New Jersey Paid Sick Leave Act

 In Planning, Small Business
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The New Jersey Paid Sick Leave Act was signed earlier this year by Governor Phil Murphy and will go into effect on October 29th. Once effective, it will require New Jersey employers of all sizes to provide up to 40 hours of paid sick leave per year to covered employees. It also applies to both public and private sector businesses.

 

 

Who Is Covered?
Covered employees: The act applies to most employees working in the state “for compensation.” The act expressly excludes employees in the construction industry employed under a collective bargaining agreement, per diem healthcare employees, and public employees who already have sick leave benefits.

Covered employers: The act broadly applies to any business entity, irrespective of size, that employs employees in the state of New Jersey, including a temporary help service firm. It expressly excludes public employers required to provide their employees with sick leave.

What Is The Law?
All businesses in New Jersey are required to provide paid sick leave as outlined by the law. Paid sick leave is available to every employee whether they are hourly, salaried, full-time or part-time. Under the act, current employees begin accruing sick time on the effective date of the act. New employees hired after the effective date of the act begin accruing sick time on the first date of their employment. Employees will accrue one hour of paid time for every 30 hours worked up to a maximum of 40 hours per year, and can begin using the time after 120 days of employment.

Your company’s business policies must comply or exceed the guidelines and regulations presented in the law. If an employer already offers a minimum of 40 hours’ worth of paid time off, the employer is in compliance with the law, as long as employees can use their time for the purposes cited under the law.

How Can Leave Be Used?
Employees can use their accrued sick-time for the following reasons:

  • Diagnosis, care or treatment of—or recovery from—an employee’s own mental or physical illness, including preventive medical care.
  • Aid or care for a covered family member during diagnosis, care or treatment of—or recovery from—the family member’s mental or physical illness, including preventive medical care.
  • Circumstances related to an employee’s or their family member’s status as a victim of domestic or sexual violence (including the need to obtain related medical treatment, seek counseling, relocate or participate in related legal services).
  • Closure of an employee’s workplace or of a school/childcare of an employee’s child because of a public official’s order relating to a public health emergency.
  • Time to attend a meeting requested or required by school staff to discuss a child’s health condition or disability.

The act broadly defines “family member” to include individuals related by blood to the employee or whose close association with the employee is the equivalent of a family relationship.

As you can see, just about every employer with workers in New Jersey will feel the impact of this new law in one way or another. Consequently, you should take action now to ensure you are compliant and ready for the law prior to October 29.

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