What Employers Need to Know About NJ Earned Sick Leave 

New Jersey’s Earned Sick Leave law ensures that employees across the state have access to paid time off when they or their loved ones need care, among other reasons. As an employer, it’s crucial to understand and comply with these requirements to avoid penalties and foster a supportive workplace environment. This law applies to employers, regardless of size, and sick leave must be provided to full-time, part-time, seasonal and temporary employees—essentially covering almost all workers in NJ. 

Below is a comprehensive guide to help you navigate the key responsibilities and regulations under the NJ Earned Sick Leave law, along with additional insights on managing employee time off effectively. 

Inform Employees of Their Rights 

Employers are required to inform employees about their rights under the NJ Earned Sick Leave law. This involves distributing a written notice to all employees and displaying the Earned Sick Leave poster in a prominent, visible location within the workplace. The notice is available in 12 languages in addition to English. By ensuring employees are fully aware of their rights, employers help create a transparent and compliant work environment. 

Define the Benefit Year 

A benefit year refers to the 12-month period during which employees accrue and use their earned sick leave. Employers have flexibility in defining this period, which can include: 

• Alignment with the calendar year for all employees.
• Be based on each individual employee’s hire date, or,
• Some other fixed, designated 12-month period, such as a fiscal year. 

To change the benefit year, employers must notify the New Jersey Department of Labor and Workforce Development (NJDOL) in writing at least 30 calendar days before the proposed change. 

Reasons for Use 

Earned sick leave days are for more than just an employee’s own illness. An employee may use their earned sick leave to: 

• Care for their own or a loved one’s physical or mental illness
• Receive wellness care
• Cope with domestic or sexual violence, or care for a loved one who is a victim/survivor
• Attend a child’s school-related meeting, conference, or event, when requested by the school
• Quarantine based on the advice of a health care provider or public health authority
• Care for children when school or childcare is closed due to an epidemic or public health emergency 

Options for Managing Sick Leave Accrual 

Employees earn one hour of sick leave for every 30 hours worked, with a maximum accrual of 40 hours per year. Accrual begins upon hire and the employee may begin to use their earned sick time 120 calendar days after employment begins, unless the employer agrees to an earlier date. Subsequently, the employee may use earned sick time as soon as it is accrued. 

As an alternative to the accrual schedule, an employer may provide employees with 40 hours of sick leave at the start of the benefit year. This approach eliminates the need to track individual accruals. For employees hired mid-year, leave can be prorated while still ensuring that employees earn one hour for every 30 hours worked. 

Keep Records for Compliance 

Employers must keep detailed records of compliance with the NJ Earned Sick Leave law for at least five years. Required records include hours worked by employees, accrued and advanced sick leave, and sick leave used, carried over, or paid out. These records must be provided to the NJDOL upon request. Failure to maintain accurate records can result in penalties. 

Handle Employee Transitions 

The law includes provisions to ensure that employees retain their earned sick leave in the following scenarios: 

• Transfers: Employees who transfer to another location of the employer within New Jersey retain their earned sick leave.
• Rehires: If an employee is rehired within six months of leaving, their previously accrued sick leave must be reinstated.
• Successor Employers: If a new employer takes over the business, they are required to honor the sick leave policies and balances established by the previous employer. 

Supporting a Healthy Workplace 

Beyond legal compliance, the NJ Earned Sick Leave law offers an opportunity for employers to build a culture of trust and well-being. Employees who feel supported in managing their health and personal responsibilities are more likely to stay engaged and productive. Employers can further enhance workplace morale by: 

• Encouraging open communication about time-off needs.
• Offering flexible scheduling to accommodate unexpected absences.
• Creating policies that prioritize employee health and well-being. 

Why Compliance Matters 

Understanding and adhering to the NJ Earned Sick Leave law is not just a legal obligation but also an opportunity to promote employee well-being and satisfaction. By offering earned sick leave, employers can improve employee retention, reduce absenteeism, and foster a positive workplace culture. 

Employers should also remember the long-term benefits of compliance. Penalties for failing to meet the law’s requirements can include fines and damaged reputations, which may impact the ability to attract top talent. Prioritizing compliance demonstrates a commitment to employee welfare and reinforces a company’s standing as a responsible employer. 

For more information and resources, visit the New Jersey Department of Labor and Workforce Development website. 

By staying informed and proactive, employers can navigate the NJ Earned Sick Leave law with confidence, ensuring both compliance and the well-being of their workforce. 

EANJ Is Your Trusted Resource for Employer Success 

EANJ is dedicated to empowering New Jersey employers with expert guidance, impactful training, and reliable resources to foster thriving workplaces. Our support ensures that you remain compliant with the NJ Earned Sick Leave law while creating a culture of well-being within your organization. 

Become a member today and join our community of empowered employers, where we provide you with up-to-date information on NJ Earned Sick Leave and other essential workplace regulations.