Intro to New Jersey Labor Laws

New Jersey will significantly expand the New Jersey Family Leave Act (NJFLA) by lowering the employee threshold from 30 employees down to just 15 employees. This includes all employees worldwide, as long as the employer has at least one employee in New Jersey. Additionally, eligibility requirements that were previously at 12 months and 1,000 hours are now 3 months and 250 hours. The law also provides new job protection rights to employees eligible for Temporary Disability (TDI) or Family Leave Insurance (FLI), granting new job protection rights for an employee’s own medical condition for the first time under the NJFLA. Finally, the legislation also clarifies that while employees may choose the order in which they use earned sick leave and TDI or FLI benefits, they may not use multiple types of leave concurrently.

Employers should review and update their leave and sick leave policies to reflect these changes, train managers on expanded job protections, and post updated NJFLA posters when they become available.

The New Jersey Supreme Court has ruled that earned commissions are considered "wages" under the state's Wage Payment Law. This decision clarifies a long-standing ambiguity and means that employers must adhere to the same strict rules for paying commissions as they do for traditional salaries and hourly wages. This includes timely payment, accurate record-keeping, and adherence to specific requirements regarding deductions and final paychecks.

Employers should review their commission agreements and payment practices to ensure full compliance with New Jersey's Wage Payment Law.

The U.S. Court of Appeals for the Third Circuit issued a ruling, which clarifies that the New Jersey Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act (CREAMMA) does not grant individuals the right to sue employers for discriminating against them based on their cannabis use. The court determined that, although CREAMMA restricts adverse employment actions based solely on cannabis use, it does not provide a private right of action for individuals to enforce these protections. Employers should continue to comply with the law’s provisions and monitor evolving state and federal laws regarding cannabis use in the workplace.

New Jersey has expanded its prohibition on employer‑mandated meetings to ban what are commonly known as “captive audience” meetings. Effective immediately, employers may no longer require employees to attend or participate in meetings or communications that convey the employer’s views on political or religious matters—including topics related to union organizing or support.

The law also prohibits retaliation against employees who refuse to attend these meetings. Employers must also post a notice of employee rights under the law in a conspicuous workplace location. Exceptions allow voluntary meetings, communications required by law, job‑related information, and training such as anti‑harassment or anti‑discrimination programs.

Employers should review practices around mandatory meetings and update attendance policies and workplace notices to ensure compliance with the expanded prohibitions.

New Jersey has issued guidance that using Artificial Intelligence (AI) in hiring and other decisions, must comply with the state’s anti-discrimination laws. The guidance further states that AI-driven bias is considered unlawful discrimination under the New Jersey Law Against Discrimination (NJ LAD).

Employers, including those using AI tools from third-party vendors, must ensure their systems do not result in discriminatory outcomes. Employers will want to review their AI-driven processes carefully to remain compliant.

Governor Phil Murphy has signed new legislation making New Jersey the next state to require pay transparency. Starting June 1, 2025, New Jersey employers with 10 or more employees must include pay ranges, benefits, and any job advancement opportunities that employees would be eligible for in the first 12 months of employment in all job postings. Additionally,  covered employers must notify current employees of promotion opportunities. Failure to comply with these requirements could result in fines. To prepare, covered employers should review current job postings, policies, and procedures with legal counsel to ensure compliance.