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  • The landscape of employment regulations can be tricky for employers and employees to navigate. In New Jersey, recent changes to the unemployment insurance law have left many employers wondering about their compliance obligations. Fortunately, the New Jersey Department of Labor (DOL) has released new guidance to help employers understand and adhere to the amended law’s requirements. Continue reading to understand what these changes mean for businesses in New Jersey.

    Delayed Rollout And Fair Enforcement

    One of the first aspects to note is that the New Jersey DOL recognizes employers’ challenges due to the delayed rollout of the amended law. In response, the agency has pledged to enforce the law fairly and equitably, considering the delayed guidance’s circumstances.

    A significant concern for employers was the lack of clear instructions on what information they must provide to the Division of Unemployment Insurance when an employee separates from their job. The department acknowledges this issue and clarifies that employers are not expected to provide this information until they receive specific instructions.

    Preparing For Compliance 

    The department actively provides clear directions to employers to address the informational gap. In addition, they’re developing an online form that will streamline the submission process for employers. While these developments are in progress, the department has already requested that all employers register with the online platform, Employer Access, and provide an email address to the Division. This measure ensures employers can communicate electronically, as required by the amended law.

    Employers must understand that the new law does not mandate immediate submission of the BC-10 form upon an employee’s separation from employment. Instead, the only information required to be provided immediately is when unemployment will begin. However, employees should note that they are not expected to provide this information until the department issues clear submission instructions.

    Enforcement Leniency

    The department has demonstrated a practical approach to enforcing the amended laws in a positive development for employers. They’ve indicated that they will not assess penalties against employers or block them from obtaining relief of benefit charges for failing to provide information immediately upon an employee’s separation. This leniency will apply while the department finalizes the submission directions and revises the necessary forms.

    Employers must continue to respond promptly to all requests from the Division for separation and wage information during this transitional period. While the amended law has shortened the appeal deadline from 10 days to seven days, the department is exercising discretion. They will accept appeals submitted within the previous 10-day limit until the transition from postal to electronic communication with employers is complete.

    Stay Updated By Partnering With A PEO

    In the ever-evolving landscape of employment regulations, it’s essential for employers to remain adaptable, proactive, and compliant. Keeping a close eye on updates from the DOL and seeking legal counsel when necessary will help businesses maintain a smooth transition to the amended unemployment insurance law.

    However, as a small business owner in New Jersey, adding another task to your plate is the last thing you want to do. Luckily, GMS, a professional employer organization (PEO), is here to lend a helping hand, navigating the intricacies of employment regulations. At GMS, we provide you and your business with the following:

    • Compliance expertise
    • Administrative relief
    • Tailored solutions
    • Cost savings
    • Risk mitigation
    • Employee support
    • Focus on growth
    • And so much more

    Ultimately, the constant change in employment regulations demands vigilance and expertise, which can be challenging for small business owners to manage independently. GMS, as a trusted PEO, offers a comprehensive solution that ensures compliance with the amended unemployment insurance law in New Jersey, streamlines your HR process, reduces costs, and allows you to focus on what you do best – growing your business. Contact us today to learn how we can help your New Jersey business thrive.

  • The Temporary Worker’s Bill of Rights or, Senate Bill 511, is now being considered with revisions made by New Jersey Governor Phil Murphy. After originally vetoing this bill, he claimed to “wholeheartedly support the overarching objectives,” and proposed additional revisions. If the legislature accepts his revisions, Gov. Phil Murphy said he will sign it into law.

    The Temporary Worker’s Bill Of Rights

    Senate Bill 511 would require businesses to provide temporary workers with:

    • At least minimum wage
    • Equal benefits that are offered to their full-time employees

    In addition, the bill aims to address discriminatory workplace practices and promote gender and racial pay equity. Pay equity is the idea of compensating employees with similar job functions with comparably equal pay, regardless of gender, race, or ethnicity. This means that if two different jobs contribute equal value to their employer’s operations, then employees in those positions should be receiving equal pay.

    Temporary agencies would also be required to keep written records of pertinent employment information, including:

    • Location of the worksite
    • Number of hours worked
    • Rate of pay for each employee
    • A copy of any contract pursuant to which the temporary worker is performing work
    • Any deduction from the worker’s pay

    Should this bill pass, it would allow temporary employees to sue the temporary labor agency and the third-party company for violations of the bill. Any business or temporary agency that violates the bill will be subject to civil penalties, such as financial penalties, with each day of not complying constituting a separate offense.

    Additionally, Gov. Murphy proposed that this bill only applies to occupations that are most vulnerable to exploitation which include the following:

    • Construction labor
    • Security services
    • Cleaning
    • Landscaping
    • Food service
    • And more

    He also calls for one million dollars to be appropriated for the Department of Labor and Workforce Development which ensures vigorous enforcement of the new protections.

    GMS Is Here To Help!

    Managing payroll and tax filings can be a strenuous task for small business owners. When you partner with GMS, you can take full advantage of online payroll software to simplify your business and save you valuable time. GMS provides a comprehensive web-based payroll solution to ensure compliance, accuracy, and peace of mind. Our online payroll software allows you to complete payroll in minutes and manage and access payroll information anywhere there’s an internet connection. Contact us today if you’re ready to focus your time and energy on growing your business instead of spending hours on payroll processing.

  • The first wave of minimum wage increases hit New Jersey employers July 1 after state legislators reached the deal earlier in the year. However, business owners need to prepare themselves for more than just this initial wage boost. Here’s what New Jersey employers need to know about New Jersey’s plan to raise the minimum wage to $15 – and why business owners across the country should pay attention.

    A small business owner accounting for increasing minimum wage.

    Breaking Down New Jersey’s New Minimum Wage Deal

    As of July 1, 2019, the minimum wage in New Jersey is now $10 per hour, but it won’t stay there. The new minimum wage deal instituted regular intervals for wage increases. The current $10 rate is set to increase to $11 starting Jan. 1, 2020. From there, it will go up by $1 every subsequent Jan. 1 until capping out at $15 in 2024.

    That’s not necessarily the end of any potential minimum wage increases, however. After 2024, any additional increases are “tied to the consumer price index for all urban wage earners and clerical workers, or CPI-W,” per NorthJersey.com. These changes would go into effect Jan. 1 of every year after 2024.

    Of course, there’s more to the new deal than just one set of minimum wage rollouts. There are some exceptions where certain types of workers will follow an alternative rollout. These include the following groups:

    Seasonal workers or employees with five or fewer workers

    The minimum wage rate is drawn out for these groups compared to the normal rollout. These types of employees are still currently at $8.85 per hour and follow a modified timeline.

    • $10.30 – Jan. 1, 2020
    • $11.10 – Jan. 1, 2021
    • $11.90 – Jan. 1, 2022
    • $12.70 – Jan. 1, 2023
    • $13.50 – Jan. 1, 2024
    • $14.30 – Jan. 1, 2025
    • $15 – Jan. 1, 2026
    • CPI-W-based increases plus parity to make up any remaining difference between standard minimum wage

    Tipped workers

    The take-home pay for these workers follows the same structure as the normal minimum wage rollout, although the how they’re paid is different. Tipped employees must receive at least minimum wage through the combination of salary and tips. The new rollout updates the salary floor for these workers accordingly:

    • $2.63 – July 1, 2019
    • $3.13 – Jan. 1, 2020
    • $4.13 – Jan. 1, 2021
    • $5.13 – Jan. 1, 2022
    • CPI-W-based increases starting 2025

    Agricultural workers

    Unlike other groups, agricultural workers will cap out at $12.50 before being tied to CPI-W. Like seasonal employees, these workers are still at $8.85 and follow an adjusted timeline

    • $10.30 – Jan. 1, 2020
    • $10.90 – Jan. 1, 2022
    • $11.70 – Jan. 1, 2023
    • $12.50 – Jan. 1, 2024
    • Any further changes depend on future wage raises

    How Employees Can Prepare for Minimum Wage Increases

    When it comes to minimum wage, there’s not much you can do as a business owner except prepare your business for the future. The first step for this is to convert your payroll every time minimum wage increases. If you don’t, the state of New Jersey can dole out fines of up to $1,000 and an “administrative fee equal to not less than 10 percent or more than 25 percent of any payment due to employees.”

    You’ll also need to evaluate how the slate of minimum wage increases affect your employees and what it will do to your profitability. This can mean planning out price adjustments for products and services over the next several years to account for the set wage increases. Meanwhile, you can potentially use the new rates to find better employees if you have the financial wiggle room to do so. Offering a little more than minimum wage may make your business more attractive and give you more interested candidates. From there, you can choose the best employees if you struggle to find good talent.

    Prepare for the Future with Proper HR Management

    The new minimum wage deal is a big change for business owners in New Jersey. However, employers outside of the state should also take notice. New Jersey, along with California and New York, serve as a sort of testing ground for changes like this. If the minimum wage increases do well in New Jersey, other states may look to adopt similar increases as well.

    Whether you own a business in New Jersey or some other state, it’s important to make sure you keep up with current and future legislature. As a Professional Employer Organization, GMS not only helps you stay compliant, we can save you time and stress by managing key business functions like payroll, benefits administration, and other important services.

    Ready to prepare your business for the future? Contact our New Jersey office or one of our many other locations today to talk to one of our experts about how we can help you make your business simpler, safer, and stronger.

  • After some big changes in 2019, it’s apparent that New Jersey takes wage theft very seriously. The state adopted the new Wage Theft Act (WTA) and amended its Wage and Hour Law back on Aug. 6, 2019, giving it some some of the toughest laws in the nation regarding wage and hour enforcement.

    The new WTA has a direct impact on business owners in New Jersey, but it’s important for those outside the state to be aware of the updates as well. The Garden State is a common testing ground for legislative changes, so other states may adopt similar laws over time. As such, let’s break down exactly what New Jersey’s wage and hour enforcement laws mean for business owners (and what they can do to avoid issues).

    A small business owner’s hand caught in a trap after attempting wage theft.

    How the WTA Impacts Business Owners

    The adoption of the WTA places a lot more pressure on employers when it comes to correctly paying wages to employees. Simply put, the new rules are clearly designed to discourage owners from committing wage theft – and severely punish those who do, unwittingly or not. There are a few notable takeaways that owners should know:

    The WTA increases how much employees can earn back

    Employers who owe workers will have to pay back more to the affected employees than in the past. These employees can claim increased damages for any missing overtime or other hours, which can total up to 200 percent of the unpaid wages in addition to the original pay. That means employers can be on the hook for three times back wages. Employers found guilty of wage theft may also have to pay reasonable costs and attorney fees for the affected employee, making the situation even more costly.

    The WTA increases the statute of limitations for back pay

    Previously, any claims for missing pay had to be made within two years of the incident. The WTA tripled that window, which means that aggrieved workers can now fight for back pay within a six-year time period.

    The WTA offers more protection against retaliation

    The new legislation makes a concerted effort to protect employees when they inquire about missing pay. Any adverse action – including discipline, demotion, or termination – made within 90 days of a complaint about their pay is automatically presumed to be a form of retaliation. The employer can appeal this presumption, but will need “clear and convincing evidence” to successfully argue that the adverse action was justified and not made in retaliation. Employers found guilty of retaliation must make right by the affected employee, which can include reinstating that person to his or her position if fired or demoted.

    The WTA enacts harsher financial and criminal penalties

    Not only does the WTA make it easier for employees to claim back pay, it also drops the hammer on businesses to deter them from making the same mistake again. Wage theft can result in both a notable fine and jail time, with increasing punishments for repeat offenders. The penalties are as follows:

    • First violation – $500 to $1,000 fine, imprisonment of 10 to 100 days, or both
    • Second violation – $1,000 to $2,000 fine, imprisonment of 10 to 100 days, or both
    • Third and subsequent violations – The employer is charged with a fourth degree crime and faces a $2,000 to $10,000 fine, imprisonment of up to 18 months, or both

    The WTA adds joint liability

    With the new rules, employers may also get in trouble even if they themselves didn’t commit wage theft. Violations committed by hired contractors make a business jointly responsible if any of these contractors commit anything deemed as wage theft or retaliation.

    Potential Danger Areas for Wage Theft

    Regardless of whether a discrepancy in an employee’s wages is a genuine accident or a purposeful act, New Jersey’s new rules are a clear indication that it’s more important than ever to accurately complete payroll. However, there are a couple instances where someone who isn’t a payroll professional could make a mistake. These can include:

    • Incorrectly paying the wrong rate for overtime hours
    • Not applying different hourly rates for employees who perform two different types of tasks 
    • Making a mistake when calling or faxing in payroll numbers

    It’s also important to consider the potential aftermath of a wage theft violation. Not only would you have to deal with the WTA-mandated penalties, word of that violation can spread to other employees. Even an accidental case of wage theft can create distrust among your employees and cause employees to be hypervigilant in the future. People are very sensitive about their pay, and an upset workforce can lead to less motivated employees and can even force good talent to leave for what they perceive to be a safer workplace.

    Protect Your Business Against Accidental Wage Theft and Other Payroll Issues

    Whether your business is based in New Jersey or somewhere else, it’s crucial to carefully record and maintain payroll documentation and employee hours. Not only will proper payroll management help protect your business against costly penalties, it’ll also ensure that your employees get exactly what they should each pay period.

    Of course, accurate payroll administration is easier said than done for someone without an experienced background. Managing payroll and filing taxes is a time-consuming process even when done accurately, which can take time away from other key business functions. Fortunately, GMS can help you manage your company’s payroll while you focus on growing your business.

    At GMS, we have the experts and processes in place to diligently process your payroll, manage and file taxes, and protect your business from costly compliance issues. We’ll do an HR analysis and identify new policies and procedures to help you protect your business from any current or future issues. Contact our New Jersey office or one of our other locations today about managing payroll or any other critical HR function for your business.

  • The state of family medical leave has been in flux in New Jersey over the past year. In February, Governor Phil Murphy signed an amendment to expand both New Jersey’s Family Leave Act (NJFLA) and Family Leave Insurance law (NJFLI). Those changes went into effect back on June 30, 2019, but they wouldn’t be the only adjustments to leave laws during the years.

    As of Oct. 7, 2019, business owners have a pair of new laws to plan for when it comes to how the state processes leave applications. With so many changes, it can be hard to keep all the new family leave updates straight. To help, here’s a breakdown of what business owners need to know about the changes to family leave in New Jersey over the course of 2019 – and why it might be important to business outside the Garden State as well.

    A mother taking family medical leave from work after the birth of her new child.

    What’s Going on with Family Leave Laws in New Jersey?

    Changes to the NJFLA and NJFLI

    While New Jersey previously had the NJFLA and NJFLI both in place, the new amendments essentially increased the level of benefits and protections for any eligible employees who wish to use family leave. As was the case before, New Jersey employers must provide family leave to eligible workers and cannot terminate them as a result of this leave. These employees must meet the following requirements to be considered eligible for family leave. 

    • Their employer has at least 30 employees (it was 50 employees prior to June 30, 2019) or is a government entity of any size
    • The employee has worked for that employer for at least a year, amassing at least 1,000 hours over the course of the last 12 months
    • The family leave is used to care for a child of younger than 1 year old or to care for a family member, or someone equivalent to family, with a serious health condition

    In addition to reducing the employer size threshold found in the federal Family and Medical Leave Act (FMLA), many other changes went into effect for both NJFLA and NJFLI in June. Here are some of the more notable differences that directly impact employers.

    Reduced notice requirements

    The FMLA requires advance notice of 30 days for leave requests. However, New Jersey’s amendment drops the advance notice requirement to 15 days for an intermittent leave request for family members with serious health conditions.

    Additional time for paid leave benefits

    Originally, New Jersey employees were only allowed six weeks of paid family leave within a 12-month period. The amendments double that amount to 12 weeks. It also increased intermittent paid leave benefits from 42 to 56 days in that same 12-month period, while extending intermittent use to foster care placement in addition to care for newborns or adopted children.

    Higher weekly benefit amount cap

    Employees taking paid leave earn a portion of their weekly salary. Currently, that rate is two-thirds of an employee’s weekly salary, with weekly payments capped at 53 percent of New Jersey’s statewide weekly remuneration. As of July 1, 2020, that pay will increase to 80 percent of a weekly salary, with weekly payments capped at 70 percent of the statewide remuneration.

    No more PTO mandates

    Previously, employers had the option to require employees to use up to two weeks of PTO in place of paid leave time. The new amendment bars employers from mandating PTO use, although it still gives employees the option to do so at their own discretion.

    October amendments

    While the latest amendments don’t offer as many changes as the ones that took effect in June, they do institute a pair of notable updates that aim to speed up the leave application process for people with new children.

    The first change saves employees the trouble of completing multiple applications for leave. With the new rules, the state will automatically process applications for leave insurance after an employee applies for temporary disability. The second update allows employees to submit pregnancy-related temporary disability claims up to 60 days ahead of the actual claim period as long as they know when they’ll expect to start their period of leave.

    Why Family Leave Changes Matter to Business Owners

    As with any legislative changes that affect businesses, the updates to NJFLA and NJFLI mean that business owners in New Jersey need to take precautions to make sure that their company is compliant with the new family leave rules. If your company falls in the 30-employees or more threshold, you’ll need to abide by all the new rules listed above. You’ll also want to update your employee handbook to include these new policies.

    If your company employs fewer than 30 people, you don’t have to follow the same details. However, you can mirror the new family leave laws even if you aren’t legally required to do so. Matching the new family leave rules can serve as a sign of good faith to your current employees – and help you stay competitive with bigger companies that have to honor the new rules. Whether you decide to modify your family leave policy or not, it’s important to document it in your handbook as well. 

    While these new updates only affect business owners in New Jersey, they may serve as a sign of things to come for people in other states. It’s not uncommon for New Jersey to act as a testing ground for legislative changes. As such, other states may mimic similar changes to their Family Medical Leave Act laws in the future.

    Whether it’s family leave or something else, it’s never easy to stay on top of all the legislative changes that can impact your business. At GMS, our team of experts can help you stay compliant with any new rules and regulations while helping your business simplify key HR functions like payroll and risk management. Contact our New Jersey office or one of our other locations today to talk to one of our experts about how we can help you save time and money through professional HR administration.

  • With small businesses still feeling the impact of COVID-19, the New Jersey Economic Development Authority (NJEDA) is attempting to help employers ease their financial burden. Applications for the NJEDA Small Business Emergency Assistance Grant Program may be closed, but the organization still has several other initiatives available for Garden State employers. Here’s a breakdown of some various programs and loans that will be available as of May 18, 2020 or in the near future.

    Small Business fund money for organizations in New Jersey. 

    Direct Loans

    If conventional financing is unavailable, NJEDA may provide loans up to $2 million for fixed assets and $750,000 for working capital. To qualify, a business must commit to create or retain one full-time job for every $65,000 of NJEDA exposure within a two-year period.

    Learn more about NJEDA’s direct loans.

    Micro Business Loan Program

    NJEDA’s Micro Business Loan Program allows for-profit businesses in New Jersey to access up to $50,000 for working capital or to purchase equipment. These loans are available to businesses with annual revenues of less than $1,500,000 in the most current fiscal year and have 10 or fewer full-time employees.

    Learn more about the Micro Business Loan Program.

    Small Business Fund

    If you’re struggling to get bank financing, NJEDA’s Small Business Fund offers some financial resources for creditworthy small, minority-owned, or women-owned businesses. The fund offers loans of up to $500,000 for businesses with up to $3 million in revenue. In addition, these businesses must have operated for at least one full year, while not-for-profits require at least three full years in operation.

    Learn more about the Small Business Fund.

    NJ Entrepreneur Support Program

    NJEDA’s Entrepreneur Support Program is a $5 million program aimed to help out entrepreneurial companies impacted by COVID-19 in the Garden State. The program encourages private sector investors to provide continued capital flows to companies they have provided funding to in the past. To help encourage these continued capital flows, NJEDA will guarantee up to 80 percent of the total investment amount, with a cap of $200,000 per company.

    Learn more about the NJ Entrepreneur Support Program.

    Small Business Emergency Assistance Guarantee Program

    NJEDA’s $10 million Small Business Emergency Assistance Program allows qualifying businesses to access working capital loans NJEDA’s existing Premier Lenders or Premier CDFI programs. The program provides 50 percent guarantees on these – along with waived fees – as long as the business or non-profit organization uses them to cover operating expenses while they were impacted by COVID-19. Each qualifying business or organization is eligible to receive relief up to an NJEDA exposure of $100,000.

    Learn more about the Small Business Emergency Assistance Guarantee Program.

    Emergency Technical Assistance Program

    While not a direct relief fund, NJEDA’s $150,000 Emergency Technical Assistance Program is designed to provide technical assistance to New Jersey-based companies applying for other State and U.S. Small Business Administration programs. NJEDA has partnered with four organizations to offer support through this program:

    • African American Chamber of Commerce of New Jersey (AACCNJ)
    • New Jersey State Veterans Chamber of Commerce
    • Rising Tide Capital
    • Statewide Hispanic Chamber of Commerce of New Jersey (SHCCNJ)

    As part of the program, the above organizations provide application assistance in a variety of ways, including preparing financial information, packaging application documentation, and other aid. In turn, these organizations will be based on completed and submitted SBA applications for the businesses they’ve helped.

    Learn more about the Emergency Technical Assistance Program.

    —

    Trying to navigate through these uncertain financial times? Contact GMS to talk to one of our experts about any HR, payroll, or other important questions you have today.

  • Over the past few years, a growing number of states and cities have banned the practice of using salary history to screen potential new employees. If you’re an employer in New Jersey, you’re now included in that trend. 

    Starting in 2020, it’s not a good idea for New Jersey employers to ask job applicants how much they made. The Garden State is now one of 17 states and multiple cities to outlaw pay history questions. While similar in many aspects, New Jersey’s version of the law does have some key differences that can help employers avoid potential penalties.

    A New Jersey employer asking for salary history, which is now banned in the state. 

    The Impacts of New Jersey’s Salary History Ban

    As with other states with salary history bans in place, Bill A1094 prohibits New Jersey employers from using past wages, benefits, and other salary history-related information to vet potential job applicants. The law also prevents employers from requiring an applicant’s salary history to satisfy any minimum or maximum criteria.

    If by chance an employer breaks the rules set in Bill A1094, the law has set penalties in place. Any employers who violate salary history ban are subject to civil penalties. These penalties scale based on the number of times an employer breaks the rules:

    • Up to $1,000 for the first violation
    • $5,000 for the second violation
    • $10,000 for each subsequent violation

    Exceptions

    Unlike other state and city bans on salary history inquiries, there are a few exceptions where employers are protected in New Jersey. The state’s ban includes a couple of examples of expressly permitted activities where the employer would not be in violation of the law.

    Voluntary release

    The law does not penalize employers if applicants voluntarily provide their salary history. Of course, this disclosure must be done by an applicant’s choice alone – it cannot be prompted or coerced at all. If this information is provided, the employer may then verify that the information provided is accurate and use it to determine compensation.

    Post-offer requests

    If an employer makes an offer of employment to an applicant that includes an explanation of the overall compensation package, the employer may request that the applicant provide a written authorization to confirm their salary history. If the authorization is given, this information can include both compensation and benefits.

    Hiring internal or past employees

    The law does not extend to any internal applicants with regards to promotions or transfers. As such, employers may consider salary information for applicants who already work at their company. In addition, employers may consider past salary history information if an applicant used to work for them, but only the information that they already have on file.

    Federal law exclusions

    If a federal law requires an applicant to disclose their salary history (or requires an employer to verify that history), an employer will not be penalized for collecting and using that information.

    Incentive or commission plans

    If an applicant is applying for a position with commission or incentive-based compensation components, an employer may inquire about past incentive and commission terms. However, these inquiries cannot extend to what the applicant’s earnings were under a previous employer’s plans.

    Collective bargaining agreements

    Employers may communicate with applicants about wages or salary rates if the job has certain salary guidelines set by collective bargaining agreements or laws.

    Evaluate Your Hiring Process to Protect Your Business

    While the salary history ban is a more recent law, it’s not the only regulation that employers need to consider during the hiring process. There are a variety of illegal interview questions that are off-limits for employers, such as inquiries about national origin and pregnancy status. As such, it’s important for employers to take the following steps to examine their internal processes to prevent possible violations.

    • Evaluate job applications, recruiter instructions, and background-check instructions to eliminate improper information requests
    • Examine interview templates or guidelines (and establish them if they do not already exist)
    • Treat every candidate the same during the interview process
    • Have more than one interviewer in the room and take notes to document the results

    Need an HR partner to prepare your business for new laws and other business administration headaches? Contact GMS’s New Jersey office or one of our other locations today to talk to one of our HR experts.