MEDIA DATA SERVICES, INC. 265 Route 46 West, Totowa, New Jersey, 07512 Phone: 973. 785. 3100 Fax: 973. 785. 2453 Payroll Experts” “The NEW JERSEY ENACTS LAW REQUIRING EMPLOYERS TO PROVIDE PAID SICK (PSL) On May 2, 2018, NJ Governor Phil Murphy signed a bill requiring employers of any size to provide paid sick leave (PSL). The law will take effect October 29, 2018. Employees will accrue one hour of paid sick for every 30 hours worked, up to 40 hours in a year. Employees will be eligible to use accrued paid sick leave on the 120th calendar day after employment begins, unless an employer agrees to an earlier date. PSL must be paid out at the employee’s regular rate. As an alternative to the accrual, employers may opt to provide employees with the full amount of paid sick for a benefit year on the first day of the benefit year. A benefit year is defined as any 12 consecutive month period pre-defined by the employer. Employers are not required to allow employees to use more than 40 hours of PSL in a benefit year. If an employer has an existing paid time off (PTO) plan, it may satisfy the law’s PSL requirement. However, employers may need to change policies in order for the PTO to be in compliance with the new law. Whether employers comply with the new law through a separate PSL policy or a PTO plan, employees are entitled to carry over at least 40 hours per year. As an alternative to the carryover, an employer may offer a payout for the full amount of unused time or 50%. However, the employee can decline this offer and the full balance of any unused time must be carried over. There are still questions involving certain aspects of the implementation of the law. For instance, there are several unanswered questions as it concerns the carryover policy. Law makers are meeting in early November in the hopes of clarifying such questions. The bill explicitly excludes employees in the construction industry employed under a collective bargaining agreement, per diem healthcare employees, and public employees who already have sick leave benefits. All other employees, whether part time or full time are covered under the PSL law. There is no small business exclusion.
MEDIA DATA SERVICES, INC. 265 Route 46 West, Totowa, New Jersey, 07512 Phone: 973. 785. 3100 Fax: 973. 785. 2453 “The Payroll Experts” NEW JERSEY ENACTS LAW REQUIRING EMPLOYERS TO PROVIDE PAID SICK (PSL) On May 2, 2018, NJ Governor Phil Murphy signed a bill requiring employers of any size to provide paid sick leave (PSL). The law will take effect October 29, 2018. Employees will accrue one hour of paid sick for every 30 hours worked, up to 40 hours in a year. Employees will be eligible to use accrued paid sick leave on the 120th calendar day after employment begins, unless an employer agrees to an earlier date. PSL must be paid out at the employee’s regular rate. As an alternative to the accrual, employers may opt to provide employees with the full amount of paid sick for a benefit year on the first day of the benefit year. A benefit year is defined as any 12 consecutive month period pre-defined by the employer. Employers are not required to allow employees to use more than 40 hours of PSL in a benefit year. If an employer has an existing paid time off (PTO) plan, it may satisfy the law’s PSL requirement. However, employers may need to change policies in order for the PTO to be in compliance with the new law. Whether employers comply with the new law through a separate PSL policy or a PTO plan, employees are entitled to carry over at least 40 hours per year. As an alternative to the carryover, an employer may offer a payout for the full amount of unused time or 50%. However, the employee can decline this offer and the full balance of any unused time must be carried over. There are still questions involving certain aspects of the implementation of the law. For instance, there are several unanswered questions as it concerns the carryover policy. Law makers are meeting in early November in the hopes of clarifying such questions. The bill explicitly excludes employees in the construction industry employed under a collective bargaining agreement, per diem healthcare employees, and public employees who already have sick leave benefits. All other employees, whether part time or full time are covered under the PSL law. There is no small business exclusion.
NJ_Paid_Sick_Leave_effective_10292018_Updated.33665648.docx