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New Jersey Enacts Paid Sick Leave Law

06/06/18

Author: ADP Admin/Wednesday, June 6, 2018/Categories: State Compliance Update, New Jersey

New Jersey Governor, Phil Murphy (D), has signed into law the New Jersey Paid Sick Leave Act (the “Act”), which will provide eligible employees with paid leave for their own medical needs, those of a family member, or other covered reasons.

Covered Employers and Employees
The Act applies to all employers with employees working in New Jersey, including temporary help service firms, regardless of employer size.
All employees working in the state will be eligible for paid leave under the Act, with the exception of:
  1. Construction employees working under a collective bargaining agreement;
  2. Per diem health care employees; and
  3. Public employees, who are already required to receive paid sick leave.
Employees may begin using paid sick leave on the 120th day of employment, unless the employer agrees to an earlier date.

Amount of Sick Time Provided, Accrual and Carryover Requirements
If an employer has a paid time off policy (including personal days, vacation days, sick days, etc.) that provides a sufficient amount of paid time off to comply with the law—and allows the time to be used in a manner consistent with the law—it does not need to provide additional earned sick leave.

Otherwise, leave begins to accrue on the law’s effective date or when employment begins—whichever is later—at a rate of one hour for every 30 hours worked. Employers are not required to allow employees to accrue more than 40 leave hours in a benefit year.

As an alternative to accruing leave, employers can front-load 40 leave hours on the first day of a benefit year. Employers must permit up to 40 leave hours to be carried over from one benefit year to the next. Employers using an accrual-based system may give employees the option of receiving compensation for any accrued, but unused leave at the end of the benefit year. If front-loading, employers may either carry over accrued but unused leave or offer employees compensation at the end of the year.

Reasons for Use of Paid Sick Time
An eligible employee may use paid sick leave benefits for any one of the following reasons:
  • Diagnosis, care, treatment, or recovery for the employee’s own mental or physical condition (inclusive of preventive care);
  • Diagnosis, care, treatment, or recovery for a family member’s mental or physical condition (including preventive care);
  • Time needed as a result of an employee’s or family member’s status as a victim of domestic or sexual violence (including counseling, legal services, or participation in any related civil or criminal proceedings);
  • Time when the workplace, school, or childcare is closed by order of a public official due to a public health concern; and
  • Time to attend a school-related conference or meeting.
A “family member” is defined as “child, grandchild, sibling, spouse, domestic partner, civil union partner, parent, or grandparent of an employee, or a spouse, domestic partner, or civil union partner of a parent or grandparent of the employee, or a sibling of a spouse, domestic partner, or civil union partner of the employee, or any other individual related by blood to the employee or whose close association with the employee is the equivalent of a family relationship domestic partner, or civil union partner of the employee.”

Employee Notice and Documentation
The Act permits employers to require advance notice of foreseeable absences and allows businesses to prohibit the use of “foreseeable” paid sick leave benefits on certain dates, as well as require documentation if unforeseeable sick leave is used on those dates.

If an employee is absent for at least three consecutive days, the business may request documentation to confirm the employee used the sick leave benefits for a purpose permitted under the Act. For leave related to an employee’s or a family member’s medical needs, such documentation would include information from a health care professional who is treating the employee or the family member indicating the need for the leave and, if possible, the number of days of leave. For leave due to domestic or sexual violence, reasonable documentation may include things such as medical documentation, a law enforcement agency record or report, a court order, or documentation from a social worker, counselor, member of the clergy, attorney, or certified domestic violence specialist.

Impact on Local Paid Sick Leave Ordinances
The Act expressly preempts all local paid sick leave laws in New Jersey. Furthermore, it prohibits counties and municipalities from enacting any new ordinance, resolution, law, rule, or regulation regarding earned sick leave.

Employer Recordkeeping and Notification
The Act contains recordkeeping and notification requirements. Businesses must maintain records documenting hours worked and earned sick leave used by employees. Businesses must maintain these records for a period of five years and they must be made available for inspection upon request by the Department of Labor and Workforce Development.

Businesses must also post a notification in the workplace and provide individual notice to each employee within 30 days after the Department of Labor issues the notification and whenever a new employee is hired. For a copy of the Act, please click on the link provided. 

Coverage: Employers with employee in New Jersey

Effective: October 29, 2018

Action Required: Additional guidance interpreting the new law is still forthcoming from the state. Once guidance is issued on the law’s interpretation, our Sick Leave Toolkit will be updated to reflect the additional guidance. The updated Toolkit will be available on FormSource in the Leave and Return to Work section or in your Forms Library, as applicable. The Toolkit currently includes information about the law that has been made available to date.

As always, please be sure to contact your HR Business Partner if you have any questions.

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