NEW JERSEY LABOR LAWS
Minimum Wage
New Jersey defers to the FLSA, which requires that all household employees, including senior caregivers and companions, be paid at no less than the greater of the state or federal minimum wage.
New Jersey minimum wage is $14.53/hr for employers with 5 or fewer employees. Larger employers are subject to a minimum wage of $15.49.
Overtime Pay
All workers are to be paid an overtime differential of 1.5 times the hourly wage for hours over 40 in a 7 day week. Live-in employees must receive overtime compensation. Overtime or premium pay is not required for hours worked in excess of 8 per day or on weekends or holidays.
Paid Time Off
New Jersey employees will accrue one hour of paid sick leave for every 30 hours worked, up to a maximum of 40 hours in one year. You may choose to give 40 hours upfront, instead of using an accrual system. Additionally, you may prevent employees from using paid sick time until they have worked at least 120 days for you. Accrued sick time does not have to be paid out at termination.
You must give employees this paid sick leave notice at the time of hire. The full provisions of the sick leave law can be found here. There are additional requirements in some parts of New Jersey:
- Jersey City: You must provide a written notice to your employees of their right to paid sick time, accrual rate and amount of paid sick time, terms of use, a statement of right to be free from retaliation for requesting or using paid sick time, and an explanation of the right to file a complaint or bring a civil action for violations of the ordinance by you, the employer. The full ordinance can be found here.
- Morristown: You must provide a written notice to your employees explaining their right to paid sick time, the accrual rate, their right to be free from retaliation, and their right to file a complaint or bring an action in municipal court if paid sick time is being denied by their employer. The full ordinance can be found here.
- Plainfield: You must provide a written notice upon hiring about sick leave. The notice can be found here.
Mileage Reimbursement
The federal government establishes and updates a maximum rate for non-taxable mileage reimbursement each year. The current rate is $0.67 per mile.
Payroll Frequency
New Jersey allows you to pay your household worker daily, weekly, bi-weekly or semi-monthly, but does not allow monthly pay cycles. Pay upon separation is due immediately.
Payroll Documentation
You must provide your employee with paystubs detailing their earnings and any deductions from pay. You are also subject to the recordkeeping requirements of FLSA.
New Jersey Domestic Workers’ Bill of Rights
New Jersey’s Domestic Workers’ Bill of Rights strengthens protections for household employees, including nannies, housekeepers, and senior caregivers. These rules build on existing state wage and hour laws, and employers must provide the following:
- Paid Breaks: Household employees must receive at least one 10-minute paid break for every 4 consecutive hours of work unless the nature of the job (such as child care or care for the elderly.)
- Meal Breaks: Employees must receive a 30-minute meal break after working more than 5 consecutive hours. If the nature of the job prevents the employee from being fully relieved of their duties, the meal period must be paid and should be included in overtime calculations.
- Rest Days for Live-In Employees: Live-in employees are entitled to at least one unpaid 24-hour rest day after working 6 consecutive days.
- Termination Notice: Employers must provide at least 2 weeks’ notice before ending employment. Live-in employees must receive 4 weeks’ notice, unless termination is due to employee misconduct.
- Recordkeeping: Employers are required to maintain accurate records of hours worked, pay rates, break periods, and leave time earned/used.
Workers’ Compensation Insurance
New Jersey requires that all household employers obtain Workers’ Compensation Insurance. HWS ALWAYS recommends obtaining a Workers Compensation Insurance policy for the protection it provides in the event of a work-related injury sustained by your employee. You may purchase the insurance from a commercial insurance company approved by the NJ State Insurance Commission. More information can be found from the New Jersey CRIB (https://www.njcrib.com/). Alternatively, a policy can usually be obtained easily and cost effectively by contacting your Homeowner’s or Renter’s Insurance provider. HWS can help you obtain this insurance through our insurance partner (just give us a call).
State Unemployment Insurance
New Jersey requires a new employer state unemployment insurance tax of 3.1% for the first $43,300 wages paid to each employee. This may vary if you have previous employees.
Frequency of Tax Filings
New Jersey requires quarterly tax filings for unemployment insurance taxes and annual filings for income tax withholdings.
