Your employees are your greatest asset. Keeping up with HR regulations is key to reducing turnover and avoiding penalties and lawsuits.
Here are major changes to know about for 2020:
It’s estimated that the 2020 overtime laws will affect roughly 20 percent of small businesses. Starting on January 1, 2020, employees have to earn at least $684 per week to qualify as exempt from overtime. Highly compensated employees will need to make at least $107,432 per year to be exempt from overtime.
As of January 1, 2020, the minimum wage will be $11/hour. This will increase by $1 every year until 2024 when the minimum wage will be $15/hour.
The Family Leave Act underwent some aggressive revisions for 2020, with the mandatory paid leave increasing from six weeks to 12 for any business with 30 or more employees. Employees can also take intermittent time as they please and can now take time off to support anyone close enough to fit the standard definition of “family”—including in-laws, roommates, and distant relatives.
In 2019, Governor Murphy established a state-sponsored plan for workers who do not have access to a workplace retirement plan. Implementation is expected in 2021 and failure to comply will result in penalties and fines. It’s generally better for morale to offer a company retirement plan, so now is a good time to consider one before the New Jersey plan kicks in.
Beginning March 1, 2020 businesses with 20 or more employees need to implement a pre-tax transportation commuter fringe benefit for their employees who use mass transit or pay to park.
New Jersey now has one of the strongest anti- wage theft protection laws in the U.S. Key provisions include triple damages for non-payment of wages to New Jersey employees and civil and criminal penalties for employers who violate New Jersey wage laws.
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