On May 2, New Jersey Governor Phil Murphy signed a statewide Paid Sick Leave Bill into law, making New Jersey the 10th state to mandate paid sick leave.
Beginning October 29, 2018, all private New Jersey businesses are required to give workers one hour of paid leave for every 30 hours worked, with an annual cap of 40 hours.
The paid leave may be used for:
Family members are defined as children, grandchildren, siblings, spouse/civil union partner, parents, grandparents, spouse’s siblings and/or parents, or any blood relative. Parents are considered biological, adoptive, foster, step parent, or legal guardian. New employees can request to use their earned time off after 120 days of employment (maximum). Foreseeable leave requests must be given with up to seven days notice and abide by any blackout dates set by the employer.
All sizes of private businesses must comply with the new state law. There is no exception for small employers based on number of employees. However, the new law should only be a major adjustment for those who do not have paid leave policies already in place that satisfy the requirements of the law, which is about one-third of New Jersey’s workforce.
Employers do have options in customizing their paid leave policy parameters, (i.e. black out dates, lowering the 120 days threshold, etc.), however, businesses are prohibited from making leave accessible only under certain conditions, discriminating against employees, or taking adverse or retaliatory action against those who request or use paid leave. This includes demotion, suspension, refusing a promotion, reduction of hours, unfavorable assignments, or denial of any right guaranteed under this act.
Employers have the next six months to prepare:
Note: Before the state law was signed, 13 New Jersey municipalities had implemented paid sick leave ordinances, including Trenton, Newark, Jersey City, New Brunswick, and Montclair, among others. The new state law preempts local ordinances. In addition, the neighboring city of Philadelphia has also mandated Paid Sick Leave.
There are many minor and major elements set forth by the Bill that NJ employers must know about in order to be fully compliant, ranging from exceptions, carryover of unused time, buyout, rehiring employees within 6 months, termination, and recordkeeping requirements. Consult with an HR professional to prepare accordingly.
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