NJ Labor And Employment Law

The New Jersey Labor and Employment Law Blog is authored by Jay S. Becker and Joseph C. DeBlasio, shareholders in the Labor and Employment Law Practice Group, with support from the associates in the Group. It is dedicated to provide news and updates regarding all labor and employment matters throughout New Jersey.

New Minimum Wage Poster Issued by Department of Labor

August 11, 2016 | No Comments
Posted by Ari Burd

Businesses take note, the United States Department of Labor has revised its Fair Labor Standards Act (“FLSA”) Minimum Wage Poster. It’s time to take down your old poster and put up the new one in its place. A link to the new poster is found here:


Most businesses are covered by the FLSA and are required to have this poster in a conspicuous place for all employees to see. If you have any questions, feel free to reach out to the GH&C Labor & Employment Law department.


May 18, 2016 | No Comments
Posted by Jay S. Becker

In an effort to boost stagnant wages and honor his promise to ensure a fair wage for all, on May 18th, 2016 the Obama administration, through the U.S. Department of Labor, announced an updated overtime rule that more than doubles the overtime pay threshold of $23,660 a year ($455 a week), to $47,476 a year ($913 a week). Barring any successful legal challenge (mainly by the Republicans in Congress), the new rule takes effect on December 1, 2016 and it does not necessarily stop there. The rule permits additional automatic increases to the threshold amount every three years. Read more

An Arbitration Provision in Your Employee Handbook Is Not Enough

January 27, 2016 | Comments Off on An Arbitration Provision in Your Employee Handbook Is Not Enough
Posted by Ari Burd

Co-Authored By Jeri L. Abrams

The recent New Jersey Appellate Division decision in Morgan v. Raymours Furniture Co. has left little doubt that arbitration provisions contained in employee handbooks are unlikely to be enforceable.

Read more

ACA Update: Cadillac Tax Delayed Two More Years

December 16, 2015 | Comments Off on ACA Update: Cadillac Tax Delayed Two More Years
Posted by Ari Burd

Rumor has it the newest Congressional budget deal includes a two year delay on the so-called “Cadillac Tax.” This tax, originally set to go into effect on January 1, 2018 pursuant to the Affordable Care Act calls for a 40% excise tax on employer provided health coverage when benefits are worth more than $10,200 (individual) & $27,500 (family).  Needless to say, this tax would have affected a significant number of health plans, includes those offered to union members and employees of Fortune 500 companies.  As a result, there has been vocal opposition to this tax since it was announced.  For now, it appears that Congress has taken this criticism to heart and delayed enforcement of this tax until 2020…just in time for the next presidential election in 2020.

Holiday Pay

November 19, 2015 | Comments Off on Holiday Pay
Posted by Ari Burd

With the holidays fast approaching, a familiar question received by our office from employers is “must I pay my employees holiday pay?”  The answer to this question in New Jersey is no.  New Jersey employers are only required to pay employees for hours actually worked.  No pay is required to an employee who is given the day off for a holiday.  Moreover, an employer is under no duty to provide their employees premium pay when working on a holiday.   Typically, the only time an employer must pay an employee a rate that exceeds their normal rate is when the employee works in excess of 40 hours or if the employer has agreed to provide such benefits within a contract or an employee handbook. Read more

NLRB Decision to Have Wide Ranging Effect on Franchises & Companies using Staffing Agencies

August 28, 2015 | Comments Off on NLRB Decision to Have Wide Ranging Effect on Franchises & Companies using Staffing Agencies
Posted by Ari Burd

The National Labor Relations Board ruled yesterday that franchisors and companies using staffing agencies can be considered joint employers and, therefore, are jointly liable for labor violations.  The decision will potentially have major ramifications for franchises and could sabotage efforts by employers using staffing agencies to avoid the health care requirements of the Affordable Care Act. Read more

NJ Supreme Court Upholds Whistleblower Protections For ”Watchdog” Employees

July 16, 2015 | Comments Off on NJ Supreme Court Upholds Whistleblower Protections For ”Watchdog” Employees
Posted by Ari Burd

Co-Authored By Jeri L. Abrams

By a 5-0 decision, the NJ Supreme Court has ruled that all employees, including “watchdog” employees, are entitled to whistleblower protection under the New Jersey Conscientious Employee Protection Act (CEPA).  Under a previous Supreme Court decision, some defendant employers successfully argued that an employee cannot claim whistleblower protection if the employee merely blew the whistle in the ordinary course of his or her regular job duties.  By way of example, under this line of earlier reasoning, the chief auditor of a company could not claim whistleblower protection if he or she was fired in retaliation for detecting and reporting theft because identifying such theft is part of the auditor’s job duties.  Clearly aware of the problems created by such a loophole, the Supreme Court’s decision in Lippman v. Ethicon, Inc. has made clear that the nature of an employee’s position and duties cannot bar that employee from the protections afforded by CEPA. Read more

GH&C Alert: Supreme Court Decision Upholds Key Portion Of The Affordable Care Act (Obamacare)

June 25, 2015 | Comments Off on GH&C Alert: Supreme Court Decision Upholds Key Portion Of The Affordable Care Act (Obamacare)
Posted by Ari Burd

In a 6-3 decision, the United States Supreme Court has overruled the lower court decision in King vs. Burwell which reviewed key portions of the Affordable Care Act (“ACA”). The Court’s ruling in the matter upheld the validity of the federally-funded insurance exchanges and insures that the penalty provisions of the ACA will remain in force and applicable to employers. Specifically, the US Supreme Court has ruled that US government can continue subsidizing insurance in states that have not set up their own insurance exchanges. Had the Court ruled against such a practice, individuals in most states would have been unable to obtain subsidized insurance, a pre-requisite in order for the penalty provisions of the ACA to apply to employers. Given the Court’s ruling, employers must meet their ACA obligations or risk significant penalties in 2015 and beyond.

Pre-Employment Drug Testing in NJ

May 27, 2015 | Comments Off on Pre-Employment Drug Testing in NJ
Posted by Ari Burd

Unlike many states, New Jersey has few regulations regarding the drug testing of job applicants.  A private employer may require pre-employment drug testing.  The applicant should obviously sign a HIPAA compliant consent before undergoing the test.   Job offers may be conditioned on applicant’s passing a drug test, regardless of whether the position is safety-sensitive.  Unless the position is in the security field, the employer cannot deduct the cost of the test from the employee’s pay.  Employers should use the least intrusive testing measures and maintain confidentiality of results.   For more information about drug testing applicants and what other steps employers must take, please contact Ari G. Burd, Esq.

Retention of Employment Records in NJ

March 24, 2015 | Comments Off on Retention of Employment Records in NJ
Posted by Ari Burd

Federal and State law dictate how long employers must retain certain employee related records.  For instance, Form I-9 should be retained for either three (3) years after the date of hire or for one (1) year after employment is terminated, whichever is later.  Federal laws such as Title VII of the Civil Rights Act of 1964 and Americans with Disabilities Act (ADA) also require employers to maintain certain pre-employment records for no less than two years.  Finally, New Jersey law also comes into play with regard to record retention.  At a minimum, New Jersey employers should maintain documents comprising the employee personnel file for a period of not less than two years after separation of employment.

Of course knowing the minimum retention requirements is only half the battle.   Some employers would be best served by retaining certain documents as long as possible. Others, however, might wish to consider scheduling the destruction of certain types of records as soon as the minimum retention period has concluded.  For more information about your company’s obligations under the law and tips for minimizing liability, please contact Ari G. Burd or Jay S. Becker at the GHC Labor & Employment Department.

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