New Jersey HR Consulting & Employment Law for Small Businesses
New Jersey has some of the most comprehensive employee protections in the country, including Family Leave Insurance, a broad anti-discrimination law, and a WARN Act more demanding than the federal version.
New Jersey employers face compliance requirements from the New Jersey Law Against Discrimination (one of the broadest anti-discrimination statutes in the country), New Jersey Family Leave Insurance (12 weeks of paid leave), New Jersey Earned Sick Leave (up to 40 hours/year), and a state WARN Act that requires 90 days notice and applies to smaller layoffs than federal law.
Note: This guide is for informational purposes only and does not constitute legal advice. Employment laws change frequently. Consult a qualified employment attorney for advice specific to your situation.
Key New Jersey Employment Laws
New Jersey Family Leave Insurance
NJ FLI provides eligible employees up to 12 weeks of paid leave for bonding with a new child, caring for a seriously ill family member, or dealing with a covered military-related event. The benefit is employee-funded through payroll deductions. Employers must display required posters and provide required notices.
New Jersey Law Against Discrimination (NJLAD)
NJLAD applies to employers with 3 or more employees and provides broader protections than federal law, covering protected categories including sexual orientation, gender identity and expression, domestic partnership or civil union status, and atypical hereditary cellular or blood traits. There is no cap on compensatory damages under NJLAD.
New Jersey Earned Sick Leave
All employers must provide eligible employees up to 40 hours of earned sick leave per year, accruing at 1 hour per 30 hours worked. Sick leave can be used for medical care, domestic violence, and school-related emergencies. Employers may choose to front-load 40 hours at the start of the benefit year.
New Jersey WARN Act
New Jersey's WARN Act requires 90 days advance notice for plant closings or mass layoffs, compared to 60 days under federal WARN. It applies to employers with 100+ employees for layoffs of 50 or more workers. Severance pay of one week per year of service is required if sufficient notice is not provided.
Compliance Thresholds for New Jersey Employers
1+ Employees: employees
- New Jersey minimum wage (above federal, rising annually)
- New Jersey Earned Sick Leave (40 hours/year for all employees)
- New Jersey Family Leave Insurance contributions (employee-funded)
3+ Employees: employees
- New Jersey Law Against Discrimination (NJLAD) applies -- one of the broadest anti-discrimination laws in the US
50+ Employees: employees
- Federal FMLA applies
- New Jersey Family Leave Act (NJFLA) applies for baby bonding and family care
- New Jersey WARN Act (90 days notice, applies at 100+ employees with 50+ laid off)
Common Questions About New Jersey Employment Law
What does New Jersey Family Leave Insurance provide?
NJ FLI provides up to 12 weeks of paid leave within a 12-month period for bonding with a new child or caring for a seriously ill family member. Benefits replace a percentage of wages up to a maximum. Employees fund the program through payroll deductions.
Does New Jersey require paid sick leave for all employees?
Yes. New Jersey Earned Sick Leave applies to all employers, regardless of size. Employees accrue 1 hour of paid sick leave per 30 hours worked, up to 40 hours per year. Sick leave can be used for the employee's own illness, a family member's illness, domestic violence, or a school-related emergency.
How broad is the New Jersey Law Against Discrimination?
NJLAD applies to employers with 3 or more employees and covers more protected categories than federal law, including sexual orientation, gender identity, domestic partnership status, and atypical hereditary cellular traits. There is no cap on compensatory or punitive damages, making NJLAD claims high-stakes for employers.
What does the New Jersey WARN Act require?
NJ WARN requires 90 days advance written notice to employees, union representatives (if applicable), and state agencies before a plant closing or mass layoff affecting 50 or more employees at an establishment with 100+ employees. Employers who fail to give proper notice must pay 1 week of severance per year of service.
Are non-competes enforceable in New Jersey?
New Jersey courts apply a reasonableness test to non-competes: they must protect a legitimate business interest, be limited in scope and duration, and not impose undue hardship on the employee. Courts will often blue-pencil (reform) overly broad agreements rather than voiding them entirely.
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