In New Jersey, effective hourly workforce management often centers on overtime and hours‑worked calculations.
State requirements can interact with federal standards, and in some areas, local rules may layer on additional obligations for employers.
Welcome to The Garden State, the home of The Jersey Turnpike, Tony Soprano, and pretty stellar wage and hourly laws for workers.
New Jersey maintains some of the strongest worker protections in the country, with a high statewide minimum wage, guaranteed paid sick leave, and a strict worker classification standard.
While the state preempts local governments from setting separate wage or leave ordinances, employers must still stay current on annual rate changes and enforcement updates.
Whether you employ workers directly or through an Employer of Record (EOR) like HireArt, understanding New Jersey’s wage and hour laws ensures compliance and supports a fair, transparent employment environment.
This blog is based on information available to HireArt as of October, 2025. HireArt does not provide tax, accounting or legal advice. This material has been prepared for informational purposes only, and should not be relied on for, tax, legal or accounting advice. Consult your own tax, legal and accounting advisors before engaging in any related activities or transactions.
New Jersey’s minimum wage applies statewide, with few exceptions.
As of 2025, most employees must be paid at least $15.49 per hour. Certain seasonal, small business, and agricultural employees may be subject to different rates under phased-in schedules. Local governments are preempted from setting their own minimum wages.
Employers must follow the higher applicable rate between state and local law.
All employers in New Jersey must provide paid sick leave under the state’s Earned Sick Leave Law.
Employees accrue one hour of sick leave for every 30 hours worked, up to 40 hours per year. Leave can be used for personal illness, family care, domestic violence, or school-closure–related absences. Unused hours may carry over annually, though use can be capped at 40 hours per year.
New Jersey law preempts local governments from adopting separate wage or leave standards.
This ensures uniform compliance statewide, eliminating the need for employers to navigate city-specific variations. Employers must still ensure internal policies meet or exceed the state’s minimum requirements.
New Jersey law does not require meal or rest breaks for adult employees.
However, minors under the age of 18 must receive at least a 30-minute meal break after five consecutive hours of work. Employers may provide optional breaks for adults under their own company policies or collective bargaining agreements (CBAs).
Payment of accrued paid time off (PTO) at termination depends on the employer’s written policy or contract.
New Jersey law does not require payout of unused time unless the employer has agreed to it in writing. To avoid disputes, companies should clearly state payout terms in their employee handbooks or offer letters.
New Jersey has no general statute requiring reimbursement for business-related expenses.
Employers are encouraged to maintain clear written policies describing which expenses are reimbursable and how employees can request repayment. Transparent documentation helps ensure compliance with state wage laws.
Employers must provide pay statements and issue final wages promptly upon separation.
Consistent and transparent payment practices are essential for maintaining compliance with New Jersey’s wage payment laws.
New Jersey applies the ABC test to determine whether a worker is an employee (W-2) or an independent contractor (1099).
Under this standard, a worker is presumed to be an employee unless the employer can prove all three test elements: (A) the worker is free from control, (B) the work is outside the usual course of business, and (C) the worker is engaged in an independent trade. Misclassification is aggressively enforced and can result in significant penalties and back pay obligations.
HireArt acts as an Employer of Record (EOR) to help companies manage compliance across New Jersey’s rigorous labor standards. Through HireArt, employers can:
By partnering with HireArt, employers can reduce compliance risk, ensure accuracy, and maintain a seamless employment experience across New Jersey.
