New Jersey Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More (2024)

Pay Regulations

Employers must abide by certain protocols when it comes to paying employees, including:

• Pay Frequency: Employers must pay employees at least twice a month on designated regular paydays.
• Pay Stubs: Employers must also provide employees with a statement of deductions for each pay period.
• Final Paychecks: When an employee leaves a job, their final paycheck should be provided no later than the next regular payday, whether they quit or were terminated.

Employee Benefits

• Unemployment Insurance: Employers must contribute to the state’s unemployment insurance program.
• Workers’ Compensation: This mandatory insurance benefits employees with job-related injuries or illnesses.
• Temporary Disability and Family Leave Insurance: Employers may need to contribute to these state programs, providing partial wage replacement to employees under certain conditions.

The benefits above are mandatory for employers – failure to do so can result in hefty penalties.

While not legally required, many employers offer additional benefits like health insurance, retirement savings plans, paid vacation days, and more. Though these benefits can improve employee satisfaction and loyalty, they are at the employer’s discretion.

Prevailing Wages in New Jersey

Prevailing wages are essentially minimum pay rates set for laborers, craftsmen, and apprentices working on public works projects. These wages are determined based on collective bargaining agreements for a specific craft or trade within the locality of the public work. These wage rates vary by county and type of work.

The Act applies to public works projects funded wholly or partially with public funds. For contracts awarded directly by municipal governments, the project must be valued at $16,263 or more to fall under the Act. For other public entities, like municipal utility authorities and boards of education, the threshold is $2,000.

Contractors or subcontractors engaged in these public works projects must register with the Division of Wage and Hour Compliance under the Public Works Contractor Registration Act, or PWCRA. This registration is a prerequisite for compliance with the Prevailing Wage Act and includes an annual fee.

The New Jersey Department of Labor and Workforce Development provides current prevailing wage rates by county, with information on building trades, operators, and laborers. 

For official determinations for specific projects, contact the contracting public entity directly. Prevailing wage rates are in effect based on the date a contract is awarded and include any predetermined rate increases specified at the time of the contract award.

Hiring Practices in New Jersey

In New Jersey, employers must adhere to various regulations during the hiring process, including those related to job postings, interviews, and hiring decisions. 

When hiring, employers should ensure job postings and interviews are non-discriminatory and comply with the New Jersey Law Against Discrimination, also known as NJLAD.

Background Checks and Drug Testing

New Jersey does not have state-specific laws that differ substantially from federal background check laws and drug testing guidelines. Regardless, employers must respect applicants’ privacy rights and comply with federal laws like the Fair Credit Reporting Act when conducting background checks. 

New Jersey law allows employers to conduct drug tests, but it must be done legally and without discrimination.

Anti-Discrimination Laws and Equal Employment Opportunities

New Jersey’s robust anti-discrimination laws are encapsulated in the NJLAD, which prohibits discrimination in the workplace based on various protected characteristics. 

Employers must display and, sometimes, distribute posters and notices related to the NJLAD and other anti-discrimination and employment laws. These include the Conscientious Employee Protection Act (whistleblower protection), Gender Equality notices, Family Leave Insurance Law, and more.

Employers are encouraged to post these notices in conspicuous locations at the workplace and electronically, where feasible. 

The New Jersey Division on Civil Rights allows electronic posting of certain notices (like the NJLAD and NJFLA posters) on internal websites used by employees, and hard-copy posting in physical workplaces.

Health and Safety Standards in New Jersey

• Comprehensive Laws and Regulations: The New Jersey Division of Wage and Hour Compliance enforces state labor laws that cover health and safety standards in the Garden State.
• Child Labor Laws: Specify the type of occupations minors can perform and the hours of work, ensuring the safety and well-being of young workers.
• Public Works Contractor Registration: Contractors engaged in public works must register with the New Jersey Department of Labor and Workforce Development, adhering to safety and labor standards.
• OSHA Updates in 2024: OSHA has introduced new changes for 2024, including updated safety protocols for emerging technologies and stricter enforcement policies. These updates reflect OSHA’s commitment to adapting to new industry trends and challenges.

Reporting Unsafe Working Conditions

The New Jersey Public Employees Occupational Safety and Health (NJ PEOSH) Act ensures safety standards for public employees. Employees can report workplace hazards anonymously to their employer or NJ PEOSH authorities.

Child Labor Laws in New Jersey

Minors (anyone under 18) in New Jersey must obtain an employment certificate, also known as an A300 Combined Certification Form.

Age Restrictions

• General Work Age: Minors aged 14 and 15 have specific limitations on the type of work they can perform and the hours they can work.
• Prohibited Occupations: Minors under 18 are prohibited from working certain hazardous jobs, such as operating power-driven woodworking machinery, working with dangerous chemicals, and working near pools or billiard rooms.

Hour Limitations

• 16 and 17-Year-Olds: Can work up to 40 hours per week, with a maximum of 8 hours per day on a school week. They cannot work before 6 a.m. or after midnight on Fridays and Saturdays.
• 14 and 15-Year-Olds: They can work no more than 18 hours per week and no more than three hours per day on school days. They are not allowed to work before 7 a.m. or after 7 p.m.

Industry-Specific Regulations

New Jersey law restricts minors from engaging in particularly hazardous jobs, which include:

• Operating power-driven woodworking machinery.
• Working with dangerous chemicals.
• Being near pools or billiard rooms.
• Operating punch presses and stamping machines with over ¼ inch clearance.

Restrictions are even more stringent for younger workers between 14 and 15 years old, prohibiting them from more jobs considered hazardous or unsuitable for children.

Employee Termination and Resignation in New Jersey

New Jersey is an at-will employment state, which means barring a contract stating otherwise, employers can terminate employees without prior notice for any lawful reason. Similarly, employees can resign at any time without providing a reason.

Despite the at-will nature of employment in New Jersey, employers cannot terminate employees for discriminatory reasons (based on race, gender, age, sexual orientation, disability, or other protected characteristics) or whistleblowing (refusing to participate in illegal activities or reporting workplace violations).

It’s recommended that employers maintain clear records of performance issues, warnings, and performance improvement plans. This documentation can be crucial if the termination is later challenged. Although not legally required, documenting the termination meeting is also beneficial.

Employers should also regularly review employee handbooks and company policies to ensure they are updated with all relevant grounds for termination.

Severance Pay and Notice Requirements

Generally, New Jersey law does not require employers to pay severance to terminated employees. However, if the employer has promised severance in an employment agreement or company policy, they must honor it.

The New Jersey Mini-WARN Act requires larger employers with 100 or more employees nationwide to notify employees before a mass layoff, plant closing, or reduction in force. This requirement has been expanded to include mandatory severance pay to employees terminated in a qualifying layoff, even if the employer provides timely notice. 

The severance is calculated as one week of pay for each year of service, and if a 90-day notice is not given, an additional four weeks of severance is required​​​​.

Notice of Employee Resignation

Employees are not required to provide notice of resignation in New Jersey, but it’s often considered a professional courtesy. Employers must provide the final paycheck, including any accrued benefits, by the next regular payday following the employee’s resignation.

Right-to-Work Laws

New Jersey does not have specific right-to-work laws. Right-to-work laws typically refer to state laws that govern whether workers can be required to join a union to keep their jobs.

Unemployment Benefits in New Jersey

To qualify for unemployment benefits in New Jersey, you must meet certain criteria:

• Monetary Eligibility: This is determined based on your earnings during a specific base period, typically the first four of the last five completed calendar quarters before your claim.
• Non-Monetary Eligibility: You must have lost your job for reasons beyond your control, such as downsizing. You might not be eligible if you were terminated for misconduct or poor performance, or if you voluntarily quit your job without good cause.
• Availability for Work: You must be available for and actively seeking work while receiving unemployment benefits.

Application Process

To apply for unemployment benefits in New Jersey:

1. Gather Required Information: Before starting your application, ensure you have your Social Security number, Alien Registration Number (if applicable), New Jersey driver’s license or state ID number, employment history for the last 18 months, and any pension or severance pay details.
2. File Your Claim: You can apply for unemployment benefits online through the Division of Unemployment Insurance’s benefits portal or by phone. Phone numbers vary based on your location in New Jersey; North New Jersey: 1-201-601-4100, Central New Jersey:  1-732-761-2020, South New Jersey:  1-856-507-2340, Out-of-state claims:  1-888-795-6672.
3. Certify for Weekly Benefits: After filing your initial claim, you must certify your eligibility weekly online or by phone. This includes reporting any income earned during the week, confirming that you are available, and looking for work.
4. Benefit Determination: If eligible, you will receive a notice detailing your benefit amount and duration. The maximum duration for receiving unemployment benefits in New Jersey is 26 weeks.

Resources for Employers

Employers play a significant role in unemployment benefits since they fund the unemployment insurance program through taxes and are often required to provide information regarding the reason for an employee’s separation. 

Employers may also be involved in the appeals process if a former employee contests their eligibility for benefits. You can contact the New Jersey Department of Labor and Workforce Development for further assistance.

Penalties for Noncompliance in New Jersey

• Minimum Wage Violations: Employers who violate minimum wage regulations can be fined between $100 and $1,000. They might also face disorderly person charges. The Commissioner can impose administrative penalties of up to $250 for a first violation and up to $500 for subsequent violations, along with an administrative fee of 10% to 25% of any employee payments owed.
• Overtime Violations: For willful violations of overtime regulations, employers can face fines ranging from $100 to $1,000, imprisonment for 10 to 90 days, or both.
• Child Labor Laws: Penalties for violations include up to $250 for a first violation, up to $1,000 for a second violation, and up to $2,500 for subsequent violations.
• Unemployment Compensation Law: Employers failing to comply with the unemployment law changes will face higher penalties, increasing from $100 per day to $500 per day or 25% of the amount fraudulently withheld, whichever is greater.

Enforcement and Reporting of Violations

The New Jersey Division of Wage and Hour Compliance enforces state labor laws, including investigating and processing wage and hour violation claims. Employers and employees can file complaints regarding violations of New Jersey labor laws, and the division conducts investigations to ensure compliance.

Employees who believe their rights have been violated can file a wage complaint with the Division of Wage and Hour Compliance. Upon receiving a complaint, the division investigates to determine the claim’s validity and ensure compliance with the relevant labor laws.

Other Essential Information About Labor Laws in New Jersey

Additional State-Specific Labor Laws

• Family Leave Insurance: New Jersey offers family leave insurance which provides employees with time off to care for a newborn or a sick family member. This is different from the FMLA and provides additional protections and benefits.
• Safe Act: The New Jersey Security and Financial Empowerment Act or SAFE Act provides unpaid leave for employees who are victims of domestic violence or sexual assault, or whose family members are victims, for medical attention, legal services, or other related activities.

Labor Unions and Collective Bargaining Laws

• Public Sector Employees: The New Jersey Employer-Employee Relations Act governs collective bargaining for state and local government employees. It provides guidelines for the formation and operation of employee unions, the process for collective bargaining, and dispute resolution.
• Private Sector Employees: For private sector employees, collective bargaining rights are primarily governed by federal laws such as the National Labor Relations Act, also known as the NLRA. The NLRA grants employees the right to organize, join labor unions, and bargain collectively with their employers over wages, hours, and other terms and conditions of employment.
• Union Security Agreements: New Jersey permits union security agreements, which may require all members of a bargaining unit to join the union or at least pay union dues as a condition of employment. However, such agreements are subject to the provisions of the NLRA and other relevant federal laws.
• Strikes and Lockouts: The laws governing strikes and lockouts differ for public and private sector employees. Public sector strikes are generally illegal in New Jersey, while private sector employees’ right to strike is protected under the NLRA, subject to certain limitations and requirements.
• Collective Bargaining for Agricultural Workers: In New Jersey, agricultural workers have the right to organize and engage in collective bargaining, a right not universally granted in all states.

The Bottom Line on New Jersey Labor Laws

Our look at New Jersey labor laws highlights several important areas that employers and employees must understand to ensure a compliant and safe work environment.