HR Alerts

Feb 2026

On January 16, 2026, the New Jersey Division on Civil Rights (DCR) issued guidance clarifying how language-based practices may violate the New Jersey Law Against Discrimination (NJLAD). While the guidance does not create new legal obligations, it signals increased enforcement focus on workplace policies involving language, accents, and communication. Routine language rules, if not carefully justified, can expose employers to discrimination claims even absent discriminatory intent.

The DCR explains that although language itself is not a protected characteristic, it is closely tied to protected traits such as national origin, ancestry, nationality, race, religion, and disability. As a result, language‑related decisions may be unlawful if they function as a proxy for discrimination or disproportionately impact protected groups.

Common risk areas include accent bias in hiring or promotion, overly broad English‑only or fluency requirements, and failure to address language‑based harassment. Even neutral policies may create liability if they lack business necessity.

Language requirements may be lawful when they qualify as a bona fide occupational qualification (BFOQ)—meaning the language skill is genuinely needed to perform core job duties. To assess business necessity, employers should ask whether the language requirement is tied to safety, effective communication, regulatory obligations, or essential job functions—and whether a less discriminatory alternative could meet the same need.

Jan 2026

Governor Murphy has signed legislation expanding the New Jersey Family Leave Act (NJFLA), significantly broadening employer coverage and employee eligibility.

Effective under the new law, the employer coverage threshold is reduced from 30 or more employees to 15 or more employees. As a result, many smaller employers that were previously exempt are now subject to NJFLA requirements.

The law also revises employee eligibility standards. Employees will now qualify for NJFLA leave after they have been employed for at least three months and worked 250 hours in the 12 month period immediately preceding their need for leave. Previously, eligibility required 12 months of employment and at least 1,000 hours worked.

Importantly, the revised eligibility requirements apply to all covered employers, not solely those newly brought under the statute due to the lower employee threshold. Employers should review their leave policies and management practices to ensure compliance.

These changes will become effective in July 2026.

Dec 2025

The New Jersey legislature’s lame duck session is underway in Trenton, and several employment-related bills advancing this session could impact HR compliance and workforce policies, including:

• A3451 – Family Leave Expansion: Gradually reduces the employer size threshold from 30 to 5 employees, expanding eligibility for family leave job protection.
• A4182 – Cannabis Industry Employment: Addresses conditions of employment for certain cannabis workers.
• S4385 – Non-Compete Ban: Would prohibit non-compete clauses, affecting current and future agreements.

Also Watch: The Department of Labor and Workforce Development has yet to finalize regulations on New Jersey’s ABC Test for determining independent contractor or employee classification. These regulations, if finalized, carry implications for wages, benefits, and tax compliance.

We’ll continue tracking developments and provide updates as warranted.

Nov 2025

The U.S. Department of Homeland Security (DHS) has issued an interim final rule eliminating the practice of automatically extending employment authorization documents (EADs) for most noncitizens who timely file renewal applications, starting October 30, 2025.Until now, many individuals who filed EAD renewal applications were allowed to keep working while waiting for their new card. However, under this new rule, automatic extensions will stop for most applicants.Employers can encourage workers to file renewal applications 120–180 days before their EAD expires to avoid a work gap.Read the DHS press release here.

Sep 2025

The NJ Department of Labor has proposed increases for the maximum weekly benefits for claims filed in 2026:    Workers’ Compensation Rate: $1,199 per week    Temporary Disability Benefit Rate: $1,119 per week    Family Leave Insurance: $1,119 per week    Unemployment Compensation Rate: $905 per week

Oct 2025

UPDATE: E-Verify Resumes OperationsUSCIS has reopened the E-Verify portal.  Employers who participate in E‑Verify must create an E‑Verify case by Tuesday, Oct. 14 for each employee hired while E‑Verify was not available. You must use the hire date from the employee’s Form I‑9 when creating the E‑Verify case. If you could not create an E‑Verify case by the third business day after the employee began work for pay because E‑Verify was unavailable, E‑Verify will prompt you during case creation to provide a reason for the delay. Select “Other” from the “Select a Reason for Delay” drop-down menu and enter “E‑Verify not Available” as the specific reason in the “Reason for Delay” text box. The days E‑Verify was unavailable will not count toward the three business days employers usually have to create a case in E-Verify.  Read Updated USCIS Guidance here.*********************************************************************Due to the federal government shutdown, the E-Verify system is currently inaccessible. Employers cannot create or update cases, run reports, or access other E-Verify functions during this time.Employers must continue to comply with Form I-9 requirements, which remain unchanged. Form I-9 must still be completed within three business days of an employee’s start date. However, the “three-day rule” for E-Verify case creation has been suspended for the duration of the shutdown. Employers will not be penalized for delayed case submissions once the system is restored.Read USCIS Guidance here.

Sep 2025

On September 3, 2025, Governor Murphy signed legislation into law prohibiting employers from requiring employees to attend meetings or communications about political, religious, or union-related matters.Key provisions:Employees cannot be compelled to attend meetings on politics, religion, or union activity.Employees cannot be disciplined or retaliated against for refusing to participate.Employees may bring a civil action within 90 days if their rights are violated.Employers must post a notice of employee rights under the law. **Stay tuned for poster availability**Effective date: December 2, 2025. 

Aug 2025

The federal Department of Labor (DOL) officially revived the Payroll Audit Independent Determination (PAID) Program, a voluntary compliance initiative that had been dormant since 2021. Originally launched in 2018, the PAID Program was designed to help employers proactively correct wage and hour violations under the Fair Labor Standards Act (FLSA). The updated version now also includes violations under the Family and Medical Leave Act (FMLA).The PAID program offers employers an opportunity to address potential wage or leave violations without the risk or burden of litigation. If your organization suspects it may have underpaid employees or mishandled leave entitlements, you can voluntarily conduct a self-audit and work with the DOL toward resolutions which may include paying back wages and making other changes to your policies.Despite these benefits, employers should proceed with caution: participation in the PAID Program does not shield you from liability under state or local laws, and employees are free to reject back wages offered through the program in favor of pursuing legal action under New Jersey’s wage and hour laws. For example, under New Jersey’s Wage Theft Act – which has a six-year statute of limitations – employees who prove their employer acted with willful or reckless disregard of the law would be entitled to liquidated damages up to 200% of the wages due.It’s also important to note that participation in the PAID Program is not anonymous. Businesses must formally apply and identify themselves to the DOL, and there is no guarantee of acceptance. If accepted, you’ll be required to certify compliance with either the FLSA or FMLA, depending on the nature of the violations.Given the complexity and potential legal exposure, EANJ encourages employers to consult with legal counsel before deciding to participate. A well-executed self-audit can help you identify and correct issues before they escalate, but employers must undertake the audit carefully and with a full understanding of the PAID Program’s limitations and requirements. 

Jul 2025

The New Jersey Department of Labor and Workforce Development (NJDOL) has announced that state unemployment insurance (UI) contributions have exceeded expectations, making it possible to lower the UI tax rate for employers beginning in the new fiscal year on July 1, 2025.As a result, employer UI contribution rates will shift from the current “Column D” range of 0.6% to 6.4% to the lower “Column C” range of 0.5% to 5.8%. This adjustment is projected to save employers approximately $300 million in the upcoming fiscal year.Employer contribution rates to the Unemployment Insurance (UI) Trust Fund are based on two key factors. The first is the overall status of the fund, which determines the applicable column of the UI tax table for all New Jersey employers. The second is each employer’s individual experience with unemployment claims, which dictates their specific rate within that column.This lowering of the UI contribution rate for businesses indicates significant recovery for the UI Trust Fund, which was heavily impacted by the Covid-19 pandemic.

Jun 2025

Did you know that NJ’s Department of Labor and Workforce Development (NJDOL) is soliciting your comments regarding new rules it wants to implement concerning the ABC test?  The NJDOL published a Notice of Proposal in the New Jersey Register on May 5, 2025, seeking public comments, and the original 60-day comment period was scheduled to end on July 4, 2025. However, based on the responses it received thus far, the NJDOL has decided to extend the public comment period by 30 days; the public comment period will now end on August 6, 2025. Now is the time to get up to speed.NJDOL is tasked with enforcing the state’s prohibition against misclassifying employees as independent contractors. Since 2015, the NJDOL, NJ courts and employers alike have applied the 3-prong “ABC test” (first established by the New Jersey’s Supreme Court in a case where an “independent contractor” sought unemployment insurance benefits) to determine whether workers are independent contractors or actually employees entitled to not just unemployment insurance benefits, but also other state-mandated protections and benefits like minimum wage, overtime, short term disability, and earned sick leave. NJDOL now wants to extend the test formally to determine a worker’s eligibility for the aforementioned state benefits and codify the agency’s interpretation of the ABC test. It has proposed these new rules to achieve those goals.While the ABC test has been around for 10 years, this will be the first time the NJDOL has created rules showing us how it interprets and will enforce the test going forward. Will the proposed rules be “business as usual” for your organization or will it represent a departure from what you understood to be NJDOL’s past enforcement practices? More importantly, will the rules change some of your independent contractors into employees? Here is a summary of how the proposed rules may impact your businessProng AThe worker may be deemed to be an employee unless the employer can prove that it does not control the worker’s performance of the required tasks.What the law says(A) Such individual has been and will continue to be free from control or direction over the performance of such service, both under his contract of service and in fact;How NJDOL interprets (and will enforce) key terms under the proposed ruleUnder the NJDOL’s interpretation of the ABC test, a business cannot actually control the worker does the job or even reserve the right to do so. When assessing whether a worker is free from control, the NJDOL will look at several factors, including but not limited to:Whether the person works set hours or specific jobs;Whether the employer can control how the work is done;Whether the work must be done personally by the individual;Whether the employer negotiates or secures the work;Whether the employer sets the pay rate;Whether the individual bears any financial risk;Whether the person must be on call or available at set times;Whether the employer restricts the person’s ability to work for others;Whether the employer provides training to the individual.An employer that engages in any of the foregoing activities might be considered to have controlled the employee.Prong BWhat the law says(B) Such service is either outside the usual course of the business for which such service is performed, or that such service is performed outside of all the places of business of the enterprise for which such service is performed; andHow NJDOL interprets (and will enforce) key terms under the proposed ruleWhen considering whether the worker is outside the employer’s “usual course of business,” the NJDOL defines the scope of the employer’s business broadly to include all of its revenue-generating activities as well as its provision of goods or services. By way of example, the NJDOL interprets a dentist hiring a cleaner, or a restaurant hiring a musician, to be outside the usual course of business; however, the NJDOL interprets a transport company hiring a driver, or a drywall company hiring an installer to be within the business’s usual course of business.Similarly, the NJDOL interprets the “places of business” as locations where the employer has a physical presence or conducts essential operations. Under the NJDOL’s interpretation, a client’s location can count as the employer’s place of business if the service performed there is essential to the business.• Examples: A drywall company’s work at a client’s home is considered within its business location; carpet installation by a carpet retailer is not.• Airplanes (for airlines) or trucks (for trucking companies) are places of business; unrelated locations are not.If the worker’s service is similar to work your employees do or they perform the work at your location, the NJDOL may consider that evidence that they’re your employee.Prong CWhat the law says(C) Such individual is customarily engaged in an independently established trade, occupation, profession or business.How NJDOL interprets (and will enforce) key terms under the proposed ruleWhen considering whether a worker is independently engaged in a trade, occupation, profession, or business, the NJDOL will consider, among other things, the longevity of the worker’s business, as well as the worker’s customer base, business location, income sources, employees, investment, rate-setting, and advertising. The NJDOL’s commentary further indicates that the agency is not swayed by contract designations; worker’s business must exist and be viable independent of the employer. Simply having multiple clients, a license, business registration, insurance, or a 1099 form does not automatically establish independent contractor status.Specifically, the NJDOL will consider among other things:1. The duration, strength, and viability of the individual’s business (independent of the putative employer); 2. The number of customers of the individual’s business and the volume of business from each respective customer; 3. The amount of remuneration the individual receives from the putative employer compared to the amount of remuneration the individual receives from others in the same industry; 4. The number of employees of the individual’s business; 5. The extent of the individual’s investment in their own tools, equipment, vehicles, buildings, infrastructure, and other resources; 6. Whether the individual sets their own rate of pay; and 7. Whether the individual advertises, maintains a visible business location, and is available to work in the relevant market.”No single factor will be decisive; the NJDOL will consider the total relationship and interaction between the worker and the business to determine whether the worker’s trade, occupation, profession or business stands on it own.How many of your independent contractors can satisfy these factors?

Document

Access ABC Chart Here.pdf