Livingston, NJ – The Employers Association of New Jersey (EANJ) has released findings from a statewide survey assessing employer awareness, understanding, and administration of the New Jersey Earned Sick Leave (ESL) law.
Conducted as part of the Cultivating Access, Rights, and Equity (CARE) Grant Program, funded by the New Jersey Department of Labor and Workforce Development, the survey gathered responses from more than 160 employers across industries and business sizes from mid-January through March 2025.
Key Highlights
- High Confidence in Compliance: 69% of employers report strong confidence in their ability to comply with the law.
- Generous Leave Practices: Many employers exceed the law’s minimum requirements in terms of the benefits they offer. Nearly 40% provide more than the mandated 40 hours of paid sick leave annually, and 26% offer payout options when an employee separates from the organization.
- Varied Administration: While most employers allow leave carryover, approaches to accrual and usage vary, with some policies still falling short of legal requirements.
- Support Needs: Employers expressed a need for clearer guidance, model policies, and ongoing training.
“Our findings show that employers overwhelmingly want to comply with the law and, for many, the process has been relatively straightforward,” said Amy Vazquez, Vice President of EANJ. “However, employers, especially small employers, often struggle with understanding the basic tenets of the law and how to handle specific situations as they arise.”
Despite overall compliance confidence, employers continue to face challenges. One common issue is handling potential abuse or misuse of leave by employees, with some employers unsure how to manage these situations effectively. For example, one employer shared:
“We have had instances where an employee calls out sick on a day they were denied vacation due to scheduling. We know it isn’t a legitimate use of the day, but because we can’t ask for documentation for this one day absence, we are stuck.”
Other employers noted that they find patterns of frequent Friday/Monday calls outs.
Businesses with irregular or non-traditional schedules are especially impacted. As one respondent explained:
“As a business that employs very part-time, intermittent workers, one of the biggest challenges we face with paid sick time is aligning it with the flexible, on-demand nature of our workforce. All of our team members work when they have clients and are not on a regular, fixed schedule. This means they do not have consistent hours or guaranteed work each week. Because of this, offering paid sick time becomes complex.”
Employers also report confusion around accrual and carry-over rules, particularly for part-time, per diem, and seasonal staff. While the law mandates that unused sick time either be paid out or carried over at the end of the benefit year, 12% of respondents indicated they have a "use-it-or-lose-it" policy, which does not comply with these carry-over/payout requirements. Many also struggle with HR and payroll systems that are not easily configured to track earned leave.
When asked what additional support or resources would help their business better understand and comply with the law, employers reported a strong interest in training, access to model policies and clearer guidance on complex scenarios.
“Even well-intentioned employers can struggle with the law’s complexities,” said Vazquez. “By providing practical tools like model policies, training, and one-on-one support, we can give employers the confidence they need to administer leave consistently, fairly and most importantly, in full compliance with the law.”
View the full survey results here:
.
Join EANJ’s Amy Vazquez for a complimentary webinar on May 20th at 10am for an overview of NJ’s Earned Sick Leave Law and it’s requirements. Details & Registration.