PEO Services for New Jersey

• Minimum Wage: New Jersey's minimum wage is $15.49 per hour (2024). This rate applies to most employees, with exceptions for certain sectors like tipped workers. Some localities may have higher rates.
• Overtime: Overtime is required for non-exempt employees who work over 40 hours per week. New Jersey does not have daily overtime rules, so overtime only applies after 40 hours in a workweek.
• Sick Leave: New Jersey law mandates that employees accrue 1 hour of paid sick leave for every 30 hours worked. Employers must allow up to 40 hours of sick leave per year for full-time employees. This applies to businesses of all sizes.
• Meal and Rest Breaks: New Jersey law does not mandate meal breaks for employees working less than 8 hours. However, employees working more than 6 consecutive hours are entitled to a 30-minute unpaid meal break. Rest breaks are not specifically required by law but are recommended for workers to have at least a 10-minute break for every 4 hours worked.

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• Payroll Schedule: New Jersey employers have flexibility in determining their payroll schedule (e.g., weekly, bi-weekly, or semi-monthly). However, they must ensure employees are paid in a timely manner, adhering to the terms of the employment agreement.
• Tax Compliance:

‍Unemployment Insurance: New Jersey has a state unemployment tax with rates ranging from 0.60% to 6.40% for experienced employers and 3.2825% for new employers.

State Income Tax: New Jersey requires state income tax withholding based on the employee's income and filing status. The tax rates range from 1.4% to 10.75%.

Other Payroll Taxes: Employers must also contribute to Temporary Disability Insurance (TDI), Family Leave Insurance (FLI), and the Workforce Development Partnership Fund.

PEOs in New Jersey can offer small businesses access to a range of employee benefits that are often more affordable due to the PEO's collective purchasing power. These benefits may include:

• Health Insurance: PEOs typically provide access to a variety of health insurance options, including HMO, PPO, and other plans, leveraging their pooled volume for better rates.
• Retirement Plans: A PEO can facilitate access to 401(k) plans and other retirement options, offering competitive match programs and investment options for employees.
• Risk Management: PEOs help small businesses reduce risk by providing expertise in workers’ compensation, unemployment insurance, and compliance management.

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Several state-specific requirements are enforced to ensure workplace safety and proper risk management:

• Workplace Safety: Employers must comply with New Jersey’s workplace safety rules, which align with OSHA regulations.
• Workers’ Compensation: New Jersey requires employers to carry workers' compensation insurance. PEOs typically manage this for clients, reducing the risk of non-compliance.
• Enforcement Agencies:

New Jersey Department of Labor and Workforce Development (NJDOL) enforces labor laws.

New Jersey Division of Taxation ensures compliance with payroll and tax regulations.

Occupational Safety and Health Administration (OSHA) enforces safety regulations.

• Overlapping Laws: If there are overlapping laws (e.g., federal vs. state), the most employee-friendly law applies. For instance, if federal law provides more generous benefits than state law, the federal standard prevails.