New Jersey employment law overview

New Jersey has many laws that provide greater protections to employees than federal law, including pregnancy accommodation rights, a higher minimum wage, health care continuation coverage obligations for smaller employers and paid family leave insurance, but generally follows federal law with respect to topics such as overtime pay, jury duty leave and military leave. 

Select New Jersey employment requirements are summarized below to help an employer understand the range of employment laws affecting the employer-employee relationship in the state. An employer must comply with federal, state, and local law. Where there is overlap, complying with the law that offers the greatest rights or benefits to the employee will generally apply. 

Equal Employment Opportunity (EEO) and worker protections 

New Jersey employers may be required to comply with requirements related to EEO and worker protections.  

Fair employment practices 

The New Jersey Law Against Discrimination (NJLAD or LAD) prohibits discrimination and harassment in employment. Protected characteristics include: 

• Race (including hair texture, hair type, protective hairstyles and other traits historically associated with race); 
• Creed; 
• Color; 
• National origin; 
• Age; 
• Ancestry; 
• Nationality; 
• Marital, domestic partnership or civil union status; 
• Sex; 
• Pregnancy (including breastfeeding); 
• Gender identity or expression; 
• Disability; 
• Liability for military service; 
• Affectional or sexual orientation; 
• Atypical hereditary cellular or blood trait; and 
• Genetic information (including the refusal to submit to genetic testing). 

The LAD also prohibits retaliation against an employee for: 

• Filing a discrimination complaint; 
• Participating or testifying in any proceedings; or 
• Opposing any acts forbidden under the LAD. 

The LAD applies to all public and private employers, regardless of size. 

Equal pay 

It is an unlawful employment practice for an employer to pay compensation, including benefits, to employees of a class protected by the Law Against Discrimination that is less than the rate paid to employees outside the class for substantially similar work when viewed as a composite of skill, effort and responsibility. An employer may not reduce an employee’s rate of compensation in order to comply with the law. 

An employer may pay a different rate of compensation if it demonstrates that the differential is made according to a seniority system or merit system or the employer demonstrates that: 

• The differential is based on one or more legitimate, bona fide factors, such as training, education or experience, or the quantity or quality of production; 
• The factors are not based on, and do not perpetuate, a differential in compensation based on any protected characteristic; 
• Each factor is applied reasonably; 
• One or more of the factors account for the entire wage differential; and 
• The factors are job-related and based on a legitimate business necessity. 

Pay transparency 

New Jersey’s pay transparency law requires certain employers to disclose pay and benefits information in job postings and inform employees of promotion opportunities. Internal and external job postings must include: 

• The hourly wage or salary (or a range thereof); and 
• A general description of benefits and other compensation for which a hired employee would be eligible.

Salary history inquiry restrictions 

New Jersey law restricts an employer from making salary history inquiries, and provides that an employer may not: 

• Screen job applicants based on their salary history, which includes prior wages, salaries or benefits; or 
• Require that an applicant’s salary history satisfy any minimum or maximum criteria. 

An employer may: 

• Use salary history to determine the applicant’s salary, benefits and other compensation, and may verify salary history, if voluntarily disclosed; and 
• Request written authorization from an applicant to confirm salary history after an offer of employment has been made to the applicant. 

The law contains numerous exceptions. 

Employee wage disclosure rights 

The LAD permits employees to ask current or former co-workers about their compensation, among other things, for the purposes of investigating or taking legal action regarding discriminatory pay practices. In addition, employers are prohibited from retaliating against employees who request such information. 

Pregnancy accommodation 

Under the New Jersey Pregnant Worker’s Fairness Act (NJPWFA), an employer must provide reasonable accommodations for an employee who is currently pregnant, is recovering from childbirth, is breastfeeding or has a medical condition related to pregnancy, childbirth or breastfeeding. The employee does not need to establish that she is disabled by pregnancy or a pregnancy-related condition in order to receive a workplace accommodation. Examples of reasonable accommodations include: 

• Bathroom breaks; 
• Breaks to drink more water or the ability to carry a water bottle; 
• Periodic rest periods; 
• Modified job duties or work schedule; 
• A temporary transfer so that the employee can avoid strenuous or hazardous work; and 
• Assistance with manual labor; and 
• Reasonable, daily break time and a suitable location (that is private, close to the work area and not a toilet stall) for the employee to express breast milk for her infant child. 

Breastfeeding breaks 

An employer must provide reasonable break time each day and a suitable location for an employee to express breast milk for her infant child. 

Access to personnel files 

New Jersey law does not require private employers to provide employees with access to their personnel files. 

Whistleblower protections 

New Jersey’s Conscientious Employee Protection Act prohibits retaliation against an employee who: 

• Blows the whistle, or who threatens to do so, with regard to improper, deceptive, harmful or illegal conduct by his or her employer, or conduct that relates to improper patient care by a health care provider; 
• Provides information to or testifies in a government agency hearing or investigation; or 
• Objects to or refuses to participate in any activity, policy or practice that the employee reasonably believes:
  • Is a violation of law; 
  • Is harmful or deceptive; or 
  • Relates to improper patient care by a health care provider. 

Scheduling 

New Jersey does not have a scheduling law applicable to private employers. 

Recruiting and hiring 

New Jersey employers may be required to comply with requirements related to recruiting and hiring.   

Credit checks 

A New Jersey employer may obtain a job applicant’s credit report if it has notified the applicant in writing beforehand that the report may be used for employment purposes and the applicant has consented. 

Ban the Box and Fair Chance 

New Jersey’s Opportunity to Compete Act prohibits employers with 15 or more employees from making any oral or written inquiry about an applicant’s criminal record during the initial employment application process, which ends when the employer has conducted a first interview. This measure is known as a “ban the box” law. 

In addition, the Act prohibits a covered employer from publishing a job advertisement stating that the employer will not consider applicants who have been arrested or convicted of one or more crimes. 

Limited exceptions are provided for positions in law enforcement, corrections, the judiciary or emergency management. 

E-Verify 

There are no state-specific requirements for private employers related to the use of E-Verify in New Jersey. 

Wage and hour 

New Jersey employers may be required to comply with certain wage and hour requirements.   

Minimum wage 

New Jersey’s statutory minimum wage is $15.92 per hour for large employers and $15.23 per hour for small employers and seasonal employers. Certain employees are exempt from the minimum wage law, and a separate minimum wage rate exists for some employees (e.g., tipped employees). 

Overtime 

Nonexempt employees generally must be paid overtime at the rate of one and one-half times the employee’s regular hourly rate for hours worked in excess of 40 hours in any workweek. 

Meal and rest breaks 

Employees who are aged under 18 and who work five or more consecutive hours must be provided with a meal period of at least 30 minutes.   

Child labor 

Child labor laws in New Jersey restrict the occupations in which minors may be employed and the number of hours and times during which they may work. 

New Jersey has generally adopted the federal standards but also has additional standards. 

Minors who are 16 or 17 years of age are not allowed to operate or assist in the operation of dangerous machinery (e.g., punch presses, power-driven woodworking machinery) and may not perform hazardous job duties (e.g., setting up, repairing or cleaning circular or band saws, guillotine shears and shearing machines; transporting payroll cash or checks outside of the employer’s premises). Other restrictions apply. 

Minors under the age of 16 are prohibited from working in additional occupations, on top of the restrictions that apply to minors who are 16 or 17 years old. 

Generally, minors under 18 years of age may not work more than six consecutive days in any one week or more than 40 hours in any one week. 

Minors between 16 and 18 years of age may work before 6:00 a.m. or after 11:00 p.m. when school is not in session if they have written permission from their parents or legal guardian. They may work in a seasonal amusement or restaurant occupation after 11:00 p.m. and following 12:01 a.m. of the next day under certain circumstances. 

Minors under 16 years of age may not work before 7:00 a.m. or after 7:00 p.m. of any day. However, they may work in a restaurant, supermarket or other retail establishment until 9 p.m. from the last day of the school year until Labor Day if they have written permission from a parent or legal guardian. 

Minors under the age of 18 must be given a 30-minute meal period after five consecutive hours of work. 

Pay and benefits 

New Jersey employers may be required to follow certain requirements with respect to employee pay and benefits.

Wage payment methods 

Employers in New Jersey must pay the full amount of wages due to employees in cash, or with checks that can be cashed in full at banks where arrangements have been made for cashing without difficulty. The employer must pay any check cashing fees charged by the bank. 

An employer may pay wages by direct deposit or electronic paycards if certain conditions are met, including the employee providing written consent. 

Pay frequency and lag time 

Nonexempt employees must receive their full wages due at least semimonthly, on regular paydays designated in advance. 

Exempt employees must paid in full at least once each calendar month on a regularly established schedule. 

If a regular payday falls on a day when the business is closed, employees must be paid on the immediately preceding workday, unless a collective bargaining agreement provides otherwise. 

Pay deductions 

Deductions may be made from employees’ wages if required by state or federal law or court order, with the employee’s written authorization or for other permissible reasons, including but not limited to child support withholding, creditor garnishments and tax levies. 

Pay statements 

All New Jersey employers must furnish each employee with a statement of deductions made from his or her wages for each pay period in which deductions are made. 

Wage theft 

Under the New Jersey Wage Theft Act, an employer (or its successor) commits wage theft if it:

• Knowingly fails to timely pay all wages and benefits due to an employee; 
• Fails to pay the minimum wage or overtime due to an employee; or 
• Retaliates against an employee who complains to the employer, a representative of the employer or the labor commissioner or initiates legal action against the employer.

Health care continuation 

New Jersey’s health care continuation law generally mirrors the federal Consolidated Omnibus Budget Reconciliation Act (COBRA) with regard to qualifying events, timelines and premium amounts. However, the New Jersey law applies to employers with between two and 50 employees. Therefore, New Jersey employers with between 20 and 50 employees must comply with both state and federal law. 

New Jersey law differs from federal law in a number of ways, including: 

• Covering domestic partners and civil union partners; 
• Requiring coverage for medical plans only (and not dental and/or vision plans); 
• Not requiring continuation coverage for a former employee’s spouse when the employee becomes eligible for Medicare; 
• Requiring continuation coverage to be elected within 30 days; and 
• Requiring the initial premium to be paid within 30 days of the election for continuation coverage. 

Temporary disability insurance 

All employers subject to the state unemployment insurance law are required to provide temporary disability benefits (TDB) to an employee who sustains a nonwork-related sickness or injury that results in the employee’s inability to perform his or her regular job duties. TDB are paid for by a mandatory payroll tax to which both the employer and employee contribute. 

Employees may receive up to 26 weeks of TDB. The weekly benefit amount is a portion of the employee’s average weekly wage, up to a maximum amount set by the state each year. 

Time off and leaves of absence 

New Jersey employers may be required to follow certain requirements with respect to time off and leaves of absence.   

Family and medical leave 

The New Jersey Family Leave Act (NJFLA) requires employers with 15 or more employees to allow eligible employees to take an unpaid leave of absence for up to 12 weeks in a 24-month period for the following reasons: 

• The birth, adoption or foster care placement of a child; or 
• To care for a covered family member with a serious health condition. 

In addition, all employees of covered employers (i.e., employers subject to the state unemployment insurance law) are eligible for up to 12 weeks of paid family leave insurance (FLI) to bond with a newborn child, a newly adopted child or a newly placed foster child; to care for an ill family member; for reasons related to domestic or sexual violence; or to care for a family member for reasons related to a communicable disease. FLI is paid for by a mandatory payroll tax on employees only. 

Paid sick leave 

Eligible employees are entitled to take up to 40 hours of paid sick leave per year for the following reasons: 

• The employee’s or a family member’s diagnosis, care, treatment of or recovery from a mental or physical illness, injury or other adverse health condition, or need for preventive medical care; 
• Absences related to domestic or sexual violence against the employee or a family member; 
• Closure of the employee’s workplace or a child’s school or place of care due to an epidemic or other public health emergency; 
• A public health authority determines that the employee’s or a family member’s presence in the community would jeopardize the health of others; 
• To attend a child’s school-related conference or other event requested or required by a school administrator, teacher or other professional staff member responsible for the child’s education; and 
• To attend a meeting regarding a child’s care in connection with the child’s health or disability. 

Other time off requirements 

In addition to the family leave and paid sick leave laws, a New Jersey employer may also be required to comply with other leave and time off laws, including but not limited to: 

• Military leave;
• Jury duty leave;
• Emergency responder leave; and
• Domestic violence leave.

Health and safety 

New Jersey employers may be required to follow certain requirements with respect to employee health and safety.   

Occupational safety and health 

Private sector employers in New Jersey fall under the jurisdiction of federal OSHA for compliance and enforcement and must follow the appropriate Code of Federal Regulations that applies to their industry and work practices.

Drug and alcohol testing  

New Jersey does not have a law that specifically governs workplace drug and alcohol testing. Therefore, employers in the state may establish their own drug and alcohol testing policies and require employees and job applicants to submit to such tests as a condition of employment.  

Any testing program and subsequent action based on test results must be implemented in compliance with the federal ADA, the New Jersey Law Against Discrimination, collective bargaining agreements and other laws that protect workers from discrimination or violations of privacy. 

Smoke-free workplace 

The New Jersey Smoke-Free Air Act prohibits smoking, including e-cigarettes, in indoor public places and workplaces. 

Weapons in the workplace 

New Jersey law allows individuals to carry a concealed handgun in a public place if they have a valid and legal permit to carry and have proof of liability insurance. The law includes “safe carry” requirements, such as prohibitions against carrying a handgun while being under the influence of alcohol, cannabis or a controlled substance; carrying a handgun in public outside of a holster; carrying more than two firearms at one time; or engaging in unjustified display of the handgun. 

Safe driving practices 

It is against the law for anyone to talk on their cell phone or text while driving in the State of New Jersey. 

Organizational exit 

New Jersey employers may be required to follow certain requirements when employees exit the organization.   

Final pay 

If an employee is terminated, suspended as a result of a labor dispute or laid off, or if an employee resigns or leaves employment for any reason, the employer must pay the employee all wages due by the regular payday for the pay period in which the termination, suspension or cessation of employment took place. 

An employer has an additional 10 days to pay if an employee is suspended as a result of a labor dispute involving employees who make up the payroll. 

An employer may pay all wages owed to a deceased employee, upon proper demand on the employer and in the absence of actual notice of the pendency of probate proceedings, in the following order to the employee’s: 

• Surviving spouse; 
• Children age 18 and older in equal shares, or to the guardian of children under age 18; 
• Father and mother or survivor; and 
• Siblings; or 
• The person who pays the funeral expenses. 

Mass layoffs 

Under the Millville Dallas Airmotive Plant Job Loss Notification Act, an employer that has been in business for longer than three years and that employs 100 or more employees (regardless of full-time or part-time status) must provide at least 90 days’ written notice under the following circumstances: 

• An establishment is subject to a transfer of operations or a termination of operations that results, during any continuous period of not more than 30 days, in the termination of employment of 50 or more employees; or 
• An employer that conducts a mass layoff that results in the termination of employment during any 30-day period of 50 or more employees at, or reporting to, the establishment. 

Notice must be provided to: 

• Each employee to be terminated; 
• Any collective bargaining units of employees at the establishment, if applicable; 
• The chief elected official of the municipality where the establishment is located; and 
• The Commissioner of Labor and Workforce Development. 

The law requires an employer to provide one week of severance pay for every year of service. If the employer provides any employee with less than the 90 days’ notice required, it must provide that employee with an additional four weeks of pay.

AI in employment 

New Jersey does not have a law related to AI in employment applicable to private employers.