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New Jersey Paid Sick Leave Act Reminder

12/01/18

Author: ADP Admin/Wednesday, December 12, 2018/Categories: New Jersey

Overview
As noted previously, 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.

The New Jersey Department of Labor and Workforce Development has released on its website the required notice that must be posted and distributed to all New Jersey employees under the New Jersey Paid Sick Leave Act.

Effective Date: October 29, 2018

Details
Background

On May 2, 2018, New Jersey Governor Phil Murphy signed into law the New Jersey Paid Sick Leave Act (the “Act”). The Act requires businesses of all sizes to provide up to 40 hours of paid sick leave to employees during an employer-established benefit year (a consecutive 12-month period determined by the employer). Proposed Regulations further clarifying the law’s requirements were issued September 18, 2018. These proposed regulations are subject to change. The comment period on the proposed regulations is open until December 14, 2018, after which further revisions may be made by the State. ADP will keep its clients apprised of any changes.

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 need not 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.

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 civil or criminal proceedings related to same);
  • 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 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 treating the employee or the family member indicating the need for the leave and, if possible, number of days of leave. For leave due to domestic or sexual violence, reasonable documentation may include such things 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.

Employee Notice, Posters, and Policy

The Act requires that a notice be posted in a conspicuous place and distributed to all employees. Employees hired after the effective date must receive the notice at the time of hire. The proposed regulations provide that the required notice may be posted on “an internet site or intranet site” if the employer has such a site “for exclusive use by its employees and to which all employees have access.” The proposed regulations also state that the required notice may be distributed to employees by email.

The notice can be found on the government site at the following link: https://www.nj.gov/labor/forms_pdfs/mw565sickleaveposter.pdf

A policy can be included in the handbook as a method of notice, however, there is no requirement that the notice be provided through the handbook.

Impact on Local Paid Sick Leave Ordinances

The Act expressly pre-empts 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 those records must be made available for inspection upon request by the Department of Labor and Workforce Development.

For a copy of the Act please click on the link provided below. http://www.njleg.state.nj.us/2018/Bills/A2000/1827_R1.HTM

For further information on the Act, please see the articles previously published in the ADP Comprehensive Services Newsletter: New Jersey Department of Labor Release Proposed Paid Sick Leave Regulations  and New Jersey Enacts Paid Sick Leave Law

Call to Action: All employers should ensure full compliance with the Act, which includes posting and distributing the notice linked above.

As always, please be sure to contact your Service Team or Relationship Manager if you have any questions.

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