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NJ Employment Law Basics for 2025: A Refresh for the New Year

by | Jan 23, 2025 | Employment Law |

New Jersey employment laws provide protections that aim to enhance and protect the workplace. Employers and employees alike must stay alert to new laws and how they apply to their unique situation. Some key updates to NJ employment laws you should know heading into 2025 include:


Changes to Minimum Wage

Employers: make updates according to N.J.S.A. 34:11-56a4. In NJ, starting January 1, 2025, a minimum wage increase goes into effect to $15.49 per hour for most employees. Also notable is the maximum tip credit for employers, which will remain at $9.87.


Pay Transparency Laws

In November of 2024, the government put a statute in place that requires all employers with 10+ employees to provide wage, salary information, or compensation range when posting new jobs, promotions, or transfer information.

Effective in June of 2025, employers will be required to list benefits and other compensation programs for which an employee will be eligible within the first 12 months of employment.


Data Protection Act

On January 15, 2025, the state will require the following rules under the New Jersey Data Protection Act, which impact both customers and employees. This includes:

  • Limiting the collection of personal data to what is necessary, relevant, and adequate
  • Implementing reasonable data security practices
  • Provide privacy notices
  • Allow all consumers to revoke their consent for processing
  • Conduct data protection impact assessment
  • Maintain records of data protection assessments

This applies as outlined under New Jersey SB 332 (AB 1971).


Review Business Expense Policies

The New Jersey Wage Payment Law prohibits employers from withholding or diverting wages unless explicitly allowed by law. This includes employee reimbursement for business-related expenses. If an employer requires an employee to use their personal vehicle for work without providing reimbursement for the associated costs, the employee may have a valid claim under this statute.


Out-of-State Workers and NJ Employee Discrimination

Another important update for 2025 involves New Jersey’s Law Against Discrimination (NJLAD) and out-of-state workers. Recent clarification found that all employees of a New Jersey-based employer have the same protections. This means that even if the employee does not work for a company physically in the state, all of the relevant NJ employment discrimination statutes apply. Employers must ensure all out-of-state employees and remote employees have the same right to a discrimination-free workplace.


Family Paid Leave Benefits

New Jersey’s Family Leave Insurance requirements provide wage replacement for employees who take time off work to care for seriously ill family members, the birth or adoption of a child, or other similar situations.

The benefits under this law were recalculated for 2025. These changes apply to the statewide average weekly wage in the second preceding calendar year. For 2025, the maximum weekly benefit is $1081, which is up from the previous $1055.


Unemployment Insurance Claims

The unemployment insurance claims benefit paid out has also increased for 2025. It is now $875.


Workers’ Compensation Claims

For paid leave benefits related to workers’ compensation claims, the benefit rate for temporary disability, permanent total disability, permanent partial disability, and dependency rose. It is now $1159, up from $1131 in 2024.


General Neutral Dress Code Policies

A new statute requires mandated requirements to adopt gender-neutral dress codes for all patrons and employees. This rule is in place as a component of a decision by the Division on Civil Rights that found a restaurant liable when it failed to address this. Employers must have gender-neutral clothing options for their employees as to not target or discriminate against a specific gender, sexual orientation or expression.


Employment Laws to Watch in 2025

There could be changes to any laws in 2025, and it is critical for you to stay up to date on any of those. Keep in mind that these laws may reflect a wide range of updates over the year.


Other Current Employment Laws in New Jersey

Some basic employment laws in the state as of January 2025:

  • Minimum Wage and Overtime Wage Rate: This applies to all workers covered under the Act. It requires the payment of time and one half per hour for actual hours worked over 40 hours each week.
  • Unpaid or Withheld Wages: This law outlines all time, manner, and mode of payment allowable, as well as prohibits the withholding of wages for illegal deductions.
  • Public Contract Wages: The New Jersey Prevailing Wage Act applies to payments for workers on construction projects subsidized by public funds.
  • Leave and Benefits Laws: There are several laws in NJ related to leave and benefits including the Earned Sick Leave law, which allows employees to accrue 1 hour of earned sick leave for every 30 hours worked up to 40 hours each year. The Fringe Benefits law enforces a separate benefit package that employers agree to provide, such as for vacation, personal days, or holidays, and covers reimbursement of expenses. Also note, Health Benefits laws fall under this area, including the rules regarding when employers must provide health benefits.
  • Worker Classification: The state applies construction industry independent contractor and general misclassification laws related to worker classification that must be followed.

Note that these laws change, often within a short period of time. It is an employer’s obligation to ensure they are following the most up-to-date requirements in the state. You can find a full list of Department of Labor and Workforce Development laws on the state’s website.


Working with NJ Employment Attorneys

As New Jersey employment laws change heading into 2025 and new laws loom on the horizon, it is critical for businesses to maintain compliance and for employees to ensure they are being treated fairly. To do that, work with top NJ Law Firms who can offer employment law advice and protect your rights. Contact the team at Hamilton Law Firm for assistance.

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