New Jersey Governor Phil Murphy took office earlier this year with an ambitious agenda regarding NJ employment laws. From a minimum wage increase to paid sick leave to companies’ drug and alcohol policies, Murphy’s agenda will impact the way you run your business, one way or another.
Minimum wage increase
New Jersey’s minimum wage currently stands at $8.60 per hour. During his campaign, Murphy vowed to boost it to $15 per hour. While many legislative leaders back this change, there’s still some uncertainty regarding its scope — just teenagers, or all minimum wage workers? It’s possible we’ll see a gradual implementation rather than an abrupt rise across the board. When this becomes effective, employers in minimum wage-heavy industries — fast food, retail, maintenance and personal care, to name just a few — will need to dramatically adjust their labor cost projections.
Legalization of marijuana
Nine states have already legalized recreational marijuana, with New Jersey poised to follow suit. Employers are not obligated to accommodate its use, and employees who test positive are still subject to termination based on your company policy. However, this may change if New Jersey passes an accommodation requirement for medical marijuana usage. Companies will have to review and update current drug and alcohol policies to follow the new law.
Mandated coverage of medication-assisted opioid addiction treatment
Drug addiction is covered under the New Jersey Law Against Discrimination (NJLAD). And employers are required to provide disabled employees with reasonable accommodations. If an eligible employee requests time off for drug treatment, you’ll be required to grant them leave for treatment, regardless of how business will be affected.
Statewide paid sick leave
The governor’s statewide paid sick leave ordinance, which becomes effective in late October 2018, requires employers to grant workers one hour of paid sick leave for every 30 hours worked, with an annual cap of 40 hours. Workers are entitled to time off to care for their own or a family member’s physical or mental illness or injury; when their child’s school is closed because of a public health emergency; or to address domestic or sexual violence. Employers are now in the process of modifying their leave policies to ensure compliance. Smaller companies, unfamiliar with sick leave laws, are more likely to encounter challenges along the way.
With major policy shifts like these poised to take place, it’s time to take a top-down look at how they could affect your HR policies, labor cost projections and cross-training efforts. And don’t forget compliance — failure to meet new requirements could result in severe financial penalties as well as a reputational black eye. Embrace the challenge and you just might uncover opportunities to strengthen your organization and become more competitive.