Why New Jersey HR Compliance Is Unique
New Jersey has some of the most comprehensive worker protection laws on the East Coast. From mandatory earned sick leave to the nation-first SAFE Act (protecting domestic violence victims), stricter WARN Act requirements, and a state-run temporary disability insurance program, NJ employers face layered compliance obligations.
If you're running a New Jersey business, your HR software must handle compliance requirements that go far beyond federal minimums:
- NJ Earned Sick Leave (1 hour per 30 hours worked for all employees)
- NJ SAFE Act (unpaid leave for domestic/sexual violence victims)
- NJ WARN Act (stricter than federal: 60 days notice, lower thresholds)
- Temporary Disability Insurance (TDI) (state-mandated employee-funded benefits)
- Family Leave Insurance (FLI) (12 weeks paid bonding/family care)
- NJ Family Leave Act (NJFLA) (job-protected leave for smaller employers)
- Gender equity pay laws (salary history ban, equal pay enforcement)
- Ban the Box (criminal history inquiry restrictions)
đź’° The Real Cost of New Jersey Non-Compliance
- Earned sick leave violations: $250-$500 per violation + back pay + penalties up to $2,000
- SAFE Act violations: Damages, back pay, reinstatement, attorney fees + civil penalties
- WARN Act violations: 60 days back pay + benefits for each affected employee
- TDI/FLI non-compliance: Interest, penalties, and potential criminal charges for willful non-payment
- Salary history ban: $1,000 first offense, $5,000 subsequent + civil damages
- Equal pay violations: Up to 6 years back pay + liquidated damages + attorney fees
New Jersey's Unique HR Requirements
1. NJ Earned Sick Leave Law
New Jersey requires all employers to provide earned sick leave at a rate of 1 hour per 30 hours worked. This applies to all employees—full-time, part-time, temporary, and seasonal—from day one.
Key Rules:
- Accrual: 1 hour per 30 hours worked
- Cap: 40 hours earned per year (can cap usage at 40, but accrual continues)
- Carryover: Unused time carries over (but can cap total balance at 40 hours)
- Usage after 120 days: Employees can use after 120 calendar days of employment
- Allowed uses: Employee/family illness, preventive care, victim services (domestic violence)
- No retaliation: Firing or penalizing employees for using sick leave is prohibited
Software feature needed: Automatic 1:30 accrual, 120-day waiting period tracking, carryover with 40-hour cap, usage logging
2. NJ Security and Financial Empowerment (SAFE) Act
New Jersey's SAFE Act was the first state law to provide job-protected leave for victims of domestic or sexual violence. Employers with 25+ employees must provide up to 20 days unpaid leave per year.
Coverage & Benefits:
- Threshold: 25+ employees
- Eligibility: Victims of domestic/sexual violence (or their family members)
- Leave amount: 20 days per 12-month period (unpaid, but can use PTO)
- Allowed uses: Medical treatment, counseling, legal proceedings, safety planning, relocation
- Confidentiality: Employers must keep all information confidential
- Job protection: Must restore employee to same/equivalent position
- No retaliation: Firing or discriminating prohibited
Software feature needed: SAFE Act leave tracking (separate from other leave), confidential documentation, job protection workflows
3. NJ WARN Act (Millville Dallas Airmotive Plant Job Loss Notification Act)
New Jersey's WARN Act is stricter than federal WARN. It requires 60 days advance notice for mass layoffs or plant closings, with broader coverage and lower thresholds than federal law.
NJ WARN Requirements:
- Threshold: 50+ employees (federal WARN is 100+)
- Triggers:
- Plant closing affecting 50+ employees
- Mass layoff of 500+ employees
- Mass layoff of 50-499 employees if 33%+ of workforce
- Relocation more than 50 miles away
- Notice period: 60 days (same as federal)
- Penalties: Back pay + benefits for each day of violation (up to 60 days)
- Notice to: Employees, union, NJ Dept of Labor, local government
Software feature needed: Headcount tracking, WARN threshold alerts, notice generation and distribution workflows
4. Temporary Disability Insurance (TDI) & Family Leave Insurance (FLI)
New Jersey requires employers to provide Temporary Disability Insurance (TDI) for non-work-related injuries/illness and Family Leave Insurance (FLI) for bonding and family care. Both are employee-funded through payroll deductions.
TDI & FLI Details:
- TDI: Covers own non-work-related illness/injury (up to 26 weeks at 85% wages)
- FLI: Covers bonding with new child, family care (12 weeks at 85% wages, max $1,055/week in 2026)
- Employee-funded: Payroll deduction (0.47% of wages for TDI+FLI combined in 2026, up to wage base)
- State or private plan: Employers can use state plan or offer approved private plan
- Job protection: NJFLA provides job protection for FLI (employers 30+ employees)
Software feature needed: TDI/FLI withholding calculation, leave request workflows, coordination with paid leave, NJ DOL reporting
5. NJ Family Leave Act (NJFLA)
The NJ Family Leave Act provides job-protected leave for family care and bonding, separate from (but often running concurrently with) federal FMLA. NJFLA covers smaller employers (30+ employees vs. 50+ for FMLA).
NJFLA Protections:
- Threshold: 30+ employees (broader than federal FMLA's 50+)
- Eligibility: 12 months tenure, 1,000 hours worked
- Leave amount: 12 weeks per 24-month period
- Allowed uses: Bonding with new child, caring for seriously ill family member
- Job protection: Must restore to same/equivalent position
- Coordination: Runs concurrently with FMLA and FLI (but job protection separate)
Software feature needed: NJFLA eligibility tracking (30+ threshold), concurrent leave management, 24-month rolling calendar
6. Salary History Ban & Equal Pay Laws
New Jersey prohibits employers from asking about salary history and requires equal pay for substantially similar work, with strong anti-retaliation protections for employees who discuss wages.
Requirements:
- Salary history ban: Cannot ask about or screen applicants based on prior wages
- Voluntary disclosure: Applicants may voluntarily disclose (but you can't ask)
- Equal pay: Substantially similar work must receive equal pay regardless of protected class
- Wage discussion protection: Employees can discuss wages without retaliation
- Affirmative defense: Wage differences allowed if based on seniority, merit, production, or bona fide factor other than protected class
- Statute of limitations: 6 years for equal pay claims
Software feature needed: ATS screening to prevent salary history questions, pay equity analysis tools, compensation documentation
New Jersey HR Compliance Checklist
Use this checklist to audit your New Jersey compliance. If your HR software can't handle these, you're at risk.
âś… Payroll & Taxes
âś… Leave Management
âś… SAFE Act Compliance (25+ Employees)
âś… WARN Act (50+ Employees)
âś… Recruiting & Pay Equity
âś… Recordkeeping
Essential Software Features for New Jersey Employers
Don't just check boxes—make sure your HR software actively prevents violations:
🤒 NJ Earned Sick Leave Tracking
Your time-off system must handle:
- Automatic 1:30 accrual ratio
- 40-hour annual earning cap
- Carryover management (40-hour total balance cap option)
- 120-day waiting period before first use
- Balance display on pay stubs
- Usage tracking with allowed reasons
🛡️ SAFE Act Leave Management
For employers with 25+ employees:
- Separate SAFE Act leave category (20 days per year)
- Confidential documentation storage
- Job protection tracking (same/equivalent position)
- Integration with PTO policies (if employees elect to use paid time)
- Manager alerts for retaliation prevention
- Compliance training modules
đź’Ľ TDI & FLI Administration
Temporary disability & family leave insurance:
- Automatic TDI/FLI payroll deduction (0.47% up to wage base)
- Leave request workflows for TDI and FLI
- Coordination with NJFLA and federal FMLA
- NJ DOL reporting integration
- Private plan tracking (if not using state plan)
- Benefits calculation assistance
👨‍👩‍👧 NJFLA Job Protection Tracking
For employers with 30+ employees:
- Eligibility tracking (12 months tenure, 1,000 hours)
- 12-week leave entitlement per 24-month rolling period
- Concurrent leave management (FMLA + NJFLA + FLI)
- Job protection workflows (restore to same/equivalent)
- Return-to-work date tracking
🚨 WARN Act Monitoring (50+ Employees)
Mass layoff & plant closing alerts:
- Real-time headcount tracking against WARN thresholds
- Alerts when approaching 50/500 employee or 33% workforce triggers
- 60-day notice generation and distribution
- Multi-party notification workflows (employees, union, DOL, local gov)
- Compliance documentation storage
đź’° Pay Equity & Salary History Compliance
Protect against salary history and pay discrimination:
- ATS screening to block salary history questions
- Recruiter training modules on NJ salary history ban
- Pay equity analysis by protected class
- Compensation documentation (seniority, merit, production factors)
- Wage discussion policy templates (no retaliation)
- 6-year payroll record retention
Top HR Software for New Jersey Compliance
These platforms are specifically equipped to handle New Jersey's unique requirements:
1. Rippling
Best for: Multi-state companies with New Jersey employees
Rippling automatically handles NJ earned sick leave accrual, TDI/FLI withholdings, and NJFLA eligibility tracking. The platform's state-aware automation ensures NJ-specific rules apply only to eligible employees. Leave management coordinates TDI, FLI, FMLA, and NJFLA concurrently.
New Jersey-Specific Features:
- NJ earned sick leave (1:30 accrual, 40-hour cap, 120-day wait)
- TDI/FLI payroll deduction automation
- NJFLA eligibility and job protection tracking (30+ employees)
- SAFE Act leave management (25+ employees)
- Concurrent leave coordination (FMLA/NJFLA/FLI/TDI)
- NJ DOL reporting integration
Pricing: Starts at $8/user/month
Best for: 10-500 employees with multi-state operations
Read full Rippling review →2. Gusto
Best for: New Jersey small businesses (1-50 employees)
Gusto handles New Jersey payroll taxes including TDI/FLI withholdings automatically. Sick leave tracking applies the 1:30 accrual ratio with 120-day waiting period and 40-hour cap. Time-off policies can be customized for SAFE Act leave (25+ employees) and NJFLA (30+ employees).
New Jersey-Specific Features:
- TDI/FLI withholding automation
- NJ earned sick leave accrual (1 hour per 30 worked)
- 120-day waiting period enforcement
- New Jersey new hire reporting
- Custom leave policies (SAFE Act, NJFLA)
- NJ-specific tax forms
Pricing: $40/month + $6/person
Best for: New Jersey startups and small businesses
Read full Gusto review →3. ADP Workforce Now
Best for: Larger New Jersey employers (50-1000 employees)
ADP's New Jersey compliance module includes TDI/FLI administration, WARN Act monitoring tools, and comprehensive leave management for coordinating NJFLA, FMLA, FLI, and TDI. Their pay equity tools help New Jersey employers comply with equal pay and salary history ban requirements.
New Jersey-Specific Features:
- TDI/FLI claim workflows with NJ DOL integration
- NJFLA and SAFE Act leave tracking
- WARN Act headcount monitoring and notice generation
- NJ earned sick leave automation
- Pay equity analysis tools
- New Jersey compliance helpline
Pricing: Custom (typically $15-25/employee/month)
Best for: Mid-sized New Jersey businesses with dedicated HR
Read full ADP review →4. Paylocity
Best for: New Jersey businesses needing comprehensive leave management
Paylocity's leave management platform excels at tracking New Jersey's complex leave laws—TDI, FLI, NJFLA, FMLA, SAFE Act, and earned sick leave. The system coordinates all leave types automatically and ensures concurrent leave runs correctly. Document management supports confidential SAFE Act documentation.
New Jersey-Specific Features:
- Comprehensive leave coordination (TDI/FLI/NJFLA/FMLA/SAFE)
- SAFE Act confidential leave tracking (25+ employees)
- NJFLA job protection (30+ employees, 24-month rolling)
- NJ earned sick leave automation
- TDI/FLI withholding and reporting
- New Jersey policy templates
Pricing: Custom (typically $12-20/employee/month)
Best for: 50-1000 employees with complex leave needs
Read full Paylocity review →5. BambooHR
Best for: New Jersey SMBs prioritizing leave tracking
BambooHR's time-off tracking handles NJ earned sick leave accrual and custom leave policies for SAFE Act and NJFLA. While not a full payroll system, it integrates with New Jersey-compliant payroll providers that handle TDI/FLI withholdings. ATS features help prevent salary history questions.
New Jersey-Specific Features:
- NJ earned sick leave accrual tracking
- Custom leave policies (SAFE Act, NJFLA)
- 120-day waiting period enforcement
- Document storage for leave requests
- ATS configuration to block salary history questions
- Integration with NJ payroll providers (TDI/FLI)
Pricing: Custom (typically $5-8/employee/month)
Best for: 25-500 employees focused on HR workflows
Read full BambooHR review →6. Paycor
Best for: New Jersey businesses prioritizing compliance alerts
Paycor's compliance tools include WARN Act headcount monitoring, earned sick leave tracking, and TDI/FLI administration. The platform's analytics help identify when you're approaching WARN thresholds (50+ employees, mass layoff triggers) and provides proactive alerts.
New Jersey-Specific Features:
- WARN Act monitoring and alerts (50+ employees)
- NJ earned sick leave automation
- TDI/FLI withholding and reporting
- Leave tracking (NJFLA, SAFE Act)
- Headcount analytics for compliance thresholds
- Pay equity reporting tools
Pricing: Custom (typically $99+ base + per employee)
Best for: 50-500 employees with compliance focus
Read full Paycor review →New Jersey HR Compliance FAQ
How does NJ earned sick leave work?
New Jersey requires all employers to provide earned sick leave at 1 hour per 30 hours worked. Employees can earn up to 40 hours per year, and unused time carries over (though employers can cap the total balance at 40 hours). There's a 120-day waiting period before employees can use accrued sick leave. Allowed uses include employee/family illness, preventive care, and victim services for domestic violence. Retaliation for using sick leave is prohibited.
What is the NJ SAFE Act?
The NJ Security and Financial Empowerment (SAFE) Act was the first state law providing job-protected leave for victims of domestic or sexual violence. Employers with 25+ employees must provide up to 20 days of unpaid leave per year for victims to seek medical treatment, counseling, legal assistance, safety planning, or relocation. Employers must maintain confidentiality of all SAFE Act requests and provide job protection (restore to same/equivalent position). Retaliation is prohibited.
How is NJ WARN Act different from federal WARN?
New Jersey's WARN Act has a lower threshold than federal WARN: it applies to employers with 50+ employees (federal is 100+). Both require 60 days' advance notice. NJ WARN triggers include: plant closing affecting 50+ employees, mass layoff of 500+ employees, mass layoff of 50-499 if 33%+ of workforce, or relocation more than 50 miles away. Employers must notify employees, unions, the NJ Department of Labor, and local government. Penalties are the same: up to 60 days back pay and benefits per affected employee.
What are TDI and FLI in New Jersey?
Temporary Disability Insurance (TDI) covers non-work-related illness or injury for up to 26 weeks at 85% of wages. Family Leave Insurance (FLI) covers bonding with a new child or caring for a seriously ill family member for up to 12 weeks at 85% of wages (max $1,055/week in 2026). Both are employee-funded through a combined payroll deduction of 0.47% of wages (up to the annual wage base). Employers can use the state plan or offer an approved private plan. NJFLA provides job protection for FLI leave (employers with 30+ employees).
What is NJFLA and how does it differ from FMLA?
The NJ Family Leave Act (NJFLA) provides 12 weeks of job-protected leave per 24-month period for bonding with a new child or caring for a seriously ill family member. It covers employers with 30+ employees (vs. 50+ for federal FMLA) and has slightly different eligibility (1,000 hours worked vs. 1,250 for FMLA). NJFLA often runs concurrently with FMLA and FLI, but job protection is separate. Employees meeting both FMLA and NJFLA criteria get job protection under both laws.
Can I ask about salary history in New Jersey?
No. New Jersey prohibits employers from asking about an applicant's salary history (including benefits and other compensation) at any point in the hiring process. You cannot screen applicants based on salary history or require disclosure as a condition of employment. Applicants may voluntarily disclose their salary history, but you cannot ask. Violations result in penalties of $1,000 for the first offense and $5,000 for subsequent offenses, plus potential civil damages in discrimination lawsuits.
How do I coordinate TDI, FLI, FMLA, and NJFLA?
These programs often run concurrently: TDI/FLI provide wage replacement (paid benefits), while FMLA/NJFLA provide job protection. For example, an employee on maternity leave might use TDI for pregnancy recovery (up to 26 weeks, typically 6-8) + FLI for bonding (12 weeks), with FMLA/NJFLA running concurrently to protect their job. Best practice: Track all four programs simultaneously, notify employees which benefits/protections apply, and coordinate return-to-work dates. Most HRIS systems can manage concurrent leave if configured properly.
Do employees pay for TDI/FLI or does the employer?
Employees fund both TDI and FLI through payroll deductions. In 2026, the combined rate is 0.47% of wages up to the annual wage base ($161,400). Employers withhold this from employee paychecks and remit it to the state (or to a private plan provider if using an approved private plan). Employers do not contribute to TDI/FLI premiums—it's entirely employee-funded. However, employers are responsible for administering the program and ensuring proper withholding.
What are the penalties for violating New Jersey equal pay laws?
New Jersey's equal pay law provides up to 6 years of back pay for wage discrimination based on protected class. Employees can also recover liquidated damages equal to the back pay owed, plus attorney fees and court costs. The law explicitly prohibits retaliation against employees who discuss wages or file complaints. Violations can also trigger investigations by the New Jersey Division on Civil Rights, resulting in additional penalties and remediation orders.
How long must I keep New Jersey employment records?
New Jersey requires payroll records to be kept for at least 6 years (due to the 6-year statute of limitations for equal pay claims). Earned sick leave records should be kept for at least 5 years. TDI/FLI records should be kept for at least 4 years. WARN Act compliance records should be kept for 3 years. Best practice: retain all employment records for 7 years to cover potential audits, wage claims, and employment litigation.
Find the Right HR Software for Your New Jersey Business
Compare top New Jersey-compliant HR platforms, read user reviews, and find the best fit for your business size and industry.
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Related Resources
HR Compliance Checklist by State
Compare New Jersey's requirements to other states
Best Leave Management Software
Tools that handle complex leave coordination (TDI/FLI/FMLA/NJFLA)
Best Payroll Software
Find platforms that handle TDI/FLI withholding
Best Applicant Tracking Systems
ATS platforms that block salary history questions