Key Rules for Employers & Employees

New Jersey offers a robust set of labor protections, from minimum wages and paid sick leave to pay transparency and protections for temporary workers. If you run a business or work in New Jersey, here’s what you need to know in 2025.

1. Minimum Wage & Special Rates

• Standard Minimum Wage (2025): $15.49 per hour.
• Small / Seasonal Employers: Employers with fewer than 6 employees or seasonal operations pay $14.53/hr.
• Agricultural Workers: $13.40/hr in 2025 under the agricultural wage schedule.
• Direct Care Workers in Long-Term Care: Higher floor—$18.49/hr in 2025.
• Tipped Employees: The cash wage may be as low as $5.62/hr, as long as tips bring total pay up to minimum wage.

2. Earned Sick Leave Law

• Accrual: 1 hour of sick leave for every 30 hours worked, up to 40 hours per year.
• Frontloading Option: Employers may provide the full 40 hours at the start of the year to avoid accrual tracking.
• Usage: For own illness, family care, workplace or school closures, or domestic violence needs.
• Carryover: Up to 40 hours may carry over; employees may use up to 40 hours per year.
• Documentation: Employers may require documentation if leave is taken for three or more consecutive days.
• Anti-Retaliation: Employers cannot retaliate when employees use or request sick leave.

3. Pay Transparency (Effective June 1, 2025)

• Employers must include a wage or salary range in job advertisements, promotions, and transfer postings.
• Must also provide a general description of benefits/compensation programs.
• Employers must make “reasonable efforts” to post promotional opportunities internally.
• If the position is commission-based, a specific commission structure or disclosure requirement must replace a fixed range.

4. Overtime, Exemptions & Wage Practices

• New Jersey generally follows FLSA overtime rules: Nonexempt employees get 1.5× pay for hours over 40/week.
• No special state overtime for daily excess hours unless contractually agreed.
• Exempt employees must satisfy both federal duties and salary tests.
• Employers may not reduce pay retroactively or violate minimum wage when making deductions.

5. Final Pay, Deductions & Recordkeeping

• Employers must pay all owed wages by the next regular payday after separation.
• Deductions are allowed only if required by law or authorized in writing, and cannot reduce wages below minimum wage.
• Employers must retain records of hours, wages, deductions, and employee data for 5 years.

6. Temporary Worker Protections: TWBR

• The Temporary Workers’ Bill of Rights (TWBR) imposes obligations on staffing agencies and host employers:
  • Written disclosure of job terms (wages, hours, duties).
  • Coordination responsibility between agency and host employer to comply with laws.
  • Equal treatment obligations for temporary workers in certain respects.

7. Additional Protections & Laws

• Immigration Status Protection: Employers may face fines (up to $10,000) for threatening to reveal a worker’s immigration status to shield violations.
• Dress Codes: Must be gender-neutral; employers cannot enforce dress code rules discriminating by gender.
• Benefit / Disability Updates: Some benefit maximums increased for 2025 (e.g. weekly benefit caps).

8. 2025 Compliance Checklist for NJ Employers

1. Raise base wages to $15.49 (or relevant special rate) effective Jan 1.
2. Update job ads with salary ranges (effective June 1) and job descriptions.
3. Implement or audit sick leave accrual or frontload policy.
4. Train HR / hiring teams on TWBR and pay transparency rules.
5. Adjust payroll, deduction, and record systems to meet 5-year retention.
6. Review commission-based roles to ensure compliance with disclosure standards.
7. Post required labor posters and notices (minimum wage, sick leave, pay transparency).
8. Monitor legislative changes; stay updated.

CONCLUSION

New Jersey’s labor law framework in 2025 continues to expand worker protections while placing significant compliance demands on employers—especially around transparency and leave. Stay informed, audit your policies, and ensure your operations align with the new rules.

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