Paid Sick Leave Law Now in Effect in New Jersey!

Paid sick time should be recorded and tracked as a separate payroll item. It is best 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. 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.

  • Employers can provide 40 hours of earned sick leave immediately, or they may 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.

All employers should update their employees handbook by October 29, 2018 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.

For more detailed information, you can print the required employee notice here for posting for free: https://www.state.nj.us/labor/forms_pdfs/mw565sickleaveposter.pdf