🇺🇸 NEW JERSEY STATE LAW – 2026 UPDATE

New Jersey Remote Work Laws 2026

Employer Compliance Requirements - Business-Friendly Framework

Last Updated: December 2025
Applicable Period: 2026 tax year and current employment regulations
Key Characteristic: Employers with remote workers physically located in New Jersey

New Jersey remote work laws and employment regulations guide

Table of Contents

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Overview

New Jersey is generally considered worker-protective in its approach to employment regulation. According to official state sources, New Jersey has enacted numerous employment protections that extend beyond federal requirements in several areas.

General Characteristics (As of December 2025):

According to publicly available information from the New Jersey Department of Labor and Workforce Development:

State Minimum Wage (2026):

  • Most employees: $15.92/hour (effective January 1, 2026)
  • Seasonal and small employers (fewer than 6 employees): $15.23/hour
  • Agricultural workers: $14.20/hour
  • Long-term care direct care staff: $18.92/hour
  • Tipped workers minimum cash wage: $6.05/hour (with maximum tip credit of $9.87)

Source: New Jersey Department of Labor and Workforce Development, October 1, 2025 press release
URL: https://www.nj.gov/labor/lwdhome/press/2025/20251001_Minimum_Wage.shtml

Paid Sick Leave: Required for employers of all sizes. The New Jersey Earned Sick Leave Law generally requires employers to provide earned sick leave to employees working in the state.

Source: N.J.S.A. 34:11D-1 et seq.
URL: https://www.nj.gov/labor/myworkrights/leave-benefits/sick-leave/

State Income Tax: New Jersey has a progressive state income tax system. Tax implications for remote workers may vary based on work location and employer location.

Source: New Jersey Division of Taxation
URL: https://www.nj.gov/treasury/taxation/

Meal/Rest Breaks: New Jersey does not mandate meal or rest breaks for adult employees (18 and over) under state law.

Overtime Rules: New Jersey generally follows federal Fair Labor Standards Act (FLSA) standards requiring overtime pay at 1.5 times the regular rate for hours worked over 40 in a workweek.

Workers’ Compensation: Generally required for all employers with employees. New Jersey operates under N.J.S.A. 34:15-1 et seq.

Source: New Jersey Division of Workers’ Compensation
URL: https://www.nj.gov/labor/workerscompensation/

Official State Agency Information

New Jersey Department of Labor and Workforce Development (NJDOL)

The New Jersey Department of Labor and Workforce Development administers employment laws in New Jersey.

Contact Information:

  • Main Website: https://www.nj.gov/labor/
  • General Phone: (609) 292-2323
  • Mailing Address:
    New Jersey Department of Labor and Workforce Development
    1 John Fitch Plaza, PO Box 110
    Trenton, NJ 08625-0110
  • Languages: Services available in multiple languages

Divisions and Contact Points:

⚠️ Note: This agency can provide official interpretations of state law. For legal advice on how laws apply to your specific situation, consult a licensed attorney.

Major State Employment Statutes

The following statutes are commonly referenced in employment matters. This is general information only and does not constitute legal interpretation. All statutory citations should be verified with official New Jersey sources.

Information compiled as of December 2025. Verify current law before making decisions.

1. New Jersey State Wage and Hour Law

Statutory Citation: N.J.S.A. 34:11-56a et seq.
Official Source: https://www.nj.gov/labor/wageandhour/tools-resources/laws/

General Provisions (as stated in the statute):

According to the New Jersey State Wage and Hour Law, the statute generally addresses:

  • Minimum wage requirements for covered employees
  • Overtime compensation standards
  • Wage payment requirements
  • Recordkeeping obligations for employers

Key Regulatory Authority: N.J.A.C. 12:56 (Wage and Hour Regulations)

Application to Remote Work:
According to general legal principles, wage and hour protections typically apply based on where work is physically performed. Workers performing services from a location in New Jersey would generally be subject to New Jersey wage and hour standards. However, specific applicability depends on multiple factors.

For Guidance: Contact the New Jersey Division of Wage and Hour Compliance at (609) 292-2305 or consult legal counsel for situation-specific application.

2. New Jersey Earned Sick Leave Law

Statutory Citation: N.J.S.A. 34:11D-1 et seq.
Effective Date: October 29, 2018
Official Source: https://www.nj.gov/labor/myworkrights/leave-benefits/sick-leave/

General Overview:

According to the New Jersey Department of Labor, this law generally requires employers of all sizes to provide earned sick leave to full-time, part-time, and temporary employees working in New Jersey.

Coverage typically includes (based on official guidance):

  • Accrual of one hour of sick leave for every 30 hours worked
  • Up to 40 hours of leave per benefit year
  • Usage for employee’s own health needs, family member care, or certain other qualifying reasons

Exemptions may include (based on official guidance):

  • Certain construction workers covered by collective bargaining agreements
  • Per diem healthcare employees under specific circumstances
  • Other limited categories as defined in statute

⚠️ Note: Actual coverage and obligations depend on specific circumstances. Employers should consult official NJDOL guidance and legal counsel.

Source: New Jersey Department of Labor – Earned Sick Leave
URL: https://www.nj.gov/labor/myworkrights/leave-benefits/sick-leave/law.shtml

3. New Jersey Workers’ Compensation Law

Statutory Citation: N.J.S.A. 34:15-1 et seq.
Official Source: https://www.nj.gov/labor/workerscompensation/

General Overview:

According to New Jersey statutes, the workers’ compensation system generally provides a no-fault insurance system for work-related injuries and illnesses.

Coverage generally includes (based on statute):

  • Medical treatment for work-related injuries
  • Temporary disability benefits
  • Permanent disability benefits
  • Death benefits for work-related fatalities

General Employer Obligations (as stated in statute):

  • Employers with employees generally must maintain workers’ compensation insurance
  • Coverage requirements apply regardless of employer size for most employment relationships

⚠️ Note: Coverage determinations are highly fact-specific. For questions about coverage requirements or claims, contact the New Jersey Division of Workers’ Compensation or consult legal counsel.

Source: New Jersey Division of Workers’ Compensation
URL: https://www.nj.gov/labor/workerscompensation/

4. New Jersey Unemployment Compensation Law

Statutory Citation: N.J.S.A. 43:21-1 et seq.
Official Source: https://www.nj.gov/labor/ea/

General Framework:

This law establishes the unemployment insurance system in New Jersey. According to the statute, employers generally must contribute to the unemployment compensation fund, and employees may be eligible for benefits under qualifying circumstances.

Application Note: The unemployment compensation law is also relevant for employee classification determinations under the ABC Test (discussed in detail in the Employee Classification section below).

5. New Jersey Law Against Discrimination (NJLAD)

Statutory Citation: N.J.S.A. 10:5-1 et seq.
Administering Agency: New Jersey Division on Civil Rights

General Provisions:

The New Jersey Law Against Discrimination is described as one of the most comprehensive anti-discrimination laws in the nation. According to official sources, it generally prohibits discrimination in employment based on numerous protected categories.

Protected categories may include (based on statute):

  • Race, creed, color, national origin, ancestry
  • Age, marital status, civil union status, domestic partnership status, affectional or sexual orientation
  • Genetic information, sex, gender identity or expression, disability
  • Liability for military service
  • Atypical hereditary cellular or blood trait

Source: New Jersey Division on Civil Rights
URL: https://www.nj.gov/oag/dcr/

6. New Jersey Family Leave Act (NJFLA)

Statutory Citation: N.J.S.A. 34:11B-1 et seq.

General Framework:

According to statute, this law generally provides eligible employees with job-protected leave for qualifying family and medical reasons. Coverage and eligibility requirements are detailed in statute and regulations.

7. New Jersey Temporary Disability Benefits Law and Family Leave Insurance

Statutory Citations:

  • Temporary Disability Benefits: N.J.S.A. 43:21-25 et seq.
  • Family Leave Insurance: N.J.S.A. 43:21-27 et seq.

General Overview:

According to the New Jersey Department of Labor, these programs generally provide wage replacement benefits through employee-funded insurance for certain qualifying circumstances.

Source: https://www.nj.gov/labor/myleavebenefits/

Resources for Legal Research

Official New Jersey Legal Resources:

Information reflects sources available as of December 2025 and may not include recent legislative changes, court decisions, or regulatory updates.

Employee Classification Standards in New Jersey

New Jersey’s Classification Test: The ABC Test

According to New Jersey statutes and case law, New Jersey applies the “ABC Test” for determining worker classification under various state laws, including:

  • The Unemployment Compensation Law (N.J.S.A. 43:21-19(i)(6))
  • The Wage and Hour Law (N.J.S.A. 34:11-56a)
  • The Wage Payment Law (N.J.S.A. 34:11-4.1)
  • The Earned Sick Leave Law (N.J.S.A. 34:11D-1)

Statutory Authority: N.J.S.A. 43:21-19(i)(6)(A)(B)(C)
Key Case Law: Hargrove v. Sleepy’s, LLC, 220 N.J. 289 (2015); East Bay Drywall, LLC v. Department of Labor and Workforce Development, 251 N.J. 477 (2022)
Official Guidance: https://www.nj.gov/labor/ea/audit/independent-contractor-vs-employees/
Proposed Regulations (2025): N.J.A.C. 12:11 (proposed)

The ABC Test Framework

⚠️ Important: This is a simplified summary of a complex legal test. Actual legal application requires detailed factual analysis and professional guidance.

General Principle:

Under the ABC Test, an individual is presumed to be an employee unless the hiring entity can establish ALL THREE of the following conditions:

The burden of proof is on the employer/hiring entity to demonstrate that all three prongs are satisfied.

If the employer cannot establish even one prong, the worker is classified as an employee for purposes of New Jersey law.

Prong A: Freedom from Control or Direction

Statutory Language (N.J.S.A. 43:21-19(i)(6)(A)):

“Such individual has been and will continue to be free from control or direction over the performance of such service, both under his contract of service and in fact”

General Description:

According to official guidance and case law, this prong generally examines whether the hiring entity exercises or has the right to exercise control over how the work is performed. The analysis looks at both contractual provisions and actual practice.

Factors that may be considered (based on official guidance):

Control Factors That May Indicate Employee Status:

  • The hiring entity sets specific work hours or schedules
  • The hiring entity requires work to be performed at specific locations
  • The hiring entity provides detailed instructions on how to perform work
  • The hiring entity supervises or monitors work performance
  • The hiring entity requires regular progress reports
  • The hiring entity provides training on how to perform work
  • The hiring entity retains the right to control work methods even if not exercised

Freedom Factors That May Indicate Independent Contractor Status:

  • The worker controls their own schedule and work hours
  • The worker determines their own work methods without direction
  • The worker operates independently without supervision
  • The contract explicitly provides freedom from control and practice matches contract
  • The worker is free to decline assignments or projects

⚠️ Critical Note: The mere existence of contract language stating the worker is independent and free from control is insufficient. Actual practice must align with contractual provisions.

Illustrative Scenarios (For General Understanding Only)

Scenario 1: Software Developer – Home-Based

Situation: A software developer works from home writing code for a company. The company assigns specific projects with deadlines. The developer must attend daily video meetings at set times, use company-provided software development tools, follow company coding standards, and submit code for company review and approval. The developer works only for this company.

General Observations: This scenario may share characteristics commonly associated with employment relationships because:

  • The company appears to exercise control over work methods (coding standards)
  • The company sets specific work times (required meetings)
  • The company provides tools and reviews work output
  • The worker appears to work exclusively for one entity

However, this is not a determination. Actual classification depends on complete factual analysis including the other two prongs of the ABC test.

This is for illustrative purposes only and does not constitute a classification determination.

Scenario 2: Graphic Designer – Project-Based

Situation: A graphic designer accepts project assignments from various clients. For one client, they create marketing materials. The client provides the overall project goals and brand guidelines but does not specify when or how the designer creates the work. The designer uses their own equipment and software, sets their own hours, and may decline projects. The designer serves 15 different clients and spends approximately 20% of time on this client.

General Observations: This scenario may share some characteristics commonly associated with independent contractor relationships because:

  • The worker appears to control work methods and timing
  • The worker uses own tools and equipment
  • The worker serves multiple clients
  • The worker may decline assignments

However, actual classification requires analysis of all three prongs and all relevant facts.

This is for illustrative purposes only and does not constitute a classification determination.

⚠️ REMINDER: Prong A is only ONE part of the three-part test. Even if a worker has freedom from control, they may still be classified as an employee if Prongs B or C are not satisfied.

Prong B: Work Outside Usual Course of Business or Place of Business

Statutory Language (N.J.S.A. 43:21-19(i)(6)(B)):

“Such service is either outside the usual course of the business for which such service is performed, or that such service is performed outside of all the places of business of the enterprise for which such service is performed”

General Description:

According to case law and proposed regulations, this prong generally examines whether the work performed is integral to the hiring entity’s business operations OR whether it is performed outside all of the entity’s business locations.

This is a disjunctive test: A worker may satisfy this prong by meeting EITHER condition (outside usual course of business OR outside all places of business).

Part 1: Outside the Usual Course of Business

Considerations that may be relevant (based on official guidance and case law):

Work Likely Integral to Business (May Not Satisfy This Part):

  • Core operational functions necessary to the business
  • Services directly related to the company’s primary products or services
  • Work that is regularly performed as part of business operations
  • Functions that customers expect from the business

Example: A delivery driver working for a delivery company would likely be performing work within the usual course of the company’s business, as delivery services are the company’s core function.

Work Potentially Outside Usual Course (May Help Satisfy This Part):

  • Specialized professional services not regularly needed
  • Services unrelated to core business operations
  • One-time or occasional projects outside normal business scope
  • Work that is ancillary or peripheral to main business

Example: An attorney hired by a restaurant to handle a one-time lease negotiation may be performing work outside the restaurant’s usual course of business, as legal services are not part of restaurant operations.

Part 2: Outside of All Places of Business

According to proposed regulations and case law interpretations:

⚠️ Critical Issue for Remote Workers: This analysis is particularly complex for remote work situations.

Key Principles (Based on Official Guidance):

  • “Place of business” may include locations where the business maintains operations or provides services
  • A worker’s home may be considered a “place of business” if it is designated as a work location by the employer
  • Remote work arrangements where the employer designates the home as a work location may not satisfy this prong
  • The analysis focuses on the employer’s places of business, not the worker’s choice of location

Illustrative Examples (General Education Only):

Scenario A: An accountant maintains their own office, serves multiple clients, and occasionally does work for a restaurant client. The accountant works from their own office, not the restaurant’s location. This work may be performed “outside of all the places of business” of the restaurant.

Scenario B: A customer service representative works from home full-time for a call center. The call center designates the home as an approved work location and provides equipment. The representative works only for this call center. According to proposed regulations, the home may be considered a “place of business” of the call center for purposes of this analysis, potentially failing to satisfy this prong.

⚠️ These examples are for general understanding only and do not constitute determinations.

Prong C: Independently Established Trade, Occupation, Profession or Business

Statutory Language (N.J.S.A. 43:21-19(i)(6)(C)):

“Such individual is customarily engaged in an independently established trade, occupation, profession or business”

General Description:

According to New Jersey Supreme Court guidance in East Bay Drywall, this prong generally requires the hiring entity to demonstrate that the worker operates as an independent business entity that exists and will continue to exist independently of the relationship with the hiring entity.

⚠️ Most Difficult Prong: Court decisions have noted that this is often the most challenging prong for employers to satisfy. The New Jersey Supreme Court has emphasized that this requires substantial evidence of an independent business operation.

Factors That May Be Considered (Based on Case Law and Proposed Regulations):

Evidence of Independent Business (May Help Satisfy Prong C):

Business Infrastructure:

  • Registered business entity (LLC, corporation, etc.)
  • Business license and permits
  • Business bank account separate from personal accounts
  • Business insurance (liability, professional liability)
  • Marketing materials, business cards, website
  • Dedicated business location or office

Multiple Client Relationships:

  • Serves multiple clients concurrently
  • Significant revenue from other clients (not just one entity)
  • Actively seeks new clients through marketing or advertising
  • Maintains client list and portfolio of work

Business Operations:

  • Sets own rates and negotiates fees
  • Invoices clients for services
  • Bears risk of profit or loss on projects
  • Makes business investments (equipment, tools, training)
  • Hires own assistants or subcontractors
  • Maintains business records and files business taxes

Duration and Continuity:

  • Business existed before relationship with hiring entity
  • Business continues to operate independently
  • Business will continue after relationship ends
  • Long-term business viability demonstrated

Factors That May Indicate Employee Status (May Fail Prong C):

  • Works exclusively or primarily for one entity
  • No evidence of seeking other clients
  • No business infrastructure (marketing, business entity, etc.)
  • Rates set by hiring entity, not negotiated
  • No business insurance or licenses
  • No business bank account or separate business finances
  • Business came into existence only for relationship with hiring entity
  • No independent business operations beyond the one relationship

Illustrative Scenarios (For General Understanding Only)

Scenario 1: IT Consultant

Situation: An IT consultant operates under a registered LLC, maintains a business website advertising services, has business insurance, serves 12 different clients, bills clients at rates they set, has a business bank account, and has operated the IT consulting business for 5 years. For one client, they provide cybersecurity services accounting for about 15% of annual revenue.

General Observations: This scenario may share characteristics commonly associated with independent businesses because:

  • Registered business entity with infrastructure
  • Multiple concurrent clients
  • Sets own rates
  • Business existed independently and continues independently
  • Significant business operations beyond single relationship

However, actual classification still requires analysis of Prongs A and B, and professional determination.

This is for illustrative purposes only and does not constitute a classification determination.

Scenario 2: Full-Time Remote Writer

Situation: A writer works from home writing content for a company’s blog and marketing materials. The writer works 40 hours per week exclusively for this company, receives regular payments on a schedule, does not have a registered business, does not maintain a business website or advertise services, does not have business insurance, and does not seek or serve other clients.

General Observations: This scenario may share characteristics commonly associated with employment relationships because:

  • Works exclusively for one entity
  • No evidence of independent business infrastructure
  • No marketing or seeking of other clients
  • No business registration or business identity beyond the relationship

This would likely fail Prong C based on these facts, but actual classification requires professional analysis.

This is for illustrative purposes only and does not constitute a classification determination.

Recent Developments: Proposed Regulations (2025)

In April 2025, the New Jersey Department of Labor and Workforce Development proposed formal regulations at N.J.A.C. 12:11 to codify the ABC Test interpretation.

Key Points from Proposed Regulations:

  • Provide detailed guidelines for evaluating each prong of the ABC Test
  • Emphasize that job titles and contract labels do not determine classification
  • Clarify that issuing a 1099 form does not establish independent contractor status
  • Stress that all three prongs must be satisfied for independent contractor status

Status: Proposed regulations published May 5, 2025, in the New Jersey Register. Public comment period ended July 4, 2025. Final regulations anticipated for adoption in 2025-2026.

Source: New Jersey Department of Labor and Workforce Development press release, April 28, 2025
URL: https://www.nj.gov/labor/lwdhome/press/2025/20250428_ABC.shtml

⚠️ Note: Regulations have not been finalized as of December 2025. Monitor NJDOL website for updates.

Special Considerations for Remote Workers

Additional Complexity: Classification of remote workers involves additional considerations beyond traditional employment relationships.

Factors That May Be Relevant:

  • Physical work location vs. employer’s business locations
  • Nature of remote work arrangement (employer-mandated vs. worker choice)
  • Level of control in virtual work environment
  • Whether employer provides equipment and designates home as work location
  • Integration of remote worker into employer’s operations

⚠️ Important: These factors do not change the ABC Test but may affect how the test is applied to specific facts. Classification of remote workers should be reviewed with legal counsel familiar with New Jersey law and your specific circumstances.

Potential Consequences of Misclassification

According to New Jersey Department of Labor guidance and statutory provisions, misclassification may result in various consequences. This is general information only about potential outcomes.

For Employers (According to Official Sources):

Potential Liability May Include (Non-Exhaustive):

  • Back payment of unemployment insurance contributions
  • Back payment of temporary disability and family leave insurance contributions
  • Potential workers’ compensation premium adjustments
  • Wage and hour claim exposure (minimum wage, overtime)
  • Earned sick leave benefit obligations
  • Potential penalties and interest
  • Tax implications at state and federal levels
  • Possible stop-work orders for construction industry violations

Source: Various New Jersey statutes and NJDOL enforcement authority

New Jersey Wage Theft Law: Under N.J.S.A. 34:11-4.13, violations of wage and hour laws may result in enhanced penalties including up to 200% liquidated damages.

For Workers (According to Official Sources):

Misclassification may affect:

  • Access to unemployment benefits
  • Workers’ compensation coverage
  • Wage and hour protections (minimum wage, overtime)
  • Earned sick leave eligibility
  • Protection under anti-discrimination laws
  • Family leave protections

⚠️ Note: The specific consequences depend on many factors including the nature of the violation, the laws implicated, and whether violations are found to be willful. This is general information only.

How to Seek Guidance on Classification

Classification questions should be addressed through official channels and professional advisors:

New Jersey Department of Labor Resources:

Professional Guidance:

  • Employment attorney licensed in New Jersey
  • Tax professional (CPA or enrolled agent) familiar with New Jersey and federal law
  • HR consultant with New Jersey employment law expertise
  • IRS (for federal tax implications)

New Jersey State Bar Association Attorney Referral:

Classification Decision Checklist

Before making classification decisions, consider consulting with professionals to evaluate:

☐ Can you demonstrate the worker is free from your control and direction, both contractually and in actual practice? (Prong A)

☐ Is the work either outside your usual business operations OR performed outside all your places of business? (Prong B)

☐ Does the worker operate an independently established business with multiple clients, business infrastructure, and independent viability? (Prong C)

☐ Have you documented the relationship with contracts that accurately reflect actual practice?

☐ Have you consulted with legal counsel and tax professionals about classification?

☐ Have you reviewed IRS classification requirements separately from state law?

☐ If a construction employer, have you reviewed additional misclassification penalties and enforcement provisions?

⚠️ This checklist is for general awareness only and does not constitute legal guidance. Professional consultation is essential for classification decisions.

Minimum Wage Information in New Jersey

Current Rate Information (As Published by NJ DOL)

According to the New Jersey Department of Labor and Workforce Development, the state minimum wage as of December 2025 is generally set by statute and regulation, with annual adjustments based on the Consumer Price Index (CPI).

Statutory Authority: N.J.S.A. 34:11-56a4 and N.J. Constitution Article 1, Paragraph 23
Regulatory Authority: N.J.A.C. 12:56-3.1
Official Source: https://www.nj.gov/labor/wageandhour/

2026 Minimum Wage Rates (Effective January 1, 2026)

According to the New Jersey Department of Labor and Workforce Development announcement dated October 1, 2025:

Employee Category 2025 Rate 2026 Rate Increase
Most Employees $15.49/hour $15.92/hour $0.43
Seasonal & Small Employers* $14.53/hour $15.23/hour $0.70
Agricultural Workers $13.40/hour $14.20/hour $0.80
Long-Term Care Direct Care Staff $18.49/hour $18.92/hour $0.43

Small employers = fewer than 6 employees; Seasonal employers as defined in statute

Source: New Jersey Department of Labor and Workforce Development, Press Release October 1, 2025
URL: https://www.nj.gov/labor/lwdhome/press/2025/20251001_Minimum_Wage.shtml

Tipped Employees

According to New Jersey regulations, employers may take a “tip credit” for tipped employees under specific circumstances.

2026 Tipped Employee Rates (Effective January 1, 2026):

  • Minimum Cash Wage: $6.05/hour (increased from $5.62/hour)
  • Maximum Tip Credit: $9.87
  • Required Total: Minimum cash wage + tips must equal at least the full state minimum wage ($15.92/hour for most employees)

How This Generally Works (Based on Official Guidance):

If an employee’s cash wage plus tips do not equal at least the state minimum wage for all hours worked, the employer generally must pay the difference to bring total compensation to minimum wage.

Example for Illustrative Purposes Only:

  • Tipped employee works 40 hours in a week
  • Receives $6.05/hour cash wage = $242
  • Receives $300 in tips for the week = $7.50/hour average
  • Total: $6.05 + $7.50 = $13.55/hour
  • Falls short of $15.92 minimum wage by $2.37/hour
  • Employer would need to pay additional $2.37/hour × 40 hours = $94.80

⚠️ This is a simplified example for general understanding only and does not constitute guidance on actual calculations. Specific situations may vary. Consult NJDOL and legal counsel.

Source: NJDOL Wage and Hour FAQs
URL: https://www.nj.gov/labor/wageandhour/support/faqs/wageandhourworkerfaqs.shtml

Historical Context and Future Increases

Background (General Information):

According to publicly available information, New Jersey’s minimum wage was $8.60/hour when Governor Murphy took office in 2018. Legislation signed in February 2019 established a schedule of gradual increases leading to $15.00/hour for most employees by January 1, 2024.

Under the New Jersey Constitution (Article 1, Paragraph 23), the minimum wage is required to be adjusted annually based on any increase in the Consumer Price Index (CPI) as provided by the U.S. Bureau of Labor Statistics.

Future Adjustments:

The minimum wage for most employees will continue to increase annually based on CPI adjustments. Seasonal, small employer, and agricultural worker rates are on separate timetables:

  • Seasonal and small employers: scheduled to reach $15/hour base by 2028
  • Agricultural workers: scheduled to reach $15/hour base by 2030

After reaching these base levels, all categories will continue to adjust annually based on CPI increases.

⚠️ Note: This reflects the general framework as of December 2025. Legislative changes could modify these schedules. Verify current rates annually.

Application to Remote Workers

⚠️ Complex Issue: Determining which state’s minimum wage applies to remote workers can involve multiple considerations.

General Principles (Based on Legal Standards):

According to general legal principles applied in wage and hour law:

  • Minimum wage typically applies based on where work is physically performed
  • A worker performing work from a location in New Jersey would generally be subject to New Jersey minimum wage
  • Employer location is generally not the determining factor for minimum wage purposes
  • Multi-state employment may involve complex analysis

Illustrative Scenarios (For General Understanding Only):

Scenario 1: An employee of a California company works remotely full-time from their home in Newark, New Jersey.

General Analysis: Based on general principles, this worker would likely be subject to New Jersey minimum wage requirements because they are physically performing work from a location in New Jersey, regardless of where the employer is located.

Scenario 2: An employee of a New Jersey company works remotely full-time from their home in Pennsylvania.

General Analysis: This situation may be subject to Pennsylvania minimum wage law based on work location, though the New Jersey-Pennsylvania reciprocal agreement may have implications for tax withholding (see Tax section).

⚠️ These examples are for general educational purposes only and do not constitute determinations. Multi-state employment situations require consultation with legal counsel familiar with both states’ laws.

For Guidance:

  • New Jersey Division of Wage and Hour Compliance: (609) 292-2305
  • Employment attorney licensed in relevant state(s)
  • U.S. Department of Labor Wage and Hour Division

Local Minimum Wages

According to available information as of December 2025, New Jersey does not currently have local jurisdictions (cities or counties) that have enacted their own minimum wage ordinances higher than the state minimum wage.

⚠️ Note: Some states allow localities to set higher minimum wages. While New Jersey municipalities have not done so as of December 2025, employers should monitor for potential local ordinances.

If working in multiple states: Some cities in other states (e.g., New York City, San Francisco) have local minimum wages higher than their state minimum. Remote workers in those locations may be subject to local requirements.

Exemptions and Variations

According to New Jersey statutes and regulations, certain exemptions or variations from minimum wage may apply in limited circumstances.

Potential Exemptions (Based on Statute):

The following categories may be exempt or have different wage requirements (this is not exhaustive):

  • Outside salespeople
  • Certain commissioned salespeople (if they meet specific criteria)
  • Certain employees with disabilities (with special permits)
  • Some categories of student workers (under specific circumstances)
  • Apprentices in registered apprenticeship programs (under specific conditions)

⚠️ Important: Exemptions are narrowly construed and fact-specific. Do not assume an exemption applies without verification from official sources and legal counsel.

For Exemption Verification:

  • New Jersey Division of Wage and Hour Compliance
  • Official NJDOL guidance materials
  • Legal counsel for interpretation

Special Minimum Wage for Minors

According to NJDOL FAQs, certain categories of minors may be exempt from minimum wage requirements:

Potential Exemptions (Based on Official Guidance):

  • Minors under age 18 working in certain categories (outside of retail, food service, first processing of farm products, beauty culture, laundry/cleaning, light manufacturing, apparel, and hotel/motel occupations)

However, minors working in the specified industries (retail, food service, etc.) generally must receive the full state minimum wage.

Source: NJDOL Wage and Hour Worker FAQs
URL: https://www.nj.gov/labor/wageandhour/support/faqs/wageandhourworkerfaqs.shtml

⚠️ Note: Youth employment is subject to additional restrictions and regulations beyond minimum wage. Employers of minors should consult comprehensive youth employment guidance.

Comparison with Surrounding States (For Reference Only):

State 2025 Rate 2026 Rate (If announced) Notes
New Jersey $15.49 $15.92 CPI-adjusted annually
New York $15.00–$16.00 Varies by region NYC higher rate
Pennsylvania $7.25 $7.25 Follows federal minimum
Delaware $13.25 TBD Scheduled increases
Connecticut $15.69 TBD CPI-adjusted annually

⚠️ This comparison is for general reference only. Each state’s laws apply based on where work is performed. Multi-state employers must comply with applicable requirements in each work location.

Employer Obligations and Record-Keeping

According to New Jersey wage and hour regulations, employers generally have various obligations related to minimum wage compliance:

General Requirements (Based on Official Guidance):

  • Pay employees at least the applicable minimum wage for all hours worked
  • Maintain accurate time and payroll records
  • Provide employees with itemized wage statements
  • Post required wage notice in workplace

Recordkeeping (Based on N.J.A.C. 12:56): Employers generally must maintain records including:

  • Employee identification and classification information
  • Hours worked each day and workweek
  • Regular hourly rate(s) of pay
  • Total daily and weekly earnings
  • Deductions from wages
  • Total wages paid each pay period

Retention: Records generally must be retained for a period specified in regulations.

⚠️ Note: Specific recordkeeping requirements are detailed in regulations. Consult N.J.A.C. 12:56 and legal counsel for complete requirements.

Resources for Current Information

Official Minimum Wage Information:

⚠️ CRITICAL REMINDER: Minimum wage compliance depends on many factors including employee classification, industry, hours worked, and work location. This information is general background only and does not constitute compliance guidance. Employers should:

  1. Verify current rates with NJDOL before payroll processing
  2. Consult legal counsel for classification and coverage questions
  3. Review recordkeeping requirements in detail
  4. Monitor for legislative changes and CPI adjustments
  5. Seek guidance for multi-state employment situations

Violations of minimum wage laws may result in significant penalties including back wages, liquidated damages, and other consequences. Professional guidance is strongly recommended.

Overtime and Break Regulations in New Jersey

A. Overtime Standards

⚠️ Complex Area: Overtime eligibility and calculation involve detailed factual analysis. The following is general information only.

Governing Framework

Federal and State Standards:

New Jersey generally follows the federal Fair Labor Standards Act (FLSA) for overtime requirements. According to the New Jersey State Wage and Hour Law (N.J.S.A. 34:11-56a et seq.) and FLSA (29 U.S.C. § 201 et seq.), overtime standards generally apply to non-exempt employees.

Statutory Authority:

  • Federal: 29 U.S.C. § 207 (FLSA)
  • New Jersey: N.J.S.A. 34:11-56a8

Official Sources:

General Overtime Threshold

According to federal and New Jersey law, overtime compensation is generally required under the following framework:

Standard Overtime Rule:

  • Threshold: Hours worked in excess of 40 hours in a workweek
  • Rate: 1.5 times the employee’s regular rate of pay
  • Workweek Definition: Any fixed and regularly recurring period of 168 hours (7 consecutive 24-hour periods)

⚠️ Daily Overtime: New Jersey does NOT have a daily overtime requirement. Overtime is calculated on a weekly basis only. Working more than 8 hours in a single day does not automatically trigger overtime unless weekly hours exceed 40.

Source: NJDOL guidance and FLSA standards

What Constitutes “Hours Worked”

According to federal guidance and general principles, “hours worked” for overtime calculation purposes may include:

Generally Compensable Time:

  • Time spent performing actual work duties
  • Required meetings and training sessions
  • Required travel time (with exceptions for normal commuting)
  • Time waiting to perform work under certain circumstances
  • Short breaks (typically 20 minutes or less)
  • Certain on-call time depending on restrictions placed on employee

Generally Non-Compensable Time:

  • Bona fide meal periods (typically 30+ minutes, completely relieved of duties)
  • Normal home-to-work travel
  • Time spent on purely personal activities
  • Voluntary training outside work hours unrelated to job

⚠️ Highly Fact-Specific: Determining compensable time requires detailed analysis of actual circumstances.

Remote Work Time-Tracking Challenges

⚠️ Special Complexity for Remote Workers: Determining compensable time for remote workers can involve additional considerations.

Issues That May Arise:

  • After-hours email responses
  • Off-hours phone calls or messages
  • Virtual meetings outside regular schedule
  • Time logged into work systems
  • “Standby” or on-call time at home
  • Training or required reading done at home

General Principles (Based on FLSA Guidance):

  • If work is “suffered or permitted” by the employer, it is generally compensable
  • Employer knowledge (actual or constructive) of work being performed may create obligation to compensate
  • De minimis (minimal) amounts of time may not require compensation under certain circumstances
  • Clear policies and time-tracking procedures are important

⚠️ Employers should:

  • Establish clear policies on after-hours work
  • Implement time-tracking systems for remote workers
  • Train managers on monitoring and approval of hours
  • Consult wage-hour counsel for policy development

For Guidance: U.S. DOL Fact Sheet #22 (Hours Worked Under FLSA)

Application to Remote Workers

General Framework:

Overtime regulations typically apply to non-exempt employees regardless of work location. Remote workers performing non-exempt work would generally be subject to the same overtime requirements as on-site workers.

⚠️ Key Issues:

  • Classification as exempt vs. non-exempt (see Part 1 on Classification)
  • Tracking hours actually worked
  • Controlling unauthorized overtime
  • Multi-state compliance if working from different locations

Calculating the “Regular Rate” for Overtime

According to FLSA regulations, the “regular rate” for overtime calculation purposes includes:

Generally Included in Regular Rate:

  • Hourly wages
  • Salaries (divided by hours worked)
  • Non-discretionary bonuses
  • Shift differentials
  • Commissions (in many cases)
  • Certain other forms of compensation

Generally Excluded from Regular Rate:

  • Discretionary bonuses
  • Gifts
  • Payments for periods of non-work (vacation, holidays, sick leave)
  • Certain premium payments
  • Other specific exclusions under FLSA

⚠️ Complex Calculation: Regular rate calculation can be complicated when multiple forms of compensation are involved. Consult DOL guidance or legal counsel for specific calculations.

Source: 29 C.F.R. § 778 (FLSA regulations on regular rate)

Overtime Exemptions

⚠️ CRITICAL: Exemptions from overtime are narrowly interpreted. The burden is on the employer to establish that an exemption applies. Misclassification can result in significant liability.

Overview of Exempt Categories:

According to FLSA and New Jersey law, certain employees may be exempt from overtime requirements. Common exemptions include:

  1. Executive, Administrative, and Professional (EAP) Exemptions
  2. Computer Employee Exemption
  3. Outside Sales Exemption
  4. Certain other specific exemptions

⚠️ All exemptions require meeting specific tests. Job title alone does not determine exemption status.

Executive, Administrative, and Professional Exemptions

General Framework (Based on FLSA Regulations):

To potentially qualify for EAP exemptions, employees must generally satisfy THREE tests:

  1. Salary Basis Test: Paid predetermined salary not subject to reduction
  2. Salary Level Test: Meet minimum salary threshold
  3. Duties Test: Perform exempt-level duties

ALL THREE tests must be satisfied. Failure to meet any one test means the exemption does not apply.

1. Salary Basis Test

According to FLSA regulations at 29 C.F.R. § 541.602:

An employee is generally paid on a salary basis if:

  • Employee regularly receives predetermined amount constituting all or part of compensation
  • Amount cannot be reduced because of variations in quality or quantity of work
  • Employee receives full salary for any week in which work is performed (subject to limited exceptions)

Prohibited Deductions: Deductions that may violate salary basis (with exceptions):

  • Deductions for partial day absences
  • Deductions for quality or quantity of work
  • Deductions as disciplinary measures (in most cases)

Permitted Deductions May Include:

  • Full-day absences for personal reasons
  • Full-day absences for sickness/disability (under certain circumstances)
  • To offset jury/military pay
  • For unpaid FMLA leave
  • First or last week of employment (prorated)

⚠️ Improper Deductions: Making improper deductions can jeopardize exempt status.

2. Salary Level Test

Federal Minimum (As of December 2025):

According to federal regulations:

  • Standard EAP exemptions: $684 per week ($35,568 annually)

⚠️ Note: Federal salary thresholds have been subject to proposed changes. Verify current threshold with U.S. DOL.

New Jersey Consideration:

While New Jersey follows federal salary levels for exemption purposes, employers should ensure that:

  • Salary equals at least minimum wage for ALL hours worked
  • For 2026: At $15.92/hour minimum wage, an exempt employee working 50 hours/week would need minimum salary of $796/week to avoid minimum wage violations

Example Calculation (Illustrative Only):

  • Exempt employee regularly works 55 hours per week
  • 2026 NJ minimum wage: $15.92/hour
  • Minimum required salary: $15.92 × 55 = $875.60/week

Even if employee meets $684 federal threshold, salary must cover all hours at minimum wage rate.

3. Duties Tests

⚠️ Most Complex Part: Duties tests require detailed analysis of actual job responsibilities.

Executive Exemption – General Criteria (Based on 29 C.F.R. § 541.100):

Primary duty generally must be:

  • Management of enterprise or recognized department/subdivision
  • Customarily and regularly direct work of 2+ other employees
  • Authority to hire/fire or recommendations given particular weight

Factors That May Indicate Executive Duties:

  • Interviewing, selecting, training employees
  • Setting rates of pay and hours of work
  • Handling employee complaints and discipline
  • Planning and budgeting
  • High degree of independent judgment and discretion

Administrative Exemption – General Criteria (Based on 29 C.F.R. § 541.200):

Primary duty generally must be:

  • Office or non-manual work directly related to management or general business operations
  • Exercise of discretion and independent judgment on significant matters

Examples May Include:

  • HR policy matters
  • Financial planning and budgeting
  • Public relations
  • Quality control
  • Administrative functions (not production or sales)

⚠️ “Administrative” does not mean clerical. Routine data entry, record-keeping, or similar tasks do not generally qualify.

Professional Exemption – General Criteria (Based on 29 C.F.R. § 541.300):

Learned Professional:

  • Primary duty: Work requiring advanced knowledge
  • Advanced knowledge: Predominantly intellectual, includes consistent exercise of discretion and judgment
  • Advanced knowledge in field of science or learning
  • Advanced knowledge acquired by prolonged, specialized intellectual instruction

Examples: lawyers, doctors, engineers, teachers (with exceptions), accountants (meeting certain criteria)

Creative Professional:

  • Primary duty: Work requiring invention, imagination, originality, or talent in recognized artistic or creative field

Examples: musicians, composers, writers, actors, graphic designers (in some cases)

Computer Employee Exemption (29 C.F.R. § 541.400)

General Criteria:

May apply to computer systems analysts, programmers, software engineers, or similarly skilled workers if:

Compensation:

  • Paid at least $684/week salary OR
  • Paid at least $27.63/hour (federal rate as of 2020, verify current rate)

Duties (must meet these):

  • Application of systems analysis techniques and procedures
  • Design, development, documentation, analysis, creation, testing, or modification of computer systems or programs
  • Design, documentation, testing, creation, or modification of computer programs related to machine operating systems

⚠️ Does Not Include: Computer support, help desk, maintenance, repair, or similar roles.

Outside Sales Exemption (29 C.F.R. § 541.500)

General Criteria:

  • Primary duty is making sales or obtaining orders/contracts
  • Customarily and regularly engaged away from employer’s place(s) of business

⚠️ Note: No salary requirement, but exempt from both minimum wage and overtime.

⚠️ Remote Work Consideration: Analysis may be more complex for remote sales roles.

Other Potential Exemptions

Various other exemptions may apply to specific categories:

  • Certain commissioned retail or service employees (under specific formulas)
  • Certain transportation workers
  • Some agricultural workers
  • Motion picture theater employees
  • Certain seasonal amusement/recreation employees

Source: FLSA § 13 and implementing regulations

⚠️ These exemptions have specific criteria. Do not assume applicability without verification.

Exemption Analysis for Remote Workers

Additional Considerations:

Classification as exempt or non-exempt does not change based on remote vs. on-site work. However:

  • Documentation of duties may be more important
  • Actual vs. stated duties should be carefully evaluated
  • Independent judgment and discretion should be clearly established
  • Remote managers’ authority to hire, fire, direct work should be documented

Consequences of Misclassification

According to FLSA and New Jersey law, misclassifying non-exempt employees as exempt may result in:

Potential Consequences:

  • Back payment of overtime wages
  • Liquidated damages (equal to unpaid wages under FLSA; up to 200% under NJ Wage Theft Law)
  • Attorneys’ fees and court costs
  • Civil penalties
  • In cases of willful violations, potential criminal penalties

Statute of Limitations:

  • Federal FLSA: Generally 2 years (3 years for willful violations)
  • New Jersey: Generally 6 years under state wage and hour law

⚠️ Liability can be substantial. Professional guidance on classification is strongly recommended.

B. Meal and Rest Break Requirements

New Jersey State Law

⚠️ Important Distinction: New Jersey does NOT require employers to provide meal or rest breaks to adult employees (age 18 and over).

Statutory Framework:

According to available New Jersey Department of Labor guidance, there is no state law mandating:

  • Meal periods/lunch breaks
  • Rest breaks/coffee breaks
  • Any breaks for employees 18 years or older

Source: NJDOL Wage and Hour FAQs
URL: https://www.nj.gov/labor/wageandhour/support/faqs/wageandhourworkerfaqs.shtml

Federal Standards (If Employer Provides Breaks Voluntarily)

If an employer chooses to provide breaks, federal Fair Labor Standards Act (FLSA) standards apply to whether breaks must be paid:

FLSA Guidance (29 C.F.R. § 785.18-19):

Short Rest Breaks (5-20 minutes):

  • Generally must be counted as compensable work time
  • Cannot be deducted from hours worked
  • Promote efficiency and are customary in many industries

Bona Fide Meal Periods (30+ minutes):

  • May be unpaid IF:
    • Employee is completely relieved of all duties
    • Employee is free to leave workstation
    • Period is long enough to permit eating a meal (typically 30+ minutes)
    • Employee does not perform any work during the period

⚠️ Critical: If an employee performs ANY work during a meal break, the entire break time is generally compensable.

Source: U.S. Department of Labor Fact Sheet #22

Special Considerations for Remote Workers

Tracking Break Time:

For remote workers, verifying that meal periods are unpaid can be challenging:

  • Employer must ensure employee is completely relieved of duties
  • Employee answering emails/calls during lunch may make time compensable
  • Clear policies on meal periods are important
  • Time-tracking systems should account for meal periods

Recommended Practices (Not Legal Requirements):

  • Clearly communicate meal period policies
  • Require employees to clock out for meal periods
  • Instruct employees not to work during unpaid meal breaks
  • Monitor for and address work performed during meal periods

⚠️ If there is uncertainty about whether meal periods are truly work-free, consider paying for them to avoid risk.

Minors (Under Age 18)

New Jersey law DOES require breaks for minors.

Requirements for Employees Under 18:

  • Must receive at least 30 minutes meal period for every 5 consecutive hours worked
  • Meal period is unpaid if completely relieved of duties

Source: New Jersey child labor laws

Comparison with Other States

Some states have mandatory meal/break requirements that may apply to remote workers:

States with mandatory meal breaks include: California, Colorado, Connecticut, Delaware, Illinois, Kentucky, Maine, Massachusetts, Minnesota, Nebraska, Nevada, New Hampshire, New York, North Dakota, Oregon, Rhode Island, Tennessee, Vermont, Washington, West Virginia

States with mandatory rest breaks include: California, Colorado, Kentucky, Minnesota, Nevada, Oregon, Vermont, Washington

⚠️ For remote workers in other states: Employers may need to comply with break requirements of the state where the employee is located.

Wage Payment Requirements

According to the New Jersey Wage Payment Law (N.J.S.A. 34:11-4.1 et seq.):

General Requirements:

  • Employees must be paid at least twice per month on regularly designated paydays
  • Payment must be in lawful money of the United States
  • Employers must provide itemized wage statements showing:
    • Gross wages
    • Deductions
    • Net wages

Executive, Administrative, Professional Exemptions: May be paid once per month.

Unauthorized Overtime

According to FLSA principles and general wage and hour standards:

If Non-Exempt Employee Works Unauthorized Overtime:

  • Employer generally must pay for all hours worked, including unauthorized overtime
  • Employer may take disciplinary action for policy violations
  • Employer CANNOT refuse to pay for hours actually worked

Best Practices:

  • Clear policies requiring pre-approval for overtime
  • Consistent enforcement of policies
  • Time-tracking and monitoring systems
  • Training for managers and employees

Resources and Guidance

New Jersey Wage and Hour Compliance:

U.S. Department of Labor Wage and Hour Division:

For Legal Advice:

  • Employment law attorney licensed in New Jersey
  • New Jersey State Bar Association Referral: (732) 249-5000

⚠️ FINAL CRITICAL REMINDER: Wage and hour compliance is highly fact-specific and technical. Violations can result in significant back pay liability, liquidated damages, and penalties.

Key Compliance Steps:

  1. Properly classify employees as exempt or non-exempt
  2. Accurately track all hours worked
  3. Pay overtime when required
  4. Maintain detailed records
  5. Implement clear policies
  6. Train managers on compliance
  7. Seek professional guidance when uncertain

This information is for general background only. Employers should obtain professional guidance on classification, time tracking, break policies, and overtime compliance.

Information reflects sources available as of December 2025. Overtime regulations and exemption criteria are subject to change. Verify current requirements with official sources.

New Jersey Earned Sick Leave

Legal Framework

Statutory Authority: N.J.S.A. 34:11D-1 et seq. (New Jersey Earned Sick Leave Law)
Effective Date: October 29, 2018
Regulatory Authority: N.J.A.C. 12:69
Administering Agency: New Jersey Department of Labor and Workforce Development
Official Resource: https://www.nj.gov/labor/myworkrights/leave-benefits/sick-leave/

General Program Description

According to the New Jersey Department of Labor, the Earned Sick Leave Law generally:

  • Applies to employers of all sizes in New Jersey
  • Requires provision of earned sick leave to covered employees
  • Provides for accrual or advance provision of leave
  • Covers full-time, part-time, and temporary employees

⚠️ Note: Actual applicability depends on specific circumstances including employment status, work location, and other factors.

Coverage Framework

Employer Coverage

General Rule (Based on Official Guidance):

According to NJDOL, the law generally applies to employers of all sizes that have employees working in New Jersey. There is no minimum employee threshold.

“Employer” Generally Includes (Based on Statute):

  • Private sector employers
  • Non-profit organizations
  • Public sector employers (with some exceptions)

May Not Apply To (Based on Statute and Regulations):

  • Certain construction workers covered by qualifying collective bargaining agreements
  • Per diem healthcare employees under specific circumstances
  • Some other limited categories

⚠️ Verification: Employers uncertain about coverage should consult NJDOL guidance or legal counsel.

Source: N.J.S.A. 34:11D-2
URL: https://www.nj.gov/labor/myworkrights/leave-benefits/sick-leave/law.shtml

Employee Eligibility

General Coverage (Based on Official Guidance):

The law generally covers employees who work in New Jersey, including:

  • Full-time employees
  • Part-time employees
  • Temporary employees
  • Seasonal employees

May Not Be Covered:

  • Independent contractors (if properly classified)
  • Certain categories specifically exempted by statute
  • Some construction workers under qualifying collective bargaining agreements
  • Some per diem healthcare employees

Remote Workers

Application to Remote Work:

According to general principles and NJDOL guidance, employees who perform work from locations in New Jersey are generally covered by the Earned Sick Leave Law.

Factors That May Be Relevant:

  • Where the employee physically performs work
  • Whether the employer has a presence in New Jersey
  • The nature of the employment relationship

⚠️ Multi-State Employment: Complex situations involving work performed in multiple states should be reviewed with legal counsel.

Accrual Provisions

According to the statute and regulations, employers have two general options for providing earned sick leave:

Option 1: Accrual Method

General Framework (N.J.S.A. 34:11D-2):

  • Employees accrue one hour of earned sick leave for every 30 hours worked
  • Accrual begins when employment commences (or October 29, 2018, whichever is later)
  • Annual cap: Employers are not required to permit accrual or use of more than 40 hours per benefit year

Benefit Year Definition: A 12-consecutive-month period determined by the employer.

Option 2: Advance/Frontload Method

General Framework:

  • Employer may provide the full 40 hours of earned sick leave at the beginning of the benefit year
  • This eliminates need to track accrual
  • If employee hired mid-year, employer may prorate the advanced leave

Example for Illustrative Purposes Only:

  • Benefit year: January 1 – December 31
  • Employee hired July 1 (halfway through year)
  • Employer could provide 20 hours upfront (prorated)
  • OR employer could provide full 40 hours

⚠️ This is a simplified example for general understanding. Specific situations may vary.

Carryover Requirements

General Rule (Based on Statute):

If using the accrual method:

  • Employees may carry over up to 40 hours of unused earned sick leave to the next benefit year
  • Employer may choose to pay out unused leave instead of requiring carryover
  • Total accrual and carryover cannot be limited to less than 40 hours available per year

If using the frontload method:

  • If providing full 40 hours upfront each benefit year, carryover may not be required

Verification: Specific carryover obligations depend on employer’s chosen method. Consult NJDOL guidance.

When Leave Can Be Used

Waiting Period (Based on Statute):

  • Employees begin accruing from first day of work
  • Employers may prohibit use until employee has been employed for 120 calendar days
  • If employer frontloads leave, employer may still impose 120-day waiting period OR may allow immediate use

Permitted Uses of Earned Sick Leave

According to N.J.S.A. 34:11D-3, earned sick leave may generally be used for:

1. Employee’s Own Health:

  • Diagnosis, care, treatment, or recovery from mental or physical illness, injury, or health condition
  • Preventive medical care
  • Vaccine appointments and recovery from side effects

2. Family Member Care:

  • Caring for family member with health needs described above
  • Accompanying family member to medical appointments

3. Domestic or Sexual Violence:

  • Time needed for employee or family member who is victim of domestic or sexual violence to:
    • Obtain medical attention or psychological/other counseling
    • Obtain services from victim services organization
    • Participate in safety planning or relocation
    • Obtain legal services or participate in legal proceedings

4. Public Health Emergency:

  • School or place of care closure by public official due to public health emergency
  • Quarantine based on advice of health provider or public health authority
  • Care for child whose school/childcare is closed due to epidemic/public health emergency

5. School-Related:

  • School-related conferences, meetings, or events related to child’s education or health
  • When attendance by parent/guardian is requested or required by school administrator, teacher, or other staff

Definition of “Family Member”

According to N.J.S.A. 34:11D-1, “family member” is broadly defined to include:

  • Child (biological, adopted, foster, stepchild, legal ward, child of domestic partner/civil union partner)
  • Grandchild
  • Sibling
  • Parent (biological, adoptive, step, foster, legal guardian, stood in loco parentis)
  • Grandparent
  • Spouse, domestic partner, civil union partner
  • Any other individual with family-like relationship to employee

⚠️ Broad Definition: New Jersey’s definition of family member is more expansive than many other state and federal leave laws.

Notice and Documentation

Notice Requirements (Based on Regulations)

Foreseeable Use:

  • Employer may require up to 7 calendar days’ advance notice
  • Employer must have communicated this requirement to employees in advance

Unforeseeable Use:

  • Employer may require notice “as soon as practicable”
  • Employer must have stated this requirement in advance
  • If employer has not stated requirement, employer must allow use without prior notice

Documentation Requirements

General Rule (Based on Statute and Regulations):

Employers may require documentation for:

  • Absences of 3 or more consecutive days of work
  • Documentation from healthcare provider or other appropriate provider

Employer Cannot:

  • Require documentation for absences less than 3 consecutive days
  • Require disclosure of medical details or diagnosis
  • Require more information than necessary to verify need for leave

⚠️ Privacy: Information about earned sick leave use must be kept confidential.

Blackout Periods

Limited Restriction Allowed:

According to regulations, employers may prohibit use of foreseeable earned sick leave during:

  • High-volume periods
  • Special events

Requirements:

  • Must provide advance notice of blackout periods
  • Can only apply to foreseeable leave
  • Must be reasonable

⚠️ Cannot prohibit: Unforeseeable leave or emergency situations.

Rate of Pay for Earned Sick Leave

According to N.J.S.A. 34:11D-2:

General Rule:

  • Employee must be paid at regular hourly rate
  • Rate must be at least state minimum wage
  • Payment in same or next pay period

For Employees with Fluctuating Pay:

According to official guidance, for employees whose pay varies or includes multiple rates:

  • Add total earnings (excluding overtime) for 7 most recent workdays
  • Divide by total hours worked in those 7 days
  • Result is rate for sick leave pay

For Commissioned Employees:

  • Hourly base wage OR
  • State minimum wage (whichever is greater)

Employer Obligations

Recordkeeping (Based on Statute)

Required Records (Must Maintain for 5 Years):

  • Hours worked by employees
  • Earned sick leave accrued/advanced
  • Earned sick leave used
  • Earned sick leave paid out
  • Earned sick leave carried over

Confidentiality:

  • Reasons for sick leave use must be kept confidential
  • Records must be available to NJDOL upon request

Notice Requirements

Employer Must:

  • Provide written notice of employee rights to all employees
  • Display required poster in conspicuous location
  • Poster available in multiple languages on NJDOL website

Official Poster:
https://www.nj.gov/labor/forms_pdfs/myleavebenefits/EARNED_SICK_LEAVE_POSTER.pdf

Retaliation Protections

According to N.J.S.A. 34:11D-5:

Prohibited Actions:

  • Employers cannot retaliate against employees for:
    • Using earned sick leave
    • Requesting earned sick leave
    • Inquiring about sick leave rights
    • Filing complaint with NJDOL

“Rebuttable Presumption”: If employer takes adverse action within 90 days of employee exercising rights, presumption of retaliation exists.

Potential Penalties:

  • Fines and civil penalties
  • Reinstatement of employee
  • Back pay and benefits
  • Other remedies

Relationship with Other Leave Policies

PTO Policies

Can Employer Use PTO to Satisfy Law?

According to NJDOL guidance: Yes, IF the PTO policy:

  • Provides at least as much leave
  • Allows use for all purposes covered by Earned Sick Leave Law
  • Has same or less restrictive notice and documentation requirements
  • Accrues at same or faster rate
  • Otherwise meets all requirements of the law

⚠️ Verification: Employers using PTO to satisfy law should have legal counsel review policy for compliance.

Relationship with FMLA/NJFLA

Earned sick leave is separate from:

  • Federal Family and Medical Leave Act (FMLA)
  • New Jersey Family Leave Act (NJFLA)

However, leave may run concurrently in some circumstances. Consult legal counsel for coordination of leaves.

Enforcement and Penalties

How to File Complaint:

  • Online: Through NJDOL website
  • Phone: (609) 292-2305
  • Email: Contact through NJDOL

Statute of Limitations: Complaints must generally be filed within 1 year of violation.

Potential Consequences for Violations: According to statute, violations may result in:

  • Back payment of sick leave wages
  • Civil penalties
  • Other remedies deemed appropriate
  • Enhanced penalties for willful violations

Resources

New Jersey Department of Labor:

⚠️ CRITICAL REMINDER: Earned sick leave law contains numerous specific requirements, limitations, and compliance obligations. This section provides general background only. Employers should:

  1. Review detailed NJDOL guidance materials
  2. Develop compliant written policies
  3. Implement tracking systems
  4. Train HR staff and managers
  5. Consult legal counsel for policy development

Information reflects sources available as of December 2025. Verify current requirements with NJDOL.

Workers' Compensation Overview for New Jersey

Legal Framework

Statutory Authority: N.J.S.A. 34:15-1 et seq. (New Jersey Workers’ Compensation Act)
Effective Date: Original act 1911; numerous amendments
Administering Agency: Division of Workers’ Compensation, New Jersey Department of Labor and Workforce Development

Contact Information:

General Coverage Requirements

According to New Jersey statutes, workers’ compensation coverage is generally:

Required For:

  • Virtually all employers with employees in New Jersey
  • No minimum number of employees for most employment relationships
  • Coverage required regardless of whether employer is in-state or out-of-state

May Be Exempt:

  • Independent contractors (if properly classified – see Part 1)
  • Certain casual employment (very limited)
  • Some specific categories defined by statute

⚠️ Note: Coverage determinations can be complex and fact-specific. Employers uncertain about obligations should consult Division of Workers’ Compensation or legal counsel.

Source: N.J.S.A. 34:15-7, 34:15-12
URL: https://www.nj.gov/labor/workerscompensation/

New Jersey’s Workers’ Compensation System

Type of System:

New Jersey operates a “competitive” workers’ compensation insurance system where employers may obtain coverage through:

  • Private insurance carriers licensed in New Jersey
  • Self-insurance (with approval)
  • State-authorized pools or assigned risk market

“No-Fault” System:

According to the statutory framework:

  • Benefits provided without need to prove employer fault
  • Employee generally gives up right to sue employer for work injuries
  • Benefits provided for injuries “arising out of and in the course of employment”

Coverage Standard: “Arising Out of and In the Course of Employment”

⚠️ Complex Legal Standard: This phrase defines compensable injuries but requires detailed factual analysis.

General Principles (Based on Case Law):

“Arising Out of Employment”:

  • Causal connection between injury and work
  • Work-related risk or activity

“In the Course of Employment”:

  • During work hours and work activities
  • At work location or work-related location
  • While performing work duties

⚠️ Both elements must generally be satisfied for coverage.

Remote Worker Coverage Considerations

⚠️ COMPLEX AND FACT-SPECIFIC: Coverage of home office injuries involves detailed factual analysis. The following is general background only.

General Legal Principles

According to case law and workers’ compensation principles, factors that may be considered include:

  • Whether employee was engaged in work activity at time of injury
  • Whether injury occurred in designated work area
  • Whether injury occurred during work hours
  • Whether activity was authorized or expected by employer
  • Whether activity served employer’s interests
  • Whether injury arose from employment-related risk

⚠️ Important: No single factor is determinative. Each case requires complete factual analysis.

Illustrative Scenarios (For General Understanding Only)

Scenario Category A: Work-Related Activities in Home Office

Example Situation 1: Employee trips over computer cables in designated home office while walking to retrieve work documents during scheduled work hours.

General Observations: This type of scenario may share some characteristics with situations that have been considered compensable in other contexts, such as:

  • Activity was work-related (retrieving work documents)
  • Occurred in designated work area (home office)
  • During scheduled work hours
  • Injury from work-related setup (computer equipment)

However, compensability would depend on complete factual analysis including:

  • Whether home office was officially designated by employer
  • Whether employer knew of or authorized home office setup
  • Nature of injury and relationship to work
  • Other specific circumstances

This is not a coverage determination. Actual determination would be made by Division of Workers’ Compensation based on all facts.

Example Situation 2: Employee develops carpal tunnel syndrome from extended computer use performing work duties over period of months.

General Observations: Repetitive stress injuries from work activities may potentially be compensable in some circumstances, but determination depends on factors such as:

  • Medical documentation establishing work-relatedness
  • Whether condition arose from employment activities
  • Duration and nature of work activities
  • Other contributing factors
  • Specific medical evidence

⚠️ This is general background only. Not a coverage determination. Consult medical professionals and Division of Workers’ Compensation.

Scenario Category B: Personal Activities at Home

Example Situation: Employee injured while preparing personal meal in kitchen during lunch break, not in home office area.

General Observations: Personal comfort activities unrelated to work duties may be less likely to be considered work-related, based on general principles. However, specific facts matter, including:

  • Whether employee was completely relieved of work duties
  • Whether kitchen is part of or near designated work area
  • Whether injury in any way related to work setup or requirements
  • Other circumstances

⚠️ This is general background only. Not a coverage determination.

Scenario Category C: Travel-Related

Example Situation: Employee injured in car accident while driving to required in-person meeting at employer’s office from home office.

General Observations: Travel to required work locations may potentially be compensable in some circumstances, depending on factors such as:

  • Whether travel was required for work
  • Whether within scope of employment
  • Nature of travel (commute vs. work-related travel)
  • Specific circumstances of injury

⚠️ General commuting is typically not covered. Work-related travel may be covered. Specific facts determine outcome.

⚠️Every workers’ compensation claim is unique and depends on its specific facts. Coverage determinations are made by New Jersey Division of Workers’ Compensation based on complete information. When in doubt, report the injury and file a claim.

Benefits Generally Available

According to New Jersey workers’ compensation statutes, benefits may include:

1. Medical Benefits

General Coverage (Based on Statute):

  • All reasonable and necessary medical treatment
  • Hospital care
  • Prescriptions
  • Physical therapy and rehabilitation
  • Medical equipment

Provider Selection:
According to New Jersey law, employer/carrier generally has right to select treating physician, with limited exceptions.

2. Temporary Disability Benefits

General Framework:

  • Wage replacement during recovery period
  • Typically 70% of average weekly wage
  • Subject to state maximum rates
  • Paid during period of temporary disability

3. Permanent Disability Benefits

Types May Include:

  • Permanent partial disability (scheduled or unscheduled)
  • Permanent total disability
  • Benefits based on nature and extent of permanent impairment

4. Death Benefits

If work-related injury results in death, benefits may be available to dependents.

⚠️ Note: Specific benefit amounts and eligibility depend on injury circumstances, medical evidence, and statutory formula. Consult Division of Workers’ Compensation or workers’ compensation attorney for specific benefit calculations.

Source: N.J.S.A. 34:15-12 through 34:15-17
URL: https://www.nj.gov/labor/workerscompensation/

Reporting and Claim Process

For Employees

General Process (Based on Official Guidance):

  1. Report Injury to Employer: • As soon as possible after injury • Statutory deadline: Within 90 days of injury or 90 days of becoming aware of work-relatedness • Late reporting may jeopardize claim
  2. Seek Medical Attention: • Obtain necessary medical treatment • Inform medical provider injury is work-related • Note: Employer/carrier generally selects provider
  3. File Claim: • File Claim Petition with Division of Workers’ Compensation if benefits denied or disputed • Statute of limitations: Generally 2 years from date of injury

⚠️ Time Limits Are Strict: Late reporting or late filing may result in denial. When in doubt, report and file promptly.

For Employers

General Obligations (Based on Statute and Regulations):

  1. Report to Workers’ Comp Carrier: • Report work injuries to insurance carrier promptly • Carrier must report to Division of Workers’ Compensation
  2. Required Form: • First Report of Injury form • Specific timeframes apply
  3. Do Not Retaliate: • Illegal to discriminate or retaliate against employee for filing workers’ comp claim

Source: N.J.S.A. 34:15-17
URL: https://www.nj.gov/labor/workerscompensation/

⚠️ Note: Employers should consult workers’ compensation insurance carrier and legal counsel regarding specific reporting obligations.

Penalties for Non-Compliance

For Employers Without Required Insurance:

According to New Jersey law, operating without required workers’ compensation insurance may result in:

  • Fines up to $5,000 for first 10 days
  • Additional fines for continued non-compliance
  • Stop-work orders
  • Personal liability for benefits
  • Criminal penalties in some cases

⚠️ Serious Consequences: Employers must maintain continuous coverage.

Best Practices for Remote Work (Recommendations Only)

The following are general recommendations compiled from various sources. They do not constitute legal requirements and may not be suitable for all situations. Consult legal counsel and safety professionals.

For Employers:

  • Consider providing ergonomic equipment or guidance
  • Consider documenting remote work location and setup
  • Consider developing clear injury reporting procedures
  • Consider safety training for remote workers
  • Consider clear policies on work hours and duties
  • Maintain workers’ compensation insurance covering remote workers
  • Consult with insurance carrier about remote work coverage

For Employees:

  • Consider setting up dedicated work area
  • Consider documenting work location and setup
  • Report injuries promptly to employer
  • Maintain clear work hour boundaries
  • Follow employer safety guidelines

Resources and Contacts

New Jersey Division of Workers’ Compensation:

For Legal Advice:

  • Workers’ compensation attorney
  • New Jersey State Bar Association Referral: (732) 249-5000

For Employers:

  • Insurance carrier or broker
  • Division of Workers’ Compensation employer resources

⚠️ FINAL CRITICAL REMINDER: Workers’ compensation is a highly specialized area involving complex medical, legal, and factual determinations. Coverage questions should be directed to:

  1. New Jersey Division of Workers’ Compensation for official determinations
  2. Licensed workers’ compensation attorney for legal advice
  3. Medical professionals for injury evaluation
  4. Insurance carrier for coverage questions

This section is for general background information only and should not be relied upon for coverage determinations or legal decisions.

Information reflects sources available as of December 2025 and may not include recent changes. Workers’ compensation law evolves through legislation and case decisions. Verify current requirements with official sources.

Other Leave Entitlements in New Jersey

New Jersey Family Leave Act (NJFLA)

Statutory Authority: N.J.S.A. 34:11B-1 et seq.

General Framework (Based on Statute):

According to New Jersey law, the NJFLA generally provides eligible employees with job-protected leave for qualifying family and medical reasons.

Key Provisions (General Information):

  • Leave Amount: Up to 12 weeks in 24-month period
  • Employer Coverage: Generally applies to employers with 30 or more employees
  • Employee Eligibility: Generally requires 1,000 hours of work in preceding 12-month period
  • Qualifying Reasons:
    • Birth or adoption of child
    • Care for family member with serious health condition
    • Care for family member who is victim of domestic/sexual violence

Family Member Definition: Includes child, parent, parent-in-law, sibling, spouse, domestic partner, civil union partner, or person with family-like relationship.

Job Protection: Generally provides right to return to same or equivalent position.

⚠️ Note: NJFLA is separate from federal FMLA but may run concurrently. Specific eligibility and coverage require detailed analysis.

Source: https://www.nj.gov/labor/fli/worker/state-fla/

New Jersey Family Leave Insurance (FLI)

Statutory Authority: N.J.S.A. 43:21-27 et seq.

General Framework:

New Jersey Family Leave Insurance provides wage replacement (not job protection) through employee-funded insurance program.

Key Features (Based on Official Guidance):

  • Benefit Amount: Up to 85% of average weekly wage (subject to maximum)
  • Duration: Up to 12 weeks
  • Funding: Employee payroll deductions
  • Qualifying Reasons:
    • Bonding with newborn, adopted, or foster child
    • Caring for family member with serious health condition

Relationship with NJFLA:

  • FLI provides wage replacement
  • NJFLA provides job protection
  • May be used together if employee qualifies for both

⚠️ Important: FLI and NJFLA are separate programs with different eligibility criteria.

Official Information:
https://www.myleavebenefits.nj.gov/labor/myleavebenefits/worker/fli/

Temporary Disability Benefits (TDB)

Statutory Authority: N.J.S.A. 43:21-25 et seq.

General Framework:

Provides wage replacement for employees unable to work due to non-work-related injury or illness.

Key Features (Based on Official Guidance):

  • Benefit Amount: Up to 85% of average weekly wage (subject to maximum)
  • Duration: Up to 26 weeks
  • Funding: Employee payroll deductions
  • Qualifying Reason: Disability preventing work (not work-related)

Waiting Period: Generally 7-day waiting period before benefits begin.

Not Covered By:

  • Independent contractors (if properly classified)
  • Self-employed (unless opt in)

⚠️ Note: TDB covers non-work injuries. Work injuries covered by Workers’ Compensation (see Part 3).

Official Information:
https://www.myleavebenefits.nj.gov/labor/myleavebenefits/worker/tdi/

New Jersey Security and Financial Empowerment (SAFE) Act

Statutory Authority: N.J.S.A. 34:11C-1 et seq.

General Framework:

According to statute, the SAFE Act generally provides unpaid leave for employees who are victims of domestic or sexual violence.

General Provisions:

  • Leave Amount: Up to 20 days in 12-month period
  • Employer Coverage: Generally 25 or more employees
  • Qualifying Uses:
    • Medical attention
    • Services from victim services organization
    • Counseling
    • Legal services and court proceedings
    • Relocation
    • Safety planning

Job Protection: Provides right to return to position.

⚠️ Note: Specific eligibility and requirements detailed in statute and regulations.

Source: N.J.S.A. 34:11C-1 et seq.

Federal Family and Medical Leave Act (FMLA)

While this is federal law, it applies to eligible employees in New Jersey.

Key Points:

  • Leave Amount: Up to 12 weeks unpaid leave in 12-month period
  • Employer Coverage: 50 or more employees
  • Employee Eligibility: 1,250 hours in preceding 12 months
  • Qualifying Reasons:
    • Birth/adoption/foster placement
    • Serious health condition of employee
    • Care for family member with serious health condition
    • Qualifying military exigency
    • Care for covered servicemember (up to 26 weeks)

Source: U.S. Department of Labor
URL: https://www.dol.gov/agencies/whd/fmla

⚠️ Coordination of Leaves: Multiple leave laws may apply simultaneously. Leaves may run concurrently in some circumstances. Employers should consult legal counsel for leave coordination and policy development.

Anti-Discrimination Laws in New Jersey

New Jersey Law Against Discrimination (NJLAD)

Statutory Authority: N.J.S.A. 10:5-1 et seq.
Administering Agency: New Jersey Division on Civil Rights
Official Website: https://www.nj.gov/oag/dcr/

General Scope

According to statute, the New Jersey Law Against Discrimination is described as one of the most comprehensive anti-discrimination laws in the United States.

General Prohibitions:

The NJLAD generally prohibits discrimination in employment based on numerous protected categories.

Protected Categories

According to N.J.S.A. 10:5-12, protected categories generally include:

  • Race
  • Creed (religion)
  • Color
  • National Origin
  • Ancestry
  • Age (18-70 for employment)
  • Marital Status
  • Civil Union Status
  • Domestic Partnership Status
  • Affectional or Sexual Orientation
  • Gender Identity or Expression
  • Sex (including pregnancy, breastfeeding)
  • Disability (including perceived disability)
  • Atypical Hereditary Cellular or Blood Trait
  • Genetic Information
  • Liability for Military Service
  • Refusal to Submit to Genetic Test
  • Refusal to Make Available Results of Genetic Test

⚠️ Broad Coverage: New Jersey’s protected categories are more extensive than federal law.

Prohibited Actions

According to statute, prohibited employment actions may include:

  • Refusal to hire
  • Termination
  • Discrimination in compensation, terms, conditions, or privileges of employment
  • Harassment
  • Retaliation for opposition to discrimination or participation in proceedings

Application to Remote Workers

General Principle:

Anti-discrimination protections generally apply to:

  • All covered employees
  • Regardless of work location
  • Remote workers have same protections as on-site workers

Considerations:

  • Harassment can occur via electronic communications
  • Workplace policies apply to remote work environments
  • Accessibility obligations may extend to remote work setups

Employer Size

According to NJLAD, coverage generally applies to employers with:

  • One or more employees for most discrimination claims
  • (Some specific provisions may have different thresholds)

⚠️ Broader than Federal Law: Federal Title VII typically requires 15+ employees; NJLAD generally applies to smaller employers.

Reasonable Accommodation

Disability:

According to NJLAD, employers generally must provide reasonable accommodation for qualified individuals with disabilities unless it creates undue hardship.

Examples of Accommodation May Include (Non-Exhaustive):

  • Modified work schedules
  • Ergonomic equipment
  • Remote work arrangements
  • Accessible technology
  • Other modifications enabling essential job functions

Religious:

Employers generally must reasonably accommodate religious beliefs and practices unless it creates undue hardship.

⚠️ Interactive Process: Accommodation generally requires good-faith interactive process between employer and employee.

Pregnancy and Breastfeeding

According to New Jersey law:

Pregnancy Discrimination:

  • Pregnancy-related discrimination prohibited
  • Reasonable accommodations may be required for pregnancy-related conditions

Breastfeeding:

  • N.J.S.A. 10:5-12 prohibits discrimination based on breastfeeding
  • Employers must provide reasonable accommodation for breastfeeding

⚠️ Note: New Jersey has specific lactation accommodation requirements separate from discrimination law.

Filing Complaints

New Jersey Division on Civil Rights:

Federal EEOC:

Dual Filing: Complaints filed with one agency may be cross-filed with the other.

Federal Anti-Discrimination Laws

In addition to NJLAD, federal laws apply in New Jersey:

Title VII of the Civil Rights Act of 1964:

  • Prohibits discrimination based on race, color, religion, sex, national origin
  • Applies to employers with 15+ employees

Age Discrimination in Employment Act (ADEA):

  • Prohibits age discrimination (40+)
  • Applies to employers with 20+ employees

Americans with Disabilities Act (ADA):

  • Prohibits disability discrimination
  • Requires reasonable accommodation
  • Applies to employers with 15+ employees

Pregnancy Discrimination Act:

  • Prohibits pregnancy discrimination
  • Amendment to Title VII

Genetic Information Nondiscrimination Act (GINA):

  • Prohibits discrimination based on genetic information

Source: U.S. Equal Employment Opportunity Commission
URL: https://www.eeoc.gov/

⚠️ CRITICAL REMINDER: Anti-discrimination law is complex and fact-specific. Employers should:

  1. Develop comprehensive anti-discrimination policies
  2. Provide training to managers and employees
  3. Establish complaint procedures
  4. Respond promptly to complaints
  5. Consult legal counsel for compliance and investigations

Discrimination violations can result in significant liability including compensatory damages, punitive damages, attorneys’ fees, and other remedies.

Data Privacy Considerations

General Privacy Considerations for Remote Workers

Monitoring and Surveillance:

According to general legal principles:

  • Employers may have right to monitor work activities
  • Notice and consent requirements may apply
  • Privacy expectations may be limited for work-provided equipment
  • Employee privacy rights may be stronger for personal devices
  • State laws vary on monitoring requirements

Best Practices (Not Legal Requirements):

  • Clear written policies on monitoring
  • Notice to employees of monitoring practices
  • Limitations on monitoring of personal activities
  • Compliance with applicable federal and state laws

Employee Personal Information

Data Security:

Employers generally have obligations to:

  • Protect employee personal information
  • Implement reasonable security measures
  • Comply with data breach notification requirements
  • Follow applicable privacy laws

Social Security Number Protection:

New Jersey has specific requirements regarding Social Security number protection.

Source: N.J.S.A. 56:8-164 (Identity Theft Prevention Act)

Federal Privacy Laws

Fair Credit Reporting Act (FCRA):

  • Applies to background checks and consumer reports
  • Requires notice and consent for background checks
  • Imposes specific obligations for adverse actions

Health Insurance Portability and Accountability Act (HIPAA):

  • Applies to certain health information
  • Generally applies to health plans, providers, clearinghouses
  • Employers subject to HIPAA if they offer self-insured health plans or perform certain functions

Genetic Information Nondiscrimination Act (GINA):

  • Prohibits use of genetic information in employment
  • Restricts collection of genetic information

Cybersecurity Considerations

Remote Work Security Issues:

Employers should consider:

  • Secure remote access to systems
  • Virtual private networks (VPNs)
  • Encryption of data
  • Device security policies
  • Training on phishing and security threats
  • Incident response plans

⚠️ Note: Cybersecurity requirements vary by industry. Consult IT security professionals and legal counsel.

Tax Information for New Jersey

New Jersey State Income Tax

General Framework

Official Agency: New Jersey Division of Taxation
Website: https://www.nj.gov/treasury/taxation/
Phone: (609) 292-6400

Tax Structure: New Jersey has a progressive state income tax with rates ranging from 1.4% to 10.75% depending on income level.

Sourcing Rules for Remote Workers

⚠️ Complex Issue: Determining which state’s income tax applies to remote workers can be complicated.

General Principles (Based on Tax Authority Guidance):

For New Jersey Residents:

  • New Jersey residents generally pay NJ income tax on all income regardless of where earned
  • May receive credit for taxes paid to other states

For Non-Residents:

  • Generally subject to NJ tax on income from New Jersey sources
  • Income typically sourced to state where services are performed

“Convenience of the Employer” Rule

⚠️ Important Development: New Jersey adopted a “Convenience of the Employer” rule in 2023.

General Framework (Based on NJ Division of Taxation Guidance):

According to legislation enacted in July 2023 (P.L.2023, c.125), retroactive to January 1, 2023:

Application: If an employee works remotely for a New Jersey employer from certain states, their income may be sourced to New Jersey (and subject to NJ tax withholding) if they work remotely for their own convenience rather than the employer’s necessity.

Currently Applies To Residents Of:

  • Delaware
  • Nebraska
  • New York

Does NOT Apply To:

  • Pennsylvania residents (due to reciprocal agreement)
  • Connecticut residents (due to reciprocity of CT’s rule)

What This Means: Wages of DE, NE, or NY residents working remotely for NJ employers may be subject to NJ income tax withholding unless the remote work is due to employer’s necessity.

Source: New Jersey Division of Taxation
URL: https://www.nj.gov/treasury/taxation/conveniencerulefaq.shtml

⚠️ Employer Obligation: NJ employers should withhold NJ income tax for affected remote employees in these states.

Reciprocal Agreement with Pennsylvania

New Jersey – Pennsylvania Reciprocity:

According to reciprocal agreement:

  • NJ residents working in PA: Taxed only by NJ
  • PA residents working in NJ: Taxed only by PA
  • Employer withholds for state of residence, not work state

Employee Certificate Required: Employees must file certificate of non-residence with employer.

Source: NJ Division of Taxation
URL: https://www.nj.gov/treasury/taxation/

Federal Income Tax

Employer Withholding: Employers must withhold federal income tax regardless of work location.

Remote Work Location: Federal income tax withholding generally does not change based on remote work location.

Source: Internal Revenue Service
URL: https://www.irs.gov/

Unemployment Insurance and Disability Contributions

New Jersey Unemployment Insurance:

  • Employers subject to NJ unemployment insurance for employees working in NJ
  • Employee wage withholdings required
  • Employer contributions required

Temporary Disability Insurance (TDI):

  • Employee-funded through payroll deductions
  • Employers must withhold and remit

Family Leave Insurance (FLI):

  • Employee-funded through payroll deductions
  • Employers must withhold and remit

Source: NJ Department of Labor – Division of Employer Accounts
URL: https://www.nj.gov/labor/ea/

Tax Nexus for Out-of-State Employers

⚠️ Complex Issue: Having remote employees in New Jersey may create tax obligations for out-of-state employers.

Corporation Business Tax (CBT):

According to NJ Division of Taxation:

  • Out-of-state corporation with employee working in NJ may have nexus
  • May trigger CBT filing and payment obligations
  • Even if no receipts from NJ, minimum tax may apply

COVID-19 Relief Ended: Temporary pandemic-era relief from nexus expired October 1, 2021.

Source: NJ Division of Taxation
URL: https://www.nj.gov/treasury/taxation/

⚠️ Employer Consideration: Out-of-state employers with NJ remote workers should consult tax professionals about potential NJ tax obligations.

Sales and Use Tax

Having remote employees may create sales tax nexus in some circumstances.

⚠️ Consult Tax Professional: Sales tax nexus rules are complex and fact-specific.

Employee Tax Considerations

Multi-State Issues:

Remote workers may face:

  • Filing requirements in multiple states
  • Credits for taxes paid to other states
  • Allocation of income between states
  • Different state tax rates and rules

Home Office Deduction:

Federal tax law restrictions on employee home office deductions:

  • Generally not available for W-2 employees (under current federal law)
  • Self-employed may qualify under different rules

⚠️ Consult Tax Professional: Individual tax situations are highly specific.

Record-Keeping for Tax Purposes

Employers Should Maintain:

  • Records of where employees perform work
  • Time tracking for multi-state employees
  • Withholding documentation
  • Tax payments and filings

Employees Should Track:

  • Work locations if working in multiple states
  • Days worked in each location
  • Business expenses (if applicable)

Resources for Tax Information

New Jersey Division of Taxation:

Internal Revenue Service:

Professional Resources:

  • Certified Public Accountants (CPAs)
  • Enrolled Agents
  • Tax Attorneys

⚠️ FINAL TAX DISCLAIMER: Tax law is extremely complex and changes frequently. State and federal tax rules interact in complicated ways. Multi-state remote work creates additional complexity.

This section provides general background information only. It is NOT:

  • Tax advice for your specific situation
  • A substitute for professional tax guidance
  • Comprehensive coverage of all tax issues
  • A guarantee of tax treatment

Consult qualified tax professionals for:

  • Tax planning
  • Tax preparation and filing
  • Multi-state tax issues
  • Business tax obligations
  • Individual tax situations

Tax penalties can be severe. Professional guidance is essential.

Remote Work Considerations for New Jersey

Legal Compliance Framework for Remote Workers

Determining Applicable Laws

⚠️ Complex Issue: Determining which state’s laws apply to remote workers involves multiple considerations.

General Principles:

According to typical legal frameworks:

For Wage and Hour:

  • Laws of state where work is physically performed generally apply
  • Worker in New Jersey → NJ wage and hour laws generally apply
  • Multi-state work may require compliance with multiple jurisdictions

For Leave Laws:

  • Generally apply based on work location
  • Some exceptions and complexities exist
  • Employer location may be relevant in some circumstances

For Workers’ Compensation:

  • State where work is performed typically has jurisdiction
  • Multi-state situations can be complex
  • Insurance coverage must include all work locations

For Tax:

  • Multiple states’ tax laws may apply
  • Income sourcing rules vary by state
  • “Convenience of employer” rules in some states add complexity

⚠️ Multi-State Employers: Should consult legal and HR counsel for comprehensive compliance strategy.

Developing Remote Work Policies

Recommended Policy Elements (Not Legal Requirements):

Employers may consider addressing:

1. Eligibility and Approval:

  • Which positions eligible for remote work
  • Approval process
  • Trial periods
  • Performance expectations

2. Work Location:

  • Approved work locations
  • Notification requirements for location changes
  • Out-of-state work restrictions or approvals
  • Home office safety standards

3. Work Hours and Availability:

  • Core hours or availability expectations
  • Overtime approval procedures
  • Time tracking requirements
  • Response time expectations

4. Equipment and Technology:

  • Company-provided equipment
  • Personal device usage policies
  • Technical support
  • Return of equipment upon separation

5. Data Security:

  • Security requirements
  • VPN usage
  • Confidentiality obligations
  • Cybersecurity training

6. Expense Reimbursement:

  • Home office expenses
  • Internet and phone costs
  • Other work-related expenses
  • Reimbursement procedures

7. Communication and Collaboration:

  • Meeting attendance expectations
  • Collaboration tools
  • Performance monitoring
  • Manager check-ins

8. Health and Safety:

  • Ergonomic guidance
  • Workers’ comp coverage
  • Injury reporting procedures
  • Home office self-assessment

9. Termination of Remote Work:

  • Circumstances requiring return to office
  • Notice requirements
  • Performance-based decisions

⚠️ Policy Development: Should be done in consultation with legal counsel to ensure compliance with applicable laws.

Classification Considerations

⚠️ Critical: See Part 1 for detailed discussion of employee classification.

Key Reminders for Remote Workers:

  • Classification as employee vs. independent contractor does not change based on remote vs. on-site work
  • ABC Test (see Part 1) applies to remote workers
  • Factors like control, place of business, and independent business operation should be carefully evaluated
  • Misclassification consequences apply equally to remote workers

Wage and Hour Compliance

Time Tracking:

For non-exempt remote workers:

  • Accurate time tracking is essential
  • Employers must track all hours worked
  • After-hours work must be compensated
  • Clear policies on unauthorized overtime

Recommended Practices (Not Legal Requirements):

  • Electronic time-tracking systems
  • Clear instructions on clocking in/out
  • Policies on meal breaks
  • Training on time tracking compliance

Multi-State Compliance Challenges

⚠️ Highly Complex: Employing remote workers in multiple states creates significant compliance challenges.

Issues to Consider:

1. Registration and Licensing:

  • May need to register as employer in each work state
  • State tax registrations
  • Unemployment insurance accounts
  • Workers’ compensation coverage

2. Varying State Laws:

  • Different minimum wages
  • Different overtime rules
  • Different leave requirements
  • Different tax rules

3. Payroll Compliance:

  • Withholding correct state taxes
  • Complying with payment frequency requirements
  • Providing required wage statements

4. Workers’ Compensation:

  • Coverage in all work states
  • Proper premium allocation
  • Claims handling across states

5. Unemployment Insurance:

  • Determining which state has jurisdiction
  • SUTA dumping prevention
  • State-specific eligibility rules

⚠️ Professional Guidance Essential: Multi-state employment requires comprehensive professional guidance from attorneys, tax professionals, and HR consultants.

Remote Work Technology and Security

Cybersecurity Considerations:

Employers should consider:

  • Secure remote access solutions (VPN)
  • Multi-factor authentication
  • Encryption of sensitive data
  • Regular security updates
  • Phishing and social engineering training
  • Incident response procedures
  • Compliance with industry-specific regulations (HIPAA, PCI-DSS, etc.)

Acceptable Use Policies:

  • Clear policies on personal use of work devices
  • Monitoring and privacy expectations
  • Prohibited activities
  • Consequences of violations

⚠️ IT Security: Consult cybersecurity professionals for comprehensive security program.

Performance Management for Remote Workers

Considerations:

  • Clear performance expectations and metrics
  • Regular check-ins and feedback
  • Documentation of performance issues
  • Consistency with on-site employees
  • Compliance with anti-discrimination laws

⚠️ Avoid Discrimination: Performance management should be based on objective criteria, not stereotypes or assumptions about remote workers.

Accommodations for Remote Workers

Disability Accommodations:

According to ADA and NJLAD principles:

  • Accommodation obligations apply to remote workers
  • Remote work itself may be a reasonable accommodation
  • Additional accommodations may be needed in home office
  • Interactive process required

Religious Accommodations:

  • May include flexible scheduling for religious observances
  • Limitations on work on religious holidays
  • Other modifications as needed

Pregnancy Accommodations:

  • May be required under New Jersey law
  • Can include modified duties, schedule changes, etc.

⚠️ Accommodation Requests: Should be handled through interactive process with legal counsel guidance.

International Remote Work

⚠️ Extremely Complex: Having remote workers in other countries involves significant legal, tax, and immigration complexities beyond the scope of this guide.

Issues May Include:

  • Immigration and work authorization
  • Local employment laws
  • International tax obligations
  • Benefits and social insurance
  • Data privacy regulations (GDPR, etc.)
  • Permanent establishment risks

⚠️ International Employment: Requires specialized legal and tax counsel with international expertise.

Resources

Official Government Agencies

New Jersey Department of Labor and Workforce Development

Main Website: https://www.nj.gov/labor/
General Phone: (609) 292-2323

Key Divisions:

Division of Wage and Hour Compliance:

Division of Workers’ Compensation:

Division of Employer Accounts:

My Work Rights:

My Leave Benefits:

New Jersey Division on Civil Rights

Website: https://www.nj.gov/oag/dcr/
Phone: (609) 292-4605
Topics: Discrimination complaints, NJLAD enforcement

New Jersey Division of Taxation

Website: https://www.nj.gov/treasury/taxation/
Phone: (609) 292-6400
Topics: Income tax, employer withholding, business taxes

Federal Agencies

U.S. Department of Labor

Wage and Hour Division:

Occupational Safety and Health Administration (OSHA):

Internal Revenue Service

Website: https://www.irs.gov/
Phone: 1-800-829-1040 (individuals), 1-800-829-4933 (businesses)
Topics: Federal taxes, worker classification, withholding

Equal Employment Opportunity Commission

Website: https://www.eeoc.gov/
Phone: 1-800-669-4000
Topics: Federal anti-discrimination laws, filing complaints

Professional Organizations and Resources

New Jersey State Bar Association

Website: https://www.njsba.com/
Phone: (732) 249-5000
Attorney Referral Service Available

New Jersey Society of Certified Public Accountants

Website: https://www.njcpa.org/
Topics: Tax professionals, accounting resources

Society for Human Resource Management (SHRM)

Website: https://www.shrm.org/
Topics: HR best practices, compliance resources

Legal and Regulatory Resources

New Jersey Statutes:
https://lis.njleg.state.nj.us/nxt/gateway.dll?f=templates&fn=default.htm

New Jersey Administrative Code:
https://www.nj.gov/oal/

New Jersey Courts:
https://www.njcourts.gov/

Important Forms and Documents

From NJ Department of Labor:

  • Minimum Wage Chart: Available on NJDOL website
  • Earned Sick Leave Poster: Required workplace posting
  • Worker Classification Questionnaire: For classification determinations
  • Workers’ Compensation Forms: Claim forms and employer reports

From IRS:

  • Form W-4: Employee withholding certificate
  • Form I-9: Employment eligibility verification
  • Form 1099-NEC: Nonemployee compensation reporting

⚠️ Verification: Websites and phone numbers change. Verify contact information on official government websites before use. When in doubt, search for official agency name to find current information.

Frequently Asked Questions

General Remote Work Questions

Q1: If I work remotely from New Jersey for an out-of-state employer, which state’s employment laws apply?

Generally, wage and hour laws of the state where work is physically performed apply. If you work from New Jersey, New Jersey wage and hour laws would typically apply, including minimum wage, overtime, and earned sick leave requirements. However, specific situations can be complex, especially for multi-state work. Tax rules may differ. Consult employment counsel for your specific situation.

Q2: Can my employer require me to work remotely?

Generally, yes, unless you have a contract providing otherwise. Employers typically have discretion to determine work location. However, required accommodations (disability, religious) or other legal protections may apply in some circumstances. Consult employment counsel if you have concerns about a required remote work arrangement.

Q3: Can my employer require me to return to the office and end remote work?

Generally, yes, unless you have a contract guaranteeing remote work or have a legal right to accommodation. Employers generally have discretion over work location. If you believe you need remote work as a disability or religious accommodation, you should engage in the interactive accommodation process. Consult employment counsel for specific situations.

Classification Questions

Q4: How do I know if I’m properly classified as an independent contractor?

According to New Jersey law, the ABC Test applies (see Part 1). All three prongs must be satisfied for independent contractor status:

  • (A) Freedom from control
  • (B) Work outside usual business or outside all places of business
  • (C) Independently established business

If you have questions about your classification, you can:

  • Review the detailed analysis in Part 1
  • Contact NJ Division of Employer Accounts: (609) 292-2321
  • Consult an employment attorney

Misclassification may affect your rights to benefits and protections. Professional guidance is recommended.

Q5: Can I work as an independent contractor from home for just one client?

Working for only one client makes it more difficult to satisfy Prong C of the ABC Test (independently established business). According to New Jersey Supreme Court guidance, you generally need to demonstrate an independent business that exists beyond the single relationship. Having multiple clients is not absolutely required, but exclusive work for one client raises classification concerns. Consult legal counsel for specific situation analysis.

Wage and Hour Questions

Q6: Does New Jersey require overtime pay for working more than 8 hours in a day?

No. New Jersey does not have daily overtime requirements. Overtime is calculated on a weekly basis only. Non-exempt employees generally receive overtime (1.5x regular rate) for hours worked over 40 in a workweek. Working 10 hours in one day does not automatically trigger overtime unless weekly hours exceed 40.

Q7: Can my employer require me to work overtime if I’m a remote worker?

If you’re classified as non-exempt, your employer can generally require you to work overtime (subject to any contractual limitations). However, the employer must pay you overtime rate (1.5x regular pay) for hours over 40 per week. If you’re classified as exempt, different rules apply. Classification questions should be reviewed with legal counsel.

Q8: Am I entitled to meal breaks when working from home?

New Jersey does not require employers to provide meal or rest breaks to adult employees (18+), whether working on-site or remotely. If your employer voluntarily provides breaks, federal rules about whether they must be paid may apply (short breaks generally paid; meal periods 30+ minutes may be unpaid if completely relieved of duties).

Sick Leave Questions

Q9: Does earned sick leave apply if I work remotely from New Jersey?

Generally, yes. According to NJDOL guidance, employees who work in New Jersey are covered by the Earned Sick Leave Law. If you perform work from a location in New Jersey, you would typically be covered. Specific situations should be verified with NJDOL.

Q10: Can I use earned sick leave if my child’s school closes due to weather?

According to official guidance, the law generally allows use of earned sick leave when school closes due to a public health emergency declared by a public official. Regular snow days or weather closures without a public health emergency declaration typically would not qualify. For specific situations, consult NJDOL guidance on permitted uses.

Workers’ Compensation Questions

Q11: If I’m injured while working from home, is it covered by workers’ compensation?

This is highly fact-specific. Generally, workers’ compensation may cover injuries that “arise out of and in the course of employment.” Factors include whether you were engaged in work activities, whether injury occurred in your work area, during work hours, and other circumstances. Not all home injuries while working remotely are covered. Report any work-related injury to your employer immediately and consult workers’ compensation counsel if claim is disputed. See Part 3 for detailed discussion.

Q12: Do I need to report a home office injury to my employer?

Yes. If you believe an injury is work-related, you should report it to your employer as soon as possible. New Jersey law generally requires reporting within 90 days. Even if you’re uncertain whether the injury is work-related, it’s better to report it promptly. Late reporting may jeopardize a potential claim.

Tax Questions

Q13: If I work from New Jersey for a New York employer, where do I pay taxes?

This is complex. Generally:

  • You likely pay New Jersey tax as a resident on all income
  • New York may claim tax on income earned from NY employer under “convenience of employer” rule
  • New Jersey provides credit for taxes paid to other states
  • The interaction can result in taxes in both states

New Jersey’s reciprocal “convenience of employer” rule (adopted 2023) affects NY residents working for NJ employers. Tax situations are highly individual. Consult a licensed tax professional (CPA or enrolled agent) familiar with multi-state taxation.

Q14: Can I deduct my home office expenses on my taxes?

For W-2 employees, the federal home office deduction is generally NOT available under current federal tax law (suspended through 2025 by Tax Cuts and Jobs Act). If you’re self-employed (properly classified as independent contractor), different rules may allow home office deductions if you meet IRS requirements. Consult a tax professional for your specific situation.

Multi-State Questions

Q15: Can I work remotely from a different state while on vacation?

This depends on your employer’s policies and may create compliance issues. Working from another state can:

  • Create tax obligations in that state
  • Trigger employer registration requirements
  • Affect which state’s employment laws apply
  • Create workers’ compensation coverage issues

Many employers have policies restricting or requiring approval for out-of-state work. Check your employer’s policy and consider legal/tax implications. Consult HR and professional advisors for extended out-of-state work.

Q16: My company is in California but I work from New Jersey. Which state’s minimum wage applies?

Generally, New Jersey minimum wage would apply because you physically perform work in New Jersey. Wage and hour laws typically apply based on work location, not employer location. You should be paid at least New Jersey’s minimum wage ($15.92/hour for most employees in 2026). If you work in multiple states, compliance with multiple wage laws may be required. Consult employment counsel for specific situations.

Discrimination and Accommodation Questions

Q17: Can my employer deny my request to work remotely?

Generally, yes, unless:

  • You have a contract guaranteeing remote work
  • Remote work is needed as a reasonable accommodation for disability
  • Remote work is needed as a religious accommodation
  • Denial is discriminatory

If you need remote work as an accommodation, you should make a formal request and engage in the interactive process. Consult employment counsel if your accommodation request is denied.

Q18: If I experience harassment via email or video calls while working remotely, is that covered by anti-discrimination laws?

Yes. Anti-discrimination laws, including the New Jersey Law Against Discrimination, generally apply to remote work environments. Harassment can occur through electronic communications. If you experience harassment, follow your employer’s complaint procedures and consider consulting employment counsel. Document incidents and preserve communications.

Leave Questions

Q19: Can I use New Jersey Family Leave (NJFLA) if I work remotely?

If you meet eligibility requirements (working for covered employer, sufficient hours worked), NJFLA generally applies regardless of whether you work remotely or on-site. Eligibility depends on factors like employer size, hours worked, and nature of leave need. Consult NJDOL or employment counsel for specific eligibility questions.

Q20: Do I pay into Temporary Disability Insurance and Family Leave Insurance if I work remotely from New Jersey?

Generally, yes. If you work in New Jersey, you typically are subject to the payroll deductions for TDI and FLI. These are employee-funded programs through payroll contributions. Check your pay stub for these deductions. Questions about contributions should be directed to your employer or NJ Department of Labor.

Additional Questions?

For questions not answered here:

  • Review relevant sections of Parts 1-5
  • Consult official agency resources (see Resources section)
  • Contact appropriate government agency for your question
  • Seek professional guidance from attorneys, CPAs, or HR consultants

Others

New York
Pennsylvania
Connecticut
Delaware
Maryland

Legal Disclaimer: This guide provides general background information only and does not constitute legal, tax, or professional advice. Employment laws are complex and subject to interpretation. Consult licensed legal counsel and official state agencies for guidance specific to your situation.