New Jersey Paid Time Off (PTO) law is a cornerstone of employee rights, and it also outlines the obligations and rights of employers regarding paid leave. That’s why employers need to comply with the latest legal mandates. For any business, legal compliance with the New Jersey PTO laws is mandatory for compliance and fostering a positive workplace culture.

We created this guide on New Jersey PTO law to help employers understand various regulations and stay abreast of any changes to ensure compliance and strategically manage employee leave.

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Paid Sick Leave

• As of 2024, under the New Jersey PTO Law, paid sick leave is a mandatory provision employers must offer their employees. All employees in the state are entitled to accrue 1 hour of paid sick leave for every 30 hours worked. Employers can limit the yearly accumulated paid sick leave to 40 hours annually.
• The accrued paid sick leave can be used for various reasons besides the employee’s medical needs. It can be used for family illness, attending to matters related to domestic or sexual violence, and attending school meetings related to a child’s health or disability.
• Accrual of paid sick leave starts from the first day of employment. However, employers can put a waiting period of 120 days, after which new hires can use their accrued paid sick leave. Furthermore, employees can carry over 40 hours of unused paid sick leave from one year to the next. Employers are not required to pay for unused paid sick leave upon termination of an employee.
• For employers, this means implementing a system that accurately tracks employee hours and accrued sick leave. It’s vital to have clear policies that align with the state requirements, ensuring that employees know their entitlements and the process for availing of sick leave.

Paid Vacation, Holiday, and Personal Time

New Jersey has no laws mandating paid vacation, holiday, or personal time off. It is at the employer’s discretion to offer PTO. Typically, most organizations offer these benefits to attract and retain talent. If an employer in New Jersey decides to provide PTO, they must adhere to their established policies and procedures without any discrimination.

Employers must define eligibility, accrual, and usage rules for PTO offerings in their employee handbooks, contracts, and offer letters. Any changes to these policies should be communicated effectively to all employees to prevent misunderstandings and potential legal issues.

Laws Permitting Sick Time and Medical Leaves

Several New Jersey PTO laws permit employees to take time off beyond standard sick leave, extending to broader medical leaves. Employers must know the various laws allowing employees time off for medical needs.

The Family and Medical Leave Act (FMLA)

• The federal Family and Medical Leave Act (FMLA) allows all eligible employees to take up to 12 weeks of unpaid sick leave to attend to health-related circumstances, such as caring for a family member with a severe health condition or bonding with a new child. These laws mandate job protection and can vary based on the employer’s size and the employee’s tenure and hours worked.
• To be eligible for FMLA, an employee must have worked with the current employer for at least one year or worked 1,250 hours the previous year.
• FMLA applies to all employers with 50 or more employees or employees working at a location where 50 or more workers work within a 75-mile radius.
• An employee can use FMLA sick leave for the employee’s serious health condition, the care of a family member with a serious health condition, or the birth or adoption of a child.

New Jersey Family Leave Act (NJFLA)

The New Jersey Family Leave Act (NJFLA) is another law that allows workers in the state to take time off for medical needs beyond paid sick leave. It is a crucial piece of legislation that provides eligible employees with job-protected leave to care for needy family members. To support the well-being of employees and their families, NJFLA ensures that workers can take time off to address significant family-related matters without fear of adverse employment actions.

All employers with 30 or more employees must provide up to 12 weeks of time off within 24 months to eligible employees to care for an ill family member or bond with a child. To qualify for NJFLA, employees should have worked for their employer for at least 12 months and have accumulated at least 1,000 hours of work during the preceding 12-month period.

Leave under NJFLA can be unpaid, paid, or both, depending on the employer’s policies.

Jury Duty Leave

In New Jersey, the law requires employers to provide unpaid time off for employees summoned to serve on a jury. While this leave is not compensated, employers are prohibited from penalizing or otherwise disadvantaging employees for fulfilling their civic duty. It is also necessary for employers to allow employees to return to their positions without any repercussions.

While private employees are not required to pay employees for jury duty leave, public employees are paid depending on their employment policies. However, the state pays any employee serving as a juror in New Jersey $5.00 daily.

Employers should have a clear policy regarding jury duty leave, which should be communicated in the employee handbook or through other internal communications. This policy should outline the process for employees to notify their employer of the need for jury duty leave and any documentation required.

Victims of Crimes

As of 2024, victims of crimes have the legal right to take up to 20 days under the New Jersey Security and Financial Empowerment Act (NJ SAFE Act). This PTO is available for employees if they or a member of their immediate family is a victim of sexual assault or domestic violence.

Employers should provide victims of crimes unpaid leave to participate in court proceedings related to the crime. Employers must allow this time off, recognizing the importance of an employee’s role in the judicial process and their need for recovery and support. Additionally, employers must be sensitive and discreet in handling such situations, ensuring confidentiality and understanding.

Payments for Unused Time Off

As of 2024, no New Jersey PTO law mandates employers to pay employees for unused time off, such as vacation days. The decision to pay for unused time off depends on the employer’s established policy or employment contract. If the employer’s policy or agreement includes such provisions, they are legally bound to honor them.

If an employer offers payments for unused time off, they should have clear, written policies regarding the accrual, use, and payment of unused vacation time. These policies should be consistently applied and communicated to all employees to avoid potential disputes and ensure fairness.

Rollover policy in New Jersey

New Jersey allows a use-it-or-lose-it policy, meaning employers are not required to allow employees to carry over unused PTO from one year to the next. However, paid sick time up to 40 hours can be rolled over to the following year. The maximum limit that can be carried over and the specifics of these provisions can vary based on the employer’s policy.

It’s essential for employers to clearly define their rollover policies in their employee handbooks, detailing how much leave can be carried over and any conditions or limitations associated with this process.

Statutory provisions addressing vacation pay

In New Jersey, paid time off is not considered as wages. Therefore, there are no statutory provisions to address vacation pay. However, labor laws stipulate that employers must adhere to their established policies or employment contracts if they offer vacation benefits.

Employers should have comprehensive vacation pay policies to avoid misunderstanding or potential legal disputes, including how vacation time is accrued, used, and compensated upon termination or resignation.

NJ policy on payment of accrued, unused vacation on termination

As there is no legislation for payment of PTO in New Jersey, the payment of accrued, unused vacation upon termination is guided by the employer’s policy or employment agreement. If the employer’s policy states that employees are entitled to payment for unused vacation time at termination, they must adhere to the agreed terms of employment.

Employers have no obligation to pay on termination without an established policy for payment of accrued, unused vacation. This makes it necessary that employers must ensure that policies regarding vacation pay upon termination are clearly stated and consistently applied.

Bereavement Leave

There is no provision to provide bereavement leave in New Jersey PTO law. Most employers offer this leave to employees to allow them enough time to grieve and deal with the loss of a family member. Employers need to consider the impact of bereavement leave on their workforce, and offering bereavement leave can be a significant aspect of supporting employees during difficult times.

Military Leave

• A combination of federal and state laws governs military leave in New Jersey. The key federal law is the Uniformed Services Employment and Reemployment Rights Act (USERRA), which applies nationwide. USERRA ensures that individuals who serve or have served in the Armed Forces, Reserve, National Guard, or other uniformed services are not disadvantaged in their civilian careers and can return to their employment after their military service.
• Under USERRA, all employers should provide employees unpaid leave for military service for up to 5 years to serve in duty. Furthermore, such employees should be provided group healthcare benefits for up to 24 months. Employers must reemploy returning service members in the position they would have attained had they not been absent for military service, with the same seniority, status, pay, and other rights and benefits determined by seniority.
• In addition to the USERRA, state law further protects the rights of employees who take leave to serve active duty in the armed forces. However, it doesn’t protect individuals working in temporary positions.
• Military leave is unpaid under the federal and state laws. Employees are protected from termination except for cause for one year after their reinstatement if their military service was for more than 180 days. The protection lasts for six months for service between 31 and 180 days.

Voting Leave

Voting leave is not required by law in New Jersey. It depends on employers’ policies to allow employees to fulfill their civic duty during work hours. Still, most employers in New Jersey provide time off for employees who need more time outside of working hours to vote.

Any time off for voting is unpaid and depends on the employer’s discretion. Employers should promote civic participation while balancing the operational needs of their business. Being supportive of employees’ voting rights can also positively reflect on the company’s commitment to civic responsibilities and employee well-being.

State Holidays

New Jersey has 13 recognized state holidays, but private employees are not obligated to provide paid or unpaid holidays. However, public employees should be given holidays on officially recognized days.

Here are the state holidays for 2024:

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How can Truein help with Paid time off management?

Managing PTO effectively can be challenging for employers to ensure compliance with labor regulations, maintain accurate records, and support employee leave requests.

Truein offers innovative solutions for PTO management, streamlining processes, and providing valuable insights to enhance organizational efficiency and employee satisfaction. A complete time and attendance management solution, Truein has robust features to help managers accurately record leave. It can automate the accrual calculation process based on company policies, eliminating manual errors and accurately tracking employees’ accrued PTO.

It offers real-time tracking of PTO balances, usage, and requests, facilitating informed decisions about scheduling time off. It enables employers to monitor PTO trends, identify potential staffing gaps, and proactively manage workforce scheduling. With 70+ customizable policy templates, employers can easily set up PTO policies and rules that align with their organization’s needs and requirements.

Truein offers many more, such as seamless integration with existing HR and payroll systems, advanced reporting and analytics capabilities, employee self-service apps, and more.

Conclusion

New Jersey PTO law is a fundamental compliance requirement of workforce management that employers must understand. From Paid Sick Leave to Military Leave, each aspect of the New Jersey PTO Law has nuances and requirements that employers must adhere to. That’s why tools like Truein can significantly assist in managing these requirements efficiently.

Employers are responsible for staying informed, implementing clear policies, and ensuring compliance with the New Jersey PTO Laws to foster a fair and supportive workplace.

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