New Jersey Joins States Mandating Paid Leave
New Jersey has officially become the tenth state to enact a statewide mandatory paid sick leave law. Signed by Governor Phil Murphy, the New Jersey Paid Sick Leave Act requires employers of all sizes across the state to provide up to 40 hours of paid sick leave per year to covered employees.
Just about every employer with workers in the state will feel the impact of the new legislation. The statute applies broadly to any business entity with employees in New Jersey, including temporary help service firms, regardless of company size. However, the legislation explicitly excludes public employers already required to provide sick leave, along with specific exemptions for construction industry workers under collective bargaining agreements and per diem healthcare employees.
Employees Accrue Sick Time Through Hours Worked or Frontloading
Under the statutory framework, employees begin accruing sick time at a rate of one hour for every 30 hours worked during a designated 12-month benefit year. Employers also retain the option to frontload the full 40 hours at the beginning of the benefit year. Existing paid time off, vacation, or personal day policies can satisfy the mandate as long as the time off can be used for the reasons outlined in the statute.
Workers can utilize their accrued sick time after their 120th day of employment. Permitted uses under the law cover an employee’s own physical or mental illness, caring for a family member, circumstances related to domestic or sexual violence, workplace or school closures due to a public health emergency, and meetings requested by school staff regarding a child’s health condition or disability. The legislation defines family members broadly to include individuals related by blood or those with an equivalent close relationship.
Employers Face Rules on Notice Requirements and Enforcement
Employers may establish reasonable notice requirements for foreseeable absences, up to seven calendar days in advance, and can require documentation for absences lasting three consecutive days or more. The statute preempts all 13 existing municipal paid sick time ordinances across the state, replacing local rules with a uniform statewide standard.
Employees retain the right to sue employers for violations, seeking actual damages plus an equal amount of liquidated damages. The legislation also features a strict anti-retaliation provision, establishing a rebuttable presumption of unlawful action if an employer takes adverse steps against an employee within 90 days of engaging in protected activity under the Act.
