Hiring New Employees in New Jersey: Legal Guidelines for Employers

Develop a clear job description that accurately reflects the position's responsibilities, required qualifications, and essential functions. Ensure the description complies with New Jersey's anti-discrimination laws and does not contain language that could be interpreted as discriminatory based on protected characteristics.

Advertise the position through appropriate channels. New Jersey law prohibits employers from requesting salary history from applicants, so ensure job applications and interviews comply with this requirement. Also, be aware that New Jersey has 'ban-the-box' legislation that restricts when criminal history inquiries can be made during the hiring process.

Create an application form that complies with New Jersey law. Do not include questions about salary history, criminal background (at initial application stage), or other prohibited inquiries. Include an equal employment opportunity statement and ensure the form complies with the New Jersey Law Against Discrimination (NJLAD).

During interviews, avoid questions about protected characteristics (race, religion, age, etc.). New Jersey law prohibits discrimination based on additional categories beyond federal law, including civil union status, domestic partnership status, gender identity, and genetic information. Document the selection process to demonstrate objective decision-making.

New Jersey follows the 'Opportunity to Compete Act' which prohibits employers from inquiring about criminal history during initial employment application. Background checks can only be conducted after a conditional offer of employment has been made. Obtain written consent before conducting any background checks.

Create a form that complies with both the Fair Credit Reporting Act (FCRA) and New Jersey law. The form must be clear, conspicuous, and standalone (not buried in other documents). It must inform the candidate about the nature and scope of the background check and obtain their consent.

Draft an offer letter that includes position title, start date, compensation, benefits, and employment conditions. In New Jersey, be aware that the offer letter could potentially create contractual obligations, so include appropriate disclaimers about at-will employment if applicable.

If using a formal employment contract (rather than at-will employment), ensure it complies with New Jersey law. Include clear terms regarding duration, compensation, benefits, termination provisions, and any restrictive covenants. Be aware that New Jersey courts scrutinize restrictive covenants carefully.

Draft an NDA that protects your company's confidential information. In New Jersey, NDAs must be reasonable in scope, duration, and geographic limitation. The agreement should clearly define what constitutes confidential information and the employee's obligations regarding such information.

If using a non-compete, ensure it complies with New Jersey law, which requires such agreements to be reasonable in scope, duration, and geographic limitation. New Jersey courts will only enforce non-competes that protect legitimate business interests and do not impose undue hardship on the employee. Note that New Jersey has proposed legislation to limit non-competes, so check current law before implementing.

Federal law requires verification of employment eligibility for all new hires. Complete Form I-9 within three business days of the employee's first day of work. Examine original documents that establish identity and employment authorization. Store I-9 forms separately from personnel files.

Have the employee complete Section 1 on or before their first day of work. As the employer, complete Section 2 within 3 business days of the employee's start date after physically examining acceptable documents that verify identity and work authorization. Retain the form for the later of 3 years after hire date or 1 year after employment ends.

Federal and New Jersey state law require employers to withhold income taxes from employee wages. Have the employee complete the necessary forms to determine proper withholding amounts.

Have the employee complete the federal W-4 form to determine federal income tax withholding. Keep the completed form in your records (do not send to the IRS). If an employee fails to provide a W-4, withhold as if they are single with no adjustments.

Have the employee complete the New Jersey NJ-W4 form for state income tax withholding. New Jersey has specific withholding requirements that differ from federal requirements, so a separate state form is necessary.

Establish the employee in your payroll system. New Jersey requires employers to pay employees at least twice per month on regularly scheduled paydays. If using direct deposit, obtain proper authorization from the employee.

Create a form that authorizes the employer to deposit the employee's wages directly into their bank account. Include fields for the employee's bank information, account type, routing number, account number, and authorization signature. In New Jersey, employers cannot require direct deposit as a condition of employment unless required by federal law or as a condition for receiving a particular benefit.

New Jersey law requires employers to report all newly hired or rehired employees to the New Jersey New Hire Reporting Center within 20 days of hire. This reporting helps with child support enforcement.

Submit the required information to the New Jersey New Hire Reporting Center within 20 days of hire. Required information includes employee's name, address, SSN, and date of hire, as well as employer's name, address, and federal employer identification number (FEIN). This can be done online through the New Jersey New Hire Reporting Center website.

If offering benefits, provide enrollment information and forms to the new employee. New Jersey has specific requirements for certain benefits, such as temporary disability insurance and family leave insurance, which are mandatory state programs funded through payroll deductions.

Create forms for the employee to enroll in company-provided benefits such as health insurance, retirement plans, and other optional benefits. Include information about New Jersey's mandatory Temporary Disability Insurance (TDI) and Family Leave Insurance (FLI) programs, which provide partial wage replacement for employees who need time off for their own illness or to care for family members.

Obtain emergency contact information from the new employee to use in case of workplace emergencies or accidents.

Create a form that collects the names, relationships, phone numbers, and addresses of individuals to contact in case of an emergency involving the employee. Include space for any relevant medical information the employee wishes to share, such as allergies or medical conditions that emergency responders should know about.

New Jersey law requires employers to display various posters and notices in the workplace, including information about minimum wage, family leave, discrimination laws, unemployment compensation, workers' compensation, and workplace safety. Ensure all required posters are displayed in a prominent location accessible to all employees.

Create an employee handbook that outlines company policies, procedures, and expectations. In New Jersey, consider including policies on equal employment opportunity, anti-harassment, family leave (including New Jersey Family Leave Act requirements), paid sick leave (required under New Jersey law), and other state-specific requirements. Have the employee acknowledge receipt of the handbook.

If not already registered, employers must register with the New Jersey Department of Labor and Workforce Development for unemployment insurance purposes. Employers in New Jersey are subject to unemployment insurance taxes.

New Jersey law requires employers to maintain workers' compensation insurance coverage. If not already obtained, secure coverage through a private insurance carrier, the state insurance fund, or self-insurance (if qualified).

Provide orientation for the new employee, covering company policies, safety procedures, and job-specific training. Document the orientation to demonstrate compliance with training requirements.

Ensure compliance with New Jersey wage and hour laws, including minimum wage ($14.13/hour as of 2023, with annual increases), overtime requirements, meal and rest breaks, and recordkeeping requirements. New Jersey has more stringent requirements than federal law in many areas.

New Jersey requires employers to provide paid sick leave to employees (1 hour for every 30 hours worked, up to 40 hours per year). Ensure your policies comply with the New Jersey Earned Sick Leave Law and that proper records are maintained.