a private right of action for individuals to enforce these protections. Employers should continue to comply with the law’s provisions and monitor evolving state and federal laws regarding cannabis use in the workplace.

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.