New Jersey Paid Sick Leave Update

Now that the New Jersey Paid Sick Leave law is a reality, additional guidance has been provided.
On September 13, the Labor and Workforce Development Division of Wage and Hour Compliance published proposed rules regarding the law.  Significant items in the proposed rules are:

  1. Paid Time Off (PTO) including leave types other than sick leave would be in compliance with the law, such as personal leave and vacation leave, so long as the PTO meets or exceeds all of the requirements.
  2. There are penalties for non-compliance which includes fines, imprisonment, or both.
  3. Records documenting hours worked and sick leave accrued/advanced, paid, and carried over must be maintained for five years.  These records must be kept at a place of employment or central office in New Jersey.
  4. A family member is any blood relative or anyone who has a close association with the employee that is equivalent to a family relationship.

The New Jersey Labor and Workforce Development Division of Wage and Hour Compliance also published Earned Sick Leave FAQs.  Significant items in the FAQs are:

  1. There is no proration for an employee who works within and outside New Jersey.
  2. An employee may not claim earned Sick Leave if they become sick on scheduled vacation since this was not scheduled time to work.
  3. Even though unused sick leave may be carried over, an employer is not required to permit the employee to use more than 40 hours of earned Sick Leave in any benefit year.

You may reference the full proposed rules and FAQs here.

For further information on this matter, please contact Alan S. Isaacs, CPA, MBA at [email protected].