New Jersey: Statewide Paid Sick Leave Begins October 2018

1. Effective Date: October 29, 2018
2. Eligibility:
   1. Covered Employee: All New Jersey employees of an employer.
   2. Employer: All private employers.
   3. Exemptions: Employees subject to a valid collective bargaining agreement, per diem hospital healthcare employees, or public employees provided sick leave and pay pursuant to any other state regulations.
3. Usage: Employees can begin using PSL on the 120^th calendar day after employment begins. PSL may be used as it is accrued.
4. Leave Amounts:
   1. Rate: One hour of paid sick leave per 30 hours worked beginning on the date of hire after the effective date of the Act, or as of the effective date of the Act for existing employees. If existing employees already have accrued the required amount of PSL as of the effective date of the Act, they are not required to accrue additional PSL for that benefit year.
   2. Cap: 40 hours per benefit year, defined as any period of 12 consecutive months. Employers may not change their benefit year without notifying the New Jersey Department of Labor and Workforce Development.
   3. Carryover: Employees may carry over up to 40 hours of PSL each year.
   4. Annual Payout: Employers may offer to employees a payout of accrued, unused PSL in the final month of the benefit year. Employees have 10 days from the date of the employer’s offer to agree to either a 50% or full payout of accrued, unused PSL.  Any remaining PSL must be carried forward to the following year up to the carryover cap.
   5. Frontload: Employers may choose to frontload PSL at the beginning of each benefit year.
   6. Rehire: Employees rehired within six months of employment must be instated to their previously accrued and unused leave balance. Successor employers must allow employees to use accrued and unused leave balances.
5. Recordkeeping and Notice Requirements:
   1. Workplace Posting: Employers must conspicuously display a notice issued by the commissioner describing employees’ rights under the Act.  Employers must also distribute a written copy of the notification to all employees no later than 30 days after the notice is issued, at time of hire for new employees, and anytime upon request.
   2. Recordkeeping: Employers must retain documentation of hours worked and earned PSL taken for a period of five years.
6. Employee Notice: Employees must provide notice of PSL usage seven days prior to the time off, if the need for leave is foreseeable. Certification can be required after three consecutive days of absence for unforeseeable use of PSL. Employers may prohibit the use of foreseeable PSL on certain dates, and may require documentation of unforeseeable PSL used on those dates.

AB 1827 contains a preemption provision and explicitly states that the statewide PSL provisions preempt any ordinance enacted by county or municipal governments.  Thus, local ordinances in Bloomfield, East Orange, Elizabeth, Irvington, Jersey City, Montclair, Morristown, Newark, New Brunswick, Paterson, Passaic, Plainfield, and Trenton will be rendered invalid upon the effective date of AB 1827.

Action Items

1. Review the text of AB 1827 here.
2. Prepare for implementation of the new PSL requirements, including having employee handbooks, policies, and payroll practices updated.
3. Have managers trained on PSL use and notice requirements.
4. Subscribers can call our HR On-Call Hotline at (888) 378-2456 for further assistance.

Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser.

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