New Jersey Labor Law Guide
Minimum Wage
$14.13
Overtime Wage
$1.5x Regular Wages
Meal Breaks
Not mandated
Rest Breaks
Paid if 20 minutes or less
As of November 2023, the minimum wage in the state of New Jersey is $14.13 per hour for most employees. It’s scheduled to go up to $15.13 per hour from January 2024.
New Jersey law requires the minimum wage to be reviewed annually and increased by the percentage the cost of living has changed from year to year.
If the federal minimum wage is increased and becomes higher than that of New Jersey, the state’s minimum wage will automatically increase to the higher federal rate.
Overtime rules in New Jersey are governed by both federal and state labor laws.
New Jersey’s labor laws align with the federal law Fair Labor Standards Act (FLSA) regarding overtime. Therefore, non-exempt employees in New Jersey are generally subject to the federal overtime rules outlined in the FLSA.
Non-exempt employees in New Jersey are entitled to overtime pay for the hours worked beyond 40 hours in a week. The overtime pay is calculated at 1.5 times the regular hourly pay.
The state of New Jersey follows the Fair Labor Standards Act (FLSA) which does not require employers to provide meal or rest breaks. Employers are free to offer breaks that follow applicable guidelines.
Employers don’t need to pay for meal breaks if the employee is completely relieved of duties during the break. Otherwise, employer may have to pay for the meal break.
The FLSA does not require employers to give rest breaks for adult employees. If employers choose to give short rest breaks, they must pay the employees for the time.
Employers in New Jersey should understand that while federal law does not mandate breaks, they still need to comply with any collective bargaining agreements, employment contracts, or industry-specific regulations that may require breaks.
Employers with young workers must comply with the federal child labor laws which require breaks for young workers.
New Jersey has several laws related to paid leaves and time off. These laws can change, and new legislation may be enacted anytime. Here are key information about paid leaves and time off in New Jersey:
- New Jersey has a Paid Family Leave program that provides eligible employees with partial wage replacement when taking time off to bond with a newborn or newly adopted child or to care for a family member with a serious health condition.
- The New Jersey Family Leave Act allows eligible employees to take up to 12 weeks of unpaid leave in a 24-month period for certain family-related reasons, including the birth or adoption of a child or the serious health condition of a family member.
- Paid Sick Leave: New Jersey has an Earned Sick Leave law that requires employers to provide eligible employees with paid sick leave. Employees accrue sick leave based on hours worked, and they can use this leave for their own illness or the illness of a family member.
- New Jersey’s Temporary Disability Insurance program provides partial wage replacement to eligible employees who are unable to work due to non-work-related illnesses, injuries, or conditions, including pregnancy.
- Employer Policies: Many employers in New Jersey provide paid time off (PTO) or vacation days as part of their employment policies. However, there is no state law mandating such a leave.
- Collective Bargaining Agreements: For employees covered by collective bargaining agreements, the terms related to paid leave and time off may be outlined in the agreement.
The classification of employees as exempt or non-exempt in New Jersey, like most other states, is based on the Fair Labor Standards Act (FLSA).
Exempt Employees:
- Salary Basis Test: Exempt employees are typically paid on a salary basis, meaning they receive a fixed salary that is not subject to reduction based on the quality or quantity of work performed.
- Salary Level Test: Exempt employees must earn a minimum salary to qualify for exemption. The minimum salary for exemption is $684 per week.
- Duties Test: Exempt employees must perform specific job duties that fall into one of the FLSA’s exempt categories, such as executive, administrative, professional, or certain computer-related duties.
Non-Exempt Employees:
- Hourly Pay: Non-exempt employees are typically paid on an hourly basis and are entitled to overtime pay for hours worked beyond 40 hours in a workweek.
- Overtime Pay: Overtime pay for non-exempt employees is generally calculated at 1.5 times their regular rate of pay for each hour worked beyond 40 hours in a workweek.
New Jersey has its own equal pay laws in addition to the federal Equal Pay Act (EPA). The New Jersey Equal Pay Act (NJEPA) is aimed at ensuring that employees receive equal pay for substantially similar work.
- Equitable Work: The federal Equal Pay Act (EPA) prohibits wage discrimination based on sex, ensuring that employees of one sex are paid the same as employees of the opposite sex for equal work.
- Exceptions to the equal pay is allowed in cases where the differences in pay arise from seniority systems, merit systems, systems that assess earnings based on quantity or quality of production, or other factors not related to employee’s sex.
- The NJEPA prohibits employers from paying employees who are members of a protected class less than employees who are not members of that class for substantially similar work.
- In addition to the EPA and NJEPA, employers must also adhere to Title VII of the Civil Rights Act of 1964 that prohibits discrimination based on race, color, religion, and national origin.
- Protection against Retaliation: The NJEPA includes provisions protecting employees from retaliation for asserting their rights under the Act. Employers are prohibited from taking adverse employment actions against employees who exercise their rights under the NJEPA.
- Record-Keeping Requirements: Employers must maintain records of job classifications and wage rates for a period of up to five years. These records may be subject to inspection by the New Jersey Department of Labor and Workforce Development.
- Expanded Protections: The NJEPA applies not only to gender-based wage discrimination but also to wage differentials based on other protected characteristics, including race, creed, color, national origin, nationality, ancestry, age, marital status, civil union status, domestic partnership status, affectional or sexual orientation, genetic information, pregnancy, sex, gender identity or expression, disability, and atypical hereditary cellular or blood trait.
Employment laws in New Jersey cover various aspects of the hiring and firing processes. Employers in the state need to be aware of both federal and state regulations to ensure compliance. Here are key considerations related to the rules for hiring and firing employees in New Jersey:
- Employment-At-Will: State of New Jersey follows the employment-at-will principle. It allows employers to terminate employees with or without cause, and employees can resign from their positions at any time. However, there are exceptions, such as when termination is based on discriminatory or retaliatory reasons.
- Anti-Discrimination Laws: Employers in New jersey must adhere to the federal anti-discrimination laws, including Title VII of the Civil Rights Act of 1964. It prohibits discrimination based on race, color, religion, sex, or national origin. Employers must also follow federal laws such as the Americans with Disabilities Act (ADA) and the Age Discrimination in Employment Act (ADEA).
Additional protections are provided by the New Jersey Law Against Discrimination (NJLAD), which covers additional categories such as age, marital status, sexual orientation, gender identity, and more
- Background Checks: Employers conducting background checks in New Jersey need to comply with federal Fair Credit Reporting Act (FCRA), which governs the use of consumer reports for employment purposes. New Jersey has laws regulating the use of criminal history information in employment decisions.
- Work Eligibility Verification: Employers must comply with federal immigration laws, including completing Form I-9 to verify the work eligibility of employees.
- Final Paychecks: The state of New Jersey requires employers to provide employees with their final paychecks in a timely manner upon termination.
- WARN Act: The federal Worker Adjustment and Retraining Notification (WARN) Act may apply to employers with 100 or more employees, requiring them to provide advance notice of plant closings or mass layoffs.
- Retaliation Protections: Employees in New Jersey are protected from retaliation for engaging in certain protected activities, such as reporting workplace violations or filing discrimination complaints.
It is important for employers to remain well-informed about changes in employment laws and to seek guidance from legal professionals to ensure compliance with the latest regulations. It’s advisable to establish clear and meticulously documented employment policies and procedures to aid employers in complying with the labor laws.
