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New Jersey Updates

Secure Choice Savings Program Act

 
Beginning April 1, 2026, employers with 10 or more employees must register for and participate in the New Jersey Secure Choice Retirement Savings program. Employers with fewer than 10 employees may participate voluntarily.
 
The amendment also permits employees to change their contribution levels at any time and employers must implement that change no less than once per calendar quarter.
 
You can learn more at this link: https://www.nj.gov/treasury/securechoiceprogram/
 
FrankCrum sponsors a Multiple Employer 401k Plan that has a Master Plan Document available for our clients to adopt onto. If you would like to review your plan options and discuss our 401K program, please send an email to 401K@frankcrum.com.

 

 

 

Previous Updates

Notice of Employment Separation

As noted in a previous FrankCrum News Alert, New Jersey employers must submit complete worker separation information directly to the NJ Department of Labor (NJDOL). If this information isn’t provided within seven days of an employee’s separation, the NJDOL may issue monetary penalties. FrankCrum can submit worker separation information directly to the NJDOL for you. What to Do?

  • Submit a Notice of Employment Separation Form to your payroll representative and copy UnemploymentClaims@frankcrum.com.

    Be sure to include:
    • The employee’s job title and job duties
    • Work schedule
    • Immediate supervisor’s name, title, and phone number
    • The employee’s email address

  • Alternatively, you can process the termination on MyFrankCrum.com and email the additional details to UnemploymentClaims@frankcrum.com right away.

Don’t Forget the BC-10! You must give each employee a printed copy of the benefit instructions (Form BC-10) when they separate—whether it’s permanent or temporary. You do not need to send the completed BC-10 form to the Division. Questions? Contact FrankCrum’s unemployment department at UnemploymentClaims@frankcrum.com.

 

 

Expands Family Leave Law

The New Jersey Family Leave Act (NJFLA) allows eligible employees of covered employers to take up to 12 weeks of unpaid, job-protected leave within a 24-month period to care for a family member or a person equivalent. Signed into law on January 17, Assembly Bill 3451 amends the NJFLA to expand employee eligibility and employer coverage. It will also strengthen employee reinstatement rights under New Jersey's temporary disability leave and paid family leave law. It will take effect six months after its passage, which is projected to be July 17, 2026.

  Current Law Amended Law
Employee Eligibility Employees are eligible for NJFLA leave if they have:
  • Worked for a covered employer for at least 12 months; and
  • Worked at least 1,000 base hours during the immediately preceding 12-month period.
  • Worked for a covered employer for at least three months; and
  • Worked at least 250 base hours during the immediately preceding 12-month period.
Employer Coverage Employers in New Jersey are covered under the NJFLA if they: Employ 30 or more employees for each working day during each of 20 or more workweeks in the current or preceding calendar year. Employ 15 or more employees for each working day during each of 20 or more workweeks in the current or preceding calendar year.

Former New Jersey Gov. Phil Murphy, who signed the bill into law, estimated that more than 400,000 additional workers will be eligible for family leave under the amendments. AB 3451 also amends New Jersey's temporary disability leave and paid family leave law to clarify employee reinstatement rights. It provides that an employee who received temporary disability benefits or paid family leave is entitled to reinstatement to the same or an equivalent position, with the same or equivalent seniority, status, benefits, pay, and other terms and conditions of employment. The employee will retain all rights under any applicable layoff and recall system, including a system under a collective bargaining agreement, as if the employee had not taken the leave. The amendments to the temporary disability leave and paid family leave law also provide that employees may use paid family leave, earned sick leave, and temporary disability benefits in any order. But employees may not receive more than one type of paid leave at the same time during any period.

 

 

Captive Audience Meetings

 
Effective December 2, 2025, current restrictions in New Jersey against captive audience meetings are amended to include mandatory meetings held by an employer to communicate its opinion about an employee's decision to join or support a labor organization.
The amendments include exceptions allowing meetings for certain purposes and anti-retaliation protections for employees.

https://www.njleg.state.nj.us/bill-search/2024/A4429/bill-text?f=A4500&n=4429_S3

 

 

 

Family Leave Insurance

The New Jersey DOL requires employers to post their updated poster: PR-2 (9-25).pdf
 
NJ Family Leave Insurance provides cash benefits to employees in New Jersey who are unable to work because they need to bond with a new child, care for a family member with a physical or mental health condition, or handle certain matters related to domestic or sexual violence.
 
You can read more here.
 

 

Pay Transparency

New Jersey has released FAQs regarding its pay transparency law. Below are key clarifications provided:
 
Must an employer have an employee in New Jersey to be covered by the Pay Transparency law?
 
No. Under the Pay Transparency law, an employer may still be covered if it has 10 or more employees over 20 calendar weeks, whether those employees work inside or outside of New Jersey. However, if none of the employer’s employees work inside New Jersey, the employer will only be covered if it does business in New Jersey or takes applications for employment within New Jersey.
 
Are nationwide job postings included under the [New Jersey] Pay Transparency law?
 
It depends. If the employer has the minimum number of employees to be covered by the Pay Transparency law and the employer does business, employs persons, or takes applications for employment within New Jersey, then yes, its job postings must comply with the law, even if the employer is advertising nationally or accepting applications from anywhere in the country.
 
Penalties for employers violating the Pay Transparency law.
 
Any employer who violates the Pay Transparency law can be assessed a penalty up to $300 for the first violation, and up to $600 for each subsequent violation.
Under the law, if an employer publishes the same job posting in multiple places at the same time – for example, in a newspaper, job search websites, and social media – NJDOL must consider these posts collectively as one violation of the law.
 
However, if an employer advertises multiple roles in its organization at the same time, NJDOL will assess one penalty for each role where the job posting fails to comply with the law.
 
 

 

Pay Transparency

Effective June 1, 2025, New Jersey employers with 10 or more employees must include a pay range and general description of benefits and other compensation in any posting advertising a job or transfer opportunity. Covered employers must also inform current employees of promotion opportunities before making a promotion decision.
 

 

Commissions Are Wages

The NJ Supreme Court unanimously ruled that the definition of commission “always meets the definition of ‘wages’ under the Wage Payment Law (WPL)” and reversed the decision by the appellate court that commissions were a supplementary incentive to an employee’s wages. This ruling imposes stricter compliance requirements on employers by classifying commissions as wages rather than ancillary income.

NJ employers now face an increased risk of wage and hour lawsuits and should carefully review their commission agreements to ensure full compliance with state laws.
 


AI Guidance

New Jersey recently released guidance on their AI-driven bias laws and created an agency, the Civil Rights Innovation Lab, to enforce AI laws in NJ.

 

2025-0108_DCR-Guidance-on-Algorithmic-Discrimination.pdf

 


Pay Transparency

Effective June 1, 2025, New Jersey employers with 10 or more employees must include a pay range and general description of benefits and other compensation in any posting advertising a job or transfer opportunity. Covered employers must also inform current employees of promotion opportunities before making a promotion decision.

Stay tuned for additional information in the new year.
 
 

Disability and Leave Rates

 
Effective January 1, 2025:
 
  • The 2025 Temporary Disability Insurance(TDI) rate is 0.23% of the first $165,400 in wages. TDI's maximum employee contribution is $380.42 per year.
  • The 2025 Family Leave Insurance (FLI) rate will be 0.33% of the first $165,400 in wages. FLI maximum employee contribution $545.82 per year.

 

Division of Employer Accounts | Rate information, contributions, and due dates


Additional Protections for Immigrant Workers

The NJ acting governor has signed into law civil penalties that will be levied against any employer who discloses or threatens to disclose an employee’s immigration status to conceal their violations of state wage, benefit, tax, and other employment laws. These civil penalties will be in addition to any existing penalties for the underlying employment violations.
 

2869_U1.PDF (state.nj.us)

 

Office of the Governor | Acting Governor Way Signs Legislation Broadening Protections for Immigrant Workers (nj.gov)

 

Civil Rights Laws Apply to Out-of-State Remote Workers

NJ’s Division on Civil Rights issued Guidance on Discrimination and Out-of-State Remote Workers, confirming that the state’s Law Against Discrimination (LAD)—which prohibits employers from discriminating on the basis of actual or perceived sexual orientation, gender, gender identity, gender expression, age, race, color, national origin, ancestry, religion, disability, and other protected characteristics—extends to remote employees of NJ employers who reside and work outside of NJ. But, the Guidance says that while the LAD “does not necessarily extend to individuals who work for an employer based” in a state other than NJ, federal laws and the laws of other states may also offer employment-based protections against discrimination.

 

Family Leave Act

The New Jersey Family Leave Act (NJFLA) is New Jersey’s state law that provides job protection for family leave. It provides job protection for eligible employees of covered employers to care for a family member, or someone who is the equivalent of family. 
 
The NJ Division of Civil Rights has published FAQs on the Family Leave Act to provide more clarity. Guidance includes how the FLA interacts with the federal FMLA, company paid leave, and other company benefits.
 

NJFLA FAQ - New Jersey Office of Attorney General (njoag.gov)



Family Leave Contribution Rate

 
Under the NJ Family Leave Act (NJFLA), an employer with 30 or more employees must provide an eligible employee with up to 12 weeks of monetary benefits when an employee is out of work to bond with a newborn child, a newly adopted child, or a newly placed foster child; to care for a family member with a serious health condition; for reasons related to domestic or sexual violence; or to care for a family member for reasons related to a communicable disease. Leave Insurance is paid for by a mandatory payroll tax by employees only.
 
The employee contribution rate will increase from .06% to .09% effective 01/01/2024.
 



Amends Unemployment Insurance Notice Requirement

Effective July 31, 2023, when an employer provides the required notice ( Form BC-10 ) to a separated employee disclosing the date on which unemployment begins, the employer must immediately provide that disclosed notice to the Division of Unemployment together with specific information required by the Division. 
 
Click here for the Form BC-10.
 
Additionally, a covered employer must conspicuously post an unemployment compensation and temporary disability benefits notice to employees.
 
Click here to access the employer poster packet.


Employment of Minors

All New Jersey minors are required to have working papers as a condition of employment. A new law — A-4222 effective June 1, 2023, significantly changes how minors get working papers and moves oversight and administration to the NJDOL.
 
The new process can be accessed online on June 1st. Per the New Jersey School Boards Association, here is how the process is expected to work:

 

  1. Minors and their employers each go to MyWorkingPapers.nj.gov to start.
  2. The employer is emailed a unique eight-digit code they share with every minor they hire.
  3. The minor fills out their working papers application online, entering the employer’s unique eight-digit code. The minor adds their caregiver’s name and email address.
  4. The employer is emailed when a minor applies for working papers using the unique eight-digit code assigned to their business. The employer clicks the link in the email to add job duties and hours and gives their OK.
  5. The caregiver is emailed that a working papers application has been started by a minor in their care. The caregiver clicks the link in the email to give their OK and provide the minor’s proof of age.
  6. The minor and their employer each receive an email when the caregiver takes action on the working papers application.
  7. The minor can begin working — unless they receive an email rejecting their application. (Notification of approval/rejection can be expected within 24 hours of the caregiver taking action.)
NJDOL has developed a suite of online information and services for young workers.
 
To learn more, visit MyWorkingPapers.nj.gov.
 
To get working papers before June 1, visit NJDOL’s young worker hub to get the paper form.


Temporary Workers Bill of Rights

Effective May 7, 2023, covered temporary staffing agencies and their clients must comply with notice and antiretaliation provisions of the New Jersey Temporary Workers' Bill of Rights (NJTWBR).

Temporary staffing agencies must provide a person assigned as a laborer in certain industries notice in English and the employee's primary language of certain information, including:
 
  • Name of the temporary worker;
  • Contact information for the temporary staffing firm and its workers' compensation carrier; 
  • Name and address of the worksite employer or client;
  • The nature of the work to be performed and wages offered;
  • Length of assignment, if known;
  • Transportation and meal information, if applicable;   
  • Job description, including any special clothing or protective equipment required; and
  • Sick leave to which the temporary worker is entitled.
 
It is a violation of the NJTWBR for a temporary staffing agency or its client to discharge or otherwise retaliate against a covered temporary worker for exercising their rights under the law by:
 
  • Making a complaint alleging a violation to the temporary staffing agency, client, community organization, or state or federal agency;
  • Instituting a proceeding under the law; or
  • Testifying or preparing to testify in an investigation or proceeding under the law.
 
Under the law, staffing agencies and third-party clients may each be liable for violations of the retaliation provisions.

Other provisions of the NJTWBR are effective August 5, 2023.
 

Employers of Minors To Register with the State

 
Effective June 1, 2023, New Jersey's child labor law is amended to repeal parental consent requirements for most exemptions from working time restrictions and require employers that hire minors to register certain information with the New Jersey Department of Labor and Workforce Development. This information includes:
 
  • The name of the employer;
  • The email address of the employer;
  • Any location of the employer's business operations, including any location at which a minor will be working;
  • The number and names of minors whom the employer has hired or, for seasonal employment, expects to hire; and 
  • A certified statement that the employer is employing minors in only those positions permitted by law to ensure the health, safety, and well-being of minors.


Employers must update their registration for any minor employee who changes positions.

WARN Act Updated

NJ has updated its WARN law, effective April 10, 2023.  The law:

  • Covers employers with 100+ employees (counting employees outside the state), regardless of full-time or part-time status (as long as the employer has operated in NJ for more than three years).
  • The definition of "establishment” now includes either a single site or a group of locations within NJ.
  • Employers must provide notice of a closure or mass layoff at least 90 days in advance (currently 60 days).
  • Employers must pay severance equal to one week of pay for each full year of employment (NJ is the only state to require severance pay in addition to notice). If the employer fails to provide the full 90 days' notice, it will have to pay employees an additional four weeks of severance.
  • The notice and pay will be required when (i) an employer terminates or transfers its operations in an "establishment" during any continuous 30-day period (or during a 90-day aggregation period) that results in the termination of 50 or more employees (either full- or part-time); or (ii) the employer conducts a "mass layoff" (a reduction in force (not the result of a transfer or termination of operations) that results in the termination of 50 or more employees (either full- or part-time)), at any group of locations within NJ, including employees who "report to" any location in NJ (currently at least 33% of the workforce).
  • Employees cannot waive their right to severance without approval by the Commissioner of Labor or a court of competent jurisdiction.

Learn more about NJ WARN here.
.

Employee Notice of Tracking Devices

Starting April 19, 2022, an employer who knowingly makes use of a tracking device in a vehicle used by an employee without providing written notice to the employee is subject to a civil penalty in an amount not to exceed:

 

  • $1,000 for the first violation; and
  • $2,500 for each subsequent violation.

 

Age Discrimination Protection

The Governor signed into law an amendment to extend age into their discrimination protections. In addition:

 

  • New Jersey’s Law Against Discrimination (NJLAD) has been expanded to address age discrimination against employees
  • New Jersey government or state employers no longer have the authority to enforce mandatory retirement for their employees at a certain age
  • New Jersey employers can no longer refuse to hire or promote any individual solely on the basis of them reaching age 70 or older
  • The expanded NJLAD broadens the remedies that employees can pursue to obtain relief if they are victims of age discrimination
  • Institutions of higher education in New Jersey are no longer permitted to require tenured employees at colleges and universities to retire at the age of 70

 

Hiring Preference to Certain Workers

The Governor recently signed into law legislation that will require employers with 50 or more employees to provide a hiring preference to employees—following a work-related injury—who have reached maximum medical improvement but are unable to return to the job at which the employee was previously employed.

 

Under the law, employers are not required to create a new job for an employee who cannot return to his or her previous one. The law also does not impair any right of an individual with a disability to a reasonable accommodation under the New Jersey Law Against Discrimination. However, the law does not define “hiring preference” or provide any guidance as to an employer’s obligation in that regard. It is important that employers take care not to discriminate against other job applicants on the basis of any protected trait when providing this hiring preference.

 

Hours for Minors Extended

Until September 6, 2021, a minor between the ages of 16 and 18 may work up to 50 hours in one week with written permission from a parent or legal guardian. Previously, businesses could not schedule these teens for more than 40 hours a week of work.

Misclassification of Workers

Governor Murphy has signed legislation into law aimed at further penalizing employers for misclassifying employees as independent contractors. New Jersey employers that engage in employee misclassification are now subject to increased fines, new legal enforcement actions, and stop-work orders. Learn more here.

 

Cannabis Criminal Background Protections

 

Effective August 1, 2021, New Jersey employers are prohibited from inquiring about or taking adverse action against an applicant based on certain cannabis-related offenses. 

 

Specifically, an employer may not take adverse action against an applicant solely on the basis of any arrest, charge, conviction or adjudication of delinquency for such offenses. An employer also may not require an applicant to disclose or reveal such arrests, charges, convictions or adjudications.

 

COVID-19 Vaccine Can Be Required

On March 19, 2021, the New Jersey Department of Health (DOH) published guidance stating that an employer can require that its employees receive the COVID-19 vaccine to return to the workplace. The DOH guidance, however, does include exceptions to mandatory vaccination policies implemented by employers as follows: if an employee cannot get the COVID-19 vaccine because of a disability that precludes him or her from being vaccinated; where an employee’s doctor has advised the employee not to get the vaccine while pregnant or breastfeeding; or where an employee has a sincerely held religious belief, practice, or observance that precludes him or her from receiving the vaccine, an employer must provide a reasonable accommodation from its mandatory vaccine policy – unless doing so would impose an undue burden on its operations.

 

A reasonable accommodation may include permitting an employee to continue to work remotely or otherwise work in a manner that limits the risk of any harm to other employees or the public, or providing an employee with PPE that “sufficiently mitigates” an employee’s risk of COVID-19 transmission and exposure. The guidance explains that, under the New Jersey Law Against Discrimination, if there is no “reasonable accommodation” an employer may provide to mitigate the risk of COVID-19 transmission to others in the workplace (e.g., employees and customers), then the employer is permitted to enforce its mandatory vaccination policy (thus excluding unvaccinated employees from the physical workplace) – even where the employee is unvaccinated due to a disability, pregnancy or breastfeeding, or due to a sincerely held religious belief. An employer, however, may not “automatically discipline” an employee who cannot get vaccinated as it may be precluded from doing so under other laws, regulations, or policies.

 

Employers should continue to monitor the law for any new developments. Employers with multi-state operations must continue to be mindful of laws in other states in which they have employees.

 

November 2020

New Jersey Legalizes Recreational Marijuana

Effective January 1, 2021, the recreational use of marijuana (cannabis) by adults aged 21 and over is legal in New Jersey. The state legislature is to enact legislation likely addressing several issues, including how the legalization affects an employer's right to maintain a drug-free workplace.

The legalization of recreational marijuana was addressed on ballot measure Public Question 1, which was approved by New Jersey voters on November 3, 2020.