Did You Know that the NJ Paid Time Off Law Applies to ALL NJ Employees?

Effective as of October 29, 2018, all employers that employ employees in New Jersey are required to provide sick leave to each employee at the same rate, and with the same benefits, as the employee normally earns.  All employees must accrue earned sick leave at the rate of 1 hour for every 30 hours worked, up to a maximum of 40 hours of leave per benefit year. Here is a quick summary, view the entire act at the NJDOL: https://www.nj.gov/labor/wagehour/lawregs/wage_and_hour_laws.html

Employers can either provide 40 hours of earned sick leave immediately, or, theymay limit paid sick leave usage until 120 calendar days after an employee’s date of hire. The employer is not required to compensate an employee at an overtime rate if the paid sick leave is used for hours which would have otherwise qualified for compensation at an overtime rate.  If an employee is compensated on a commission basis, whether base wage plus commission, or commission only, the employer must pay either the hourly base wage rate or the State minimum wage, whichever is higher. Independent contractors are not eligible for paid sick leave.

The Act allows employers to require employees to provide reasonable notice up to seven days in advance. If the leave is unforeseeable, an employee must provide notice as soon as practicable. Employers may prohibit employees from using foreseeable earned sick leave on certain dates and may require reasonable documentation if leave that is not foreseeable is used on those dates.

Paid sick time should be recorded and tracked as a separate payroll item. It is best for recordkeeping if paid sick hours are printed on the employee paystub so workers can see how much time has been used or is eligible to be used. If you use a payroll company, you must report it separately from hours worked. If you use payroll software create a new payroll item, and be sure to check for software updates. Employers should update their employees handbook for 2019 and obtain the signature from each employee and retain it in the employees file.

Employers must post the required notice in a conspicuous place accessible to all employees in the workplace.

You can print the notice here for free: https://www.state.nj.us/labor/forms_pdfs/mw565sickleaveposter.pdf