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NJ Approves New Leave Law: A Game-Changer for Employee Leave Rights and Employer Responsibilities

On January 19, 2026, former Governor Phil Murphy signed into law a bill that significantly reshapes employee leave rights and employer obligations in New Jersey. The legislation expands leave coverage by lowering the minimum number of employees an organization must have in order to be subject to the law and by reducing the length of time an employee must work for an employer to become eligible for leave. The purpose of the law is to ensure that newer employees and employees of small organizations receive the protection of New Jersey’s leave law.

Previously, New Jersey’s Family Leave Act (“NJFLA”) provided employees working at organizations with 30 or more employees up to 12 weeks of leave to bond with a new child, care for a sick family member, or for other qualifying reasons, with guaranteed job reinstatement after the leave. To qualify, employees were required to have worked for their employer for at least 12 months and must have worked a minimum of 1,000 hours in the previous year.

The new law significantly eases eligibility requirements. Employees now qualify for leave and job protection after just three months of employment with their employer and only 250 hours worked in the past year. Furthermore, the law reduces the threshold for employers, meaning organizations with as few as 15 employees (down from the current 30) are now subject to these provisions. For public entities, employees are already eligible for NJFLA leave regardless of employer size, and the only change is the shortened eligibility period of three months of employment and 250 hours worked in the past year.

It is important to note that the law does not alter the fact that employees who take NJFLA leave are eligible to receive up to 85% of their average weekly wages, subject to the maximum weekly benefit cap, while on leave through the New Jersey Family Leave Insurance (“NJ-FLI”) program.

For employers, this legislation represents a major shift. With fewer eligibility requirements, a wider range of employees are now able to take leave with guarantees of job protection, creating new compliance obligations. Employers will need to update policies and procedures to ensure that they comply with these expanded requirements and properly manage leave requests.   

While a limited number of states already provide job protection for employees outside the scope of the Federal Family and Medical Leave Act (FMLA), New Jersey’s approach positions it as a leader in this area.

New Year’s Resolutions Every Workplace Should Implement in 2025

It’s hard to believe that another year has passed. Where does the time go these days? With 2025 upon us, employers have a great opportunity to review their internal labor and employment policies and procedures, which can help prevent potential workplace legal issues in the future. Here are six suggested New Year’s workplace resolutions for a successful 2025.

  1. When was the last time your employee handbook was reviewed and updated? Policies and procedures need to be revised periodically to keep current with ongoing changes in the law, especially in a place like New Jersey, where it is frequently the case that additional laws and judicial decisions impose new legal requirements. Therefore, 2025 presents a great opportunity for employers to review handbook policies and bring them up to date with any recent legal changes that impact your workplace, or to reflect changes in your workplace. Alternatively, if you do not have one yet, the upcoming new year provides a wonderful chance for your workplace to reap the benefits of having all relevant workplace policies kept in one collective document. Relatedly, when was the last time you conducted anti-harassment training for your workforce? While the pandemic years made this harder to do, virtual training is a great way to continue to meet all legally mandated employee training requirements, and more and more in person training is happening again.
     
  2. When was the last time your job descriptions were reviewed and updated?   Job descriptions are very important, especially in gauging compliance with mandated accommodation requirements for persons with disabilities under both federal and state discrimination laws. Ask yourself: do your job descriptions accurately reflect what an employee actually does in his/her job today?  Because courts often rely on how an employer defines the essential job functions of an employment position in assessing disability discrimination and failure to accommodate issues, it is important that all employers maintain updated job descriptions so there will be a point of reference if any issues arise as to what the essential functions of a job position are for accommodation purposes. Moreover, just like employee handbooks, if you do not have job descriptions today, the beginning of the upcoming year is a good time to commence preparing them.
     
  3. Are your employee leave policies up to date?  It is important under both federal and state leave laws that leave policies are accurate and current. One of the most effective ways of meeting this requirement is to have updated leave policies in an employee handbook, so use the beginning of next year to check that such policies are accurate and up to date. 
     
  4. When was the last time you conducted an audit of your payroll practices?  One of the chief concerns to examine here is ensuring that all your employees are properly classified as exempt versus non-exempt employees for purposes of their proper compensation under federal and state wage and hour laws. It is always a good idea for an employer to do a quick review of employment classifications each year in case changes need to be made based upon any modifications in employee job responsibilities or legal requirements. Also, as part of such an audit, make sure that you are paying your employees correctly. If eligible for overtime, are you calculating such payments right and using the appropriate rate of pay? Also, are you paying the correct minimum wage to your employees? Remember, the minimum wage in New Jersey goes up automatically each year, reaching $15.49 per hour in 2025. And, finally, how about independent contractors? If you are using them, are you meeting the stringent requirements here in New Jersey for creating those relationships to withstand legal scrutiny? Failure to follow independent contract rules can lead to significant wage and hour problems, and this topic has been a major subject of investigation in recent New Jersey Department of Labor audits in which I have been involved so the issue is being rigorously scrutinized by state officials.
     
  5. Are you properly performing background checks on current and prospective employees?  Remember, there are strict requirements concerning how such background checks are conducted under not only the Fair Credit Reporting Act but also under relevant federal employment discrimination laws such as Title VII. Several years ago, the Equal Employment Opportunity Commission issued a detailed compliance guidance on how the results of a background check can be utilized in assessing a person’s suitability for employment, and New Jersey also passed its own restrictions, i.e. Ban the Box rules and prohibitions on demanding that employees share information about their confidential social media sites, so it is important that all background check policies meet these requirements. 
     
  6. Are your drug testing policies in compliance with the requirements of both of New Jersey’s cannabis use laws, medicinal and recreational?  Take a moment to ensure that your testing policies are in line with the circumstances that an employer can legally require an employee drug screen and know when you can take adverse legal action based upon a positive screen for marijuana use.   

In sum, the new year provides a wonderful opportunity for employers to proactively evaluate internal policies and procedures to make 2025 a legally problem free year in your workplace. Take advantage of the opportunity so your business will not be singing the legal blues in 2025!

6 New Year’s Resolutions for Your Workplace in 2025

It is hard to believe that we are now in the fall and only a few months away from the start of a new year. Where does time go these days? With 2025 nearing, employers are presented with a wonderful opportunity to review internal policies/procedures and hopefully help avoid future workplace legal problems. Here are six suggested New Year’s Workplace Resolutions for a happy 2025.

  1. When was the last time your employee handbook was reviewed and updated? Policies and procedures need to be revised periodically to keep current with ongoing changes in the law, especially in a place like New Jersey, where it is frequently the case that additional laws and judicial decisions impose new legal requirements. Therefore, 2025 presents a great opportunity for employers to review handbook policies and bring them up to speed with any recent legal changes that impact your workplace, or to reflect changes in your workplace. Alternatively, if you do not have one yet, the upcoming new year provides a wonderful chance for your workplace to reap the benefits of having all relevant workplace policies stored in one collective document. Relatedly, when was the last time you conducted anti-harassment training for your workforce? While the pandemic years made this harder to do, virtual training is a great way to continue to meet all legally mandated employee training requirements, and more and more in person training is happening again. 
  2. When was the last time your job descriptions were reviewed and updated?   Job descriptions are very important, especially in gauging compliance with mandated accommodation requirements for persons with disabilities under both federal and state discrimination laws. Ask yourself: do your job descriptions accurately reflect what an employee actually does in his/her job today?  Because courts often rely on how an employer defines the essential job functions of an employment position in assessing disability discrimination and failure to accommodate issues, it is important that all employers maintain updated job descriptions so there will be a point of reference if any issues arise as to what the essential functions of a job position are for accommodation purposes. Moreover, just like employee handbooks, if you do not have job descriptions today, the beginning of the upcoming year is a good time to commence preparing them.
  3. Are your employee leave policies up to date?  It is important under both federal and state leave laws that leave policies are accurate and current. One of the most effective ways of meeting this requirement is to have updated leave policies in an employee handbook, so use the beginning of next year to check that such policies are accurate and up to date. 
  4. When was the last time you conducted an audit of your payroll practices?  One of the chief concerns to examine here is ensuring that all your employees are properly classified as exempt versus non-exempt employees for purposes of their proper compensation under federal and state wage and hour laws. It is always a good idea for an employer to do a quick review of employment classifications each year in case changes need to be made based upon any modifications in employee job responsibilities. Also, as part of such an audit, make sure that you are paying your employees correctly. If eligible for overtime, are you calculating such payments right and using the appropriate rate of pay? Also, are you paying the correct minimum wage to your employees? Remember, the minimum wage in New Jersey goes up automatically each year, reaching $15.13 per hour in 2024. And, finally, how about independent contractors? If you are using them, are you meeting the stringent requirements here in New Jersey for creating those relationships to withstand legal scrutiny? Failure to follow independent contract rules can lead to significant wage and hour problems, and this topic has been a major subject of investigation in recent New Jersey Department of Labor audits in which I have been involved.   
  5. Are you properly performing background checks on current and prospective employees?  Remember, there are strict requirements concerning how such background checks are conducted under not only the Fair Credit Reporting Act but also under relevant federal employment discrimination laws such as Title VII. Several years ago, the Equal Employment Opportunity Commission issued a detailed compliance guidance on how the results of a background check can be utilized in assessing a person’s suitability for employment, and New Jersey also passed its own restrictions, i.e. Ban the Box rules and prohibitions on demanding that employees share information about their confidential social media sites, so it is important that all background check policies meet these requirements. 
  6. Are your drug testing policies in compliance with the requirements of both of New Jersey’s cannabis use laws, medicinal and recreational?  Take a moment to ensure that your testing policies are in line with the circumstances that an employer can legally require an employee drug screen and know when you can take adverse legal action based upon a positive screen for marijuana use.   

In sum, the upcoming new year provides a wonderful opportunity for employers to proactively evaluate internal policies and procedures to make 2025 a legally problem free year in your workplace. Take advantage of the opportunity so your business will not be singing the legal blues in 2025! It is never too early to start laying out these goals and the foundation for achieving them.

Enforcement of FTC Non-Compete Rule Enjoined Nationwide

With competing federal court decisions currently existing on whether the Final Non-Compete Rule issued by the Federal Trade Commission was valid, and would go into effect on September 4, 2024, employers were left with a major predicament at their disposal. However, last week, employers breathed a sigh of relief after a federal judge in Texas issued a ruling invalidating this final rule while issuing a nationwide injunction precluding its enforcement anywhere in the United States. In issuing its final decision, the district judge determined that the FTC lacked the legal authority to promulgate such a rule. This means that employers will no longer have to meet the various requirements of the Final Non-Compete Rule. Thus, for now, all non-compete agreements in effect will remain enforceable for the foreseeable future, while the FTC contemplates its next move that could include filing an appeal of the Texas decision. 

We will continue to keep you informed of any new developments. No doubt, this will not be the last time that efforts are made to eliminate or greatly restrict non-compete restrictions. We have already seen many states impose limitations, and while it has not yet happened in New Jersey, many bills have floated around the Legislature that are designed to greatly restrict under what circumstances non-competes may be enforced.  So, for now, employers in New Jersey have dodged a legal bullet. Whether such continues in the future remains to be seen.     

An Update on FTC Non-Compete Rule

 As many of you know, back in April 2024, the Federal Trade Commission (“FTC”) adopted a final rule that would for all intents and purposes ban enforcement of almost all non-compete agreements. Since that time, I have received multiple questions about whether the rule will ever be enforced. Right now, the effective date of the rule is September 4, 2024, but unfortunately it is anyone’s guess as to whether the rule will ever be enforced.  

Shortly after enactment of the final rule, several lawsuits were filed challenging its validity and the authority of the FTC to enact such a rule. In these cases, the parties asked the courts to enjoin and stop enforcement of the rule. So far, the courts have split on this issue. In Texas, a federal judge found that the FTC lacked the power to implement the rule and preliminarily enjoined its enforcement, but it did so only against the plaintiffs in the case and not everywhere nationwide. More recently, just last week, a federal judge in Pennsylvania ruled to the contrary, finding that the rule is indeed enforceable and can go into effect on September 4. These decisions do little to clarify whether the FTC had the power to enact the final rule and also fail to provide the guidance that employers want and need in determining what will happen to existing non-compete agreements.

If the FTC final rule goes into effect on September 4, it will drastically change the non-compete horizon. Most non-compete agreements will be unenforceable, with the exception of highly compensated senior executive employees (i.e. those making at least $151,164), and employers will likewise need to provide written notices to employees letting them know that their non-compete restriction is no longer enforceable. So, for the next month, the best advice we can give on ultimate enforcement is to stay tuned and see if we have any additional litigation developments that provide any further clarity on what employers will need to do after September 4.

THE NLRB DOES IT AGAIN!

When Democrats took control of the White House in 2021, most experts expected that there would be a drastic change in the direction of the decisions of the National Labor Relations Board (“NLRB”), which had been up to that point a quite hospitable forum for employers during the prior administration. Since this change, as predicted, the NLRB has issued a series of decisions that are far more deferential in nature to employee interests, and in several cases, has in fact even reversed relatively recent NLRB precedent that set far more favorable legal rules and standards for employers. 

One case that was clearly in the cross hairs for possible reversal by the Board when the new administration took over in 2021 was the Boeing Co. case (2017). In Boeing Co., the Board adopted what it then believed was a more reasonable approach to evaluating whether facially neutral workplace rules violated federal labor law. The new Board was just waiting for a case to come before it that would provide a vehicle for overturning its Boeing Co. decision. In August 2023, the Board finally found that case, Stericycle, Inc. In this case, the Board seized upon the opportunity presented to drastically change the legal landscape for evaluating workplace rules and policies challenged as being violative of employee rights under federal law laws.

In Boeing Co., the NLRB previously held that it would no longer presume that workplace rules improperly interfered with employee rights simply because an employee could perceive that to be the possible case, and instead adopted a standard that would focus on the actual nature and extent of a rule’s impact on Section 7 rights, balancing that impact against the employer’s legitimate interests and justifications for the rule. Boeing created three categories of employer rules:

  • Rules that, when reasonably interpreted, do not interfere with the exercise of rights protected by the National Labor Relations Act (“NLRA”), or the potential adverse impact on protected rights of which is outweighed by justifications associated with the rule;
  • Rules that warrant individualized scrutiny in each case as to whether the rule would prohibit or interfere with NLRA rights, and if so, whether any adverse impact on NLRA-protected conduct is outweighed by legitimate employer justifications; and
  • Rules that are always unlawful because they would prohibit or limit NLRA-protected conduct where the adverse impact on NLRA rights is not outweighed by justifications associated with the rule.

The idea behind this more categorical approach was to give employers greater clarity in the kinds of rules that could be problematic for employers to implement in their workplace. Stericycle, Inc. has now reversed this standard, and in essence goes back to (and almost readopts) what for many years was the legally amorphous standard that Boeing Co. was designed to replace, a past standard that frequently premised findings of NLRA Section 7 violations upon the hypothetical possibility that a reasonable employee could conclude that their right to engage in protected activities was “chilled” by the rule.

Under the new standard announced by the NLRB, if a workplace rule is shown to have a “reasonable tendency” to chill employees from exercising Section 7 rights, it is presumptively illegal. This possible “tendency” is to be interpreted “from the perspective of an employee who is subject to the rule and economically dependent on the employer, and who also contemplates engaging in protected concerted activity.” According to the Board, the employer’s intent in creating the rule is “immaterial.” Now, what matters most is whether the employee could interpret the rule to have a coercive effect, even if the rule could also be reasonably interpreted as being non-coercive. Once that happens, the burden then falls on the employer to rebut this presumption of illegality by showing that the rule advances “a legitimate and substantial business interest” and that this interest could not be advanced by a more “narrowly tailored” rule, a far more dauting burden than what was placed upon employers by Boeing. 

Given this new standard, employers can expect that many sensible workplace rules that were adopted to create a harmonious workplace without any desire to curb employee rights will be closely scrutinized and potentially determined by the NLRB to violate employee rights under federal labor law. Therefore, more so than ever, employers are wise to conduct prompt legal reviews of their existing employee handbooks and other workplace policies to ensure that all employer rules and policies do not run afoul of this newly issued precedent from the NLRB.   

Yes, Virginia, Non-Compete Agreements are Still Enforceable in New Jersey

Over the last several weeks, as 2023 was drawing to a close, I received several questions about whether non-compete agreements are still enforceable in New Jersey. The confusion in this area is understandable. With efforts happening at the federal government level to ban non-compete agreements nationally, and initiatives working their way through the New Jersey legislature to radically modify the law on enforcement of such agreements here in New Jersey, no wonder employers are currently baffled about the present state of the law in this very important area.

As things currently stand, non-compete restrictions are still enforceable in New Jersey. None of the bills working their way through the New Jersey Legislature have succeeded yet and none are on the verge of being presented to the governor for enactment. So, at present, New Jersey law in this area remains as it has been for quite some time: that so long as non-compete agreements contain reasonable restrictions (in both time and geographical reach) and are narrowly tailored to serve legitimate business interests (such as protection of client relationships or proprietary information), they are still enforceable in New Jersey. 

On the federal level, the situation continues to evolve. The rule that the Federal Trade Commission (“FTC”) proposed back in January 2023 that would ban almost all non-compete restrictions nationally is still not in effect. While the period for public comment on the proposed rule has long passed, the FTC has still not formally adopted the rule and it is unclear when such action will happen, though some media outlets have reported based on internal agency sources that this could occur in April 2024. Even if that actually occurs, one can expect there to be legal challenges filed by private parties so it is unclear whether such a rule will ever be allowed to be enforced by the courts. This dynamic is even more legally unsettling since this legal fight over enforcement of the rule will be happening during an election year.

Along with the FTC, the National Labor Relations Board (“NLRB”) has also jumped into the fray in challenging the enforceability of non-compete restrictions. The General Counsel for the NLRB issued an enforcement guidance memo back in May 2023 that announced that, in theory, non-compete restrictions could under some circumstances infringe upon an employee’s right to engage in certain protected activities under federal labor law by restricting an employee’s access to future employment opportunities.  While noting that non-compete restrictions may be legitimate under certain limited circumstances, the memo does not provide any details on what those circumstances might be leaving employers with scant advice on what the General Counsel may view as legally viable restrictions. The good news for employers is that while the memo may reflect the views of the current General Counsel, it is not the law, meaning that it currently has no binding impact on enforceability of non-compete restrictions nationwide, though it could come into play for a litigant before the NLRB.

With 2024 around the corner, it should be an interesting year for non-compete legal developments. With this cascading environment of possible legal restrictions on enforcement, employers are wise to proceed cautiously in both how they draft non-compete agreements and in deciding from whom non-compete agreements are to be sought. Making sure that such agreements are narrowly tailored to serve legitimate business interests and that they are sought only from employees whose departure could indeed threaten the welfare of a business will go a long way in ensuring the enforceability of such arrangements.

May everyone have a happy and (legally) healthy 2024!           

6 New Year’s Resolutions for Your Workplace in 2024

It is hard to believe that we are now in the final month of 2023. Where does time go these days? With 2024 just around the corner, employers are presented with a wonderful opportunity to review internal policies/procedures and hopefully help avoid future workplace legal problems. Here are five suggested New Year’s Workplace Resolutions for a happy 2024.

  1. When was the last time your employee handbook was reviewed and updated? Policies and procedures need to be revised periodically to keep current with ongoing changes in the law, especially in a place like New Jersey, where it is frequently the case that additional laws and judicial decisions impose new legal requirements. Therefore, 2024 presents a great opportunity for employers to review handbook polices and bring them up to speed with any recent legal changes that impact your workplace, or to reflect changes in your workplace because of adjusting to doing business coming out of a pandemic, i.e., work from home policies. Alternatively, if you do not have one yet, the upcoming new year provides a wonderful chance for your workplace to reap the benefits of having all relevant workplace policies stored in one collective document. Relatedly, when was the last time you conducted anti-harassment training for your workforce? While the pandemic years made this harder to do, virtual trainings are a great way to continue to meet all legally mandated employee training requirements, and more and more in person trainings are happening again. 
  2. When was the last time your job descriptions were reviewed and updated?   Job descriptions are very important, especially in gauging compliance with mandated accommodation requirements for persons with disabilities under both federal and state discrimination laws. Ask yourself: do your job descriptions accurately reflect what an employee actually does in his/her job today?  Because courts often rely on how an employer defines the essential job functions of an employment position in assessing disability discrimination and failure to accommodate issues, it is important that all employers maintain updated job descriptions so there will be a point of reference if any issues arise as to what the essential functions of a job position are for accommodation purposes. Moreover, just like employee handbooks, if you do not have job descriptions today, the beginning of the upcoming year is a good time to commence preparing them.
  3. Are your employee leave policies up to date?  It is important under both federal and state leave laws that leave policies are accurate and current. One of the most effective ways of meeting this requirement is having updated leave policies in an employee handbook, so use the beginning of next year to check that such policies are accurate and up to date. 
  4. When was the last time you conducted an audit of your payroll practices?  One of the chief concerns to examine here is ensuring that all your employees are properly classified as exempt versus non-exempt employees for purposes of their proper compensation under federal and state wage and hour laws. It is always a good idea for an employer to do a quick review of employment classifications each year in case changes need to be made based upon any modifications in employee job responsibilities. Also, as part of such an audit, make sure that you are paying your employees correctly. If eligible for overtime, are you calculating such payments right and using the appropriate rate of pay? Also, are you paying the correct minimum wage to your employees? Remember, the minimum wage in New Jersey goes up automatically each year, reaching $15.13 per hour in 2024. And, finally, how about independent contractors? If you are using them, are you meeting the stringent requirements here in New Jersey for creating those relationships to withstand legal scrutiny? Failure to follow independent contract rules can lead to significant wage and hour problems, and this topic has been a major subject of investigation in recent New Jersey Department of Labor audits in which I have been involved.   
  5. Are you properly performing background checks on current and prospective employees?  Remember, there are strict requirements concerning how such background checks are conducted under not only the Fair Credit Reporting Act but also under relevant federal employment discrimination laws such as Title VII. Several years ago, the Equal Employment Opportunity Commission issued a detailed compliance guidance on how the results of a background check can be utilized in assessing a person’s suitability for employment, and New Jersey also passed its own restrictions, i.e. Ban the Box rules and prohibitions on demanding that employees share information about their confidential social media sites, so it is important that all background check policies meet these requirements. 
  6. Are your drug testing policies in compliance with the requirements of both of New Jersey’s cannabis use laws, medicinal and recreational?  Take a moment to ensure that your testing policies are in line with the circumstances that an employer can legally require an employee drug screen and know when you can take adverse legal action based upon a positive screen for marijuana use.    

In sum, the upcoming new year provides a wonderful opportunity for employers to proactively evaluate internal policies and procedures to make 2024 a legally problem free year in your workplace. Take advantage of the opportunity so your business will not be singing the legal blues in 2024!

What Can Employers Do About Employee Marijuana Use?

I recently had a representative of a contractor over to my home to provide an estimate for possible construction work. While the representative was looking at the area of my home where work was being contemplated, I detected a pungent odor that I have smelled before. The odor was certainly familiar to me given the number of concerts I have attended over my life, but I never expected to smell it on someone who was at my home during regular work hours pitching business for their employer. So, can you guess what that smell was? 

Yep, it was marijuana, and it got me thinking because many of my clients have told me that some of their employees now think that since recreational marijuana is legal in New Jersey, employees can partake of the drug anytime they want, even while they are at work performing services for their employer. They also think that their employers can do nothing to stop them. Well, those employees are dead wrong, and employers need to know what they can do legally to control (and even prevent) potential employee marijuana use.

As is made clear in both New Jersey’s recreational and medical marijuana laws, employers are not expected to accommodate marijuana use while an employee is on company property or during employer work hours. Both of these statutes explicitly allow employers to prohibit marijuana use while on company work time. In addition, employees are not allowed to show up to work under the influence of marijuana. Both New Jersey’s recreational and marijuana laws allow employers to punish employees who show up under the influence at work, and employers may even send employees to be tested if they suspect the employee is under the influence where the employer observes physical conduct or other behavior associated with being high on marijuana, such as slurred speech, difficulty walking, blood shot eyes, etc., and any other similar indicia associated with being under the influence of a drug. 

So, the next time an employee tells you as an employer that you have to allow them to use marijuana any time they want, you can tell them how gravely mistaken they are, and one of the best places an employer can do this is by having a strong drug and alcohol policy that advises employees in no uncertain terms that on-site use of marijuana, and workplace intoxication from the use of that drug or any other illegal substance, is prohibited and can lead to possible drug testing and potential disciplinary action. Take back your workplace by using the express tools that the New Jersey marijuana laws enable your company to use so you can protect your clients and customers from experiencing that “smell” when interacting with members of your workforce.                

5 New Year’s Resolutions For Your Workplace In 2023

It is hard to believe that we are only a few days from the start of December, the final month of 2022. Where does time go these days? With 2023 just around the corner, employers are presented with a wonderful opportunity to review internal policies/procedures and hopefully help avoid future workplace legal problems. Here are five suggested New Year’s Workplace Resolutions for 2023.

  1. When was the last time your employee handbook was reviewed and updated? Policies and procedures need to be revised periodically to keep current with ongoing changes in the law, especially in a place like New Jersey, where it is frequently the case that additional laws and judicial decisions impose new legal requirements. Therefore, 2023 presents a great opportunity for employers to review handbook polices and bring them up to speed with any recent legal changes that impact your workplace, or to reflect changes in your workplace because of adjusting to doing business coming out of a pandemic, i.e. work from home policies. Alternatively, if you do not have one yet, the upcoming new year provides a wonderful chance for your workplace to reap the benefits of having all relevant workplace policies stored in one collective document. Relatedly, when was the last time you conducted anti-harassment training for your workforce? While the pandemic made this harder to do, virtual trainings are a great way to continue to meet all mandated employee training requirements and in person trainings I am happy to say are starting a comeback. 
  2. When was the last time your job descriptions were reviewed and updated?   Job descriptions are very important, especially in gauging compliance with mandated accommodation requirements for persons with disabilities under both federal and state discrimination laws. Ask yourself: do your job descriptions accurately reflect what an employee actually does in his/her job today?  Because courts often rely on how an employer defines the essential job functions of an employment position in assessing disability discrimination and failure to accommodate issues, it is important that all employers maintain updated job descriptions so there will be a point of reference if any issues arise as to what the essential functions of a job position are for accommodation purposes. Moreover, just like employee handbooks, if you do not have job descriptions today, the beginning of the upcoming year is a good time to commence preparing them.
  3. Are your employee leave policies up to date?  It is important under both federal and state leave laws that leave policies are accurate and current. One of the most effective ways of meeting this requirement is having updated leave policies in an employee handbook, so use the beginning of next year to check that such policies are accurate and up to date. 
  4. When was the last time you conducted an audit of your payroll practices?  One of the chief concerns to examine here is ensuring that all your employees are properly classified as exempt versus non-exempt employees for purposes of their proper compensation under federal and state wage and hour laws. It is always a good idea for an employer to do a quick review of employment classifications each year in case changes need to be made based upon any modifications in employee job responsibilities. Also, as part of such an audit, make sure that you are paying your employees correctly. If eligible for overtime, are you calculating such payments right and using the appropriate rate of pay? And how about independent contractors? If you are using them, are you meeting the stringent requirements here in New Jersey for creating those relationships to withstand legal scrutiny? Failure to follow independent contract rules can lead to significant wage and hour problems.   
  5. Are you properly performing background checks on current and prospective employees?  Remember, there are strict requirements concerning how such background checks are conducted under not only the Fair Credit Reporting Act but also under relevant federal employment discrimination laws such as Title VII. Several years ago, the Equal Employment Opportunity Commission issued a detailed compliance guidance on how the results of a background check can be utilized in assessing a person’s suitability for employment, and New Jersey also passed its own restrictions, i.e. Ban the Box rules, so it is important that all background check policies meet these requirements. 

In sum, the upcoming new year provides a wonderful opportunity for employers to proactively evaluate internal policies and procedures to make 2023 a legally problem free year in your workplace. Take advantage of the opportunity so your business will not be singing the blues in 2023!

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