Employer of Record · New Jersey

Employer of Record in New Jersey.
WARN Act Ready.

New Jersey's 2023 WARN Act amendments turned a notice requirement into something much bigger — mandatory severance pay for mass layoffs. Combined with the strongest Temporary Disability Insurance program in the country, Family Leave Insurance, and mandatory paid sick leave, New Jersey layers more employer obligations than almost any state outside California. WorkGenius becomes your legal employer and handles every New Jersey requirement from day one.

$15.49/hr
State minimum wage
12 weeks
Family Leave Insurance
90 days
NJ WARN Act notice

New Jersey by the Numbers

Minimum wage
$15.49/hr
As of Jan 1, 2025; indexed annually to the Consumer Price Index
Family Leave Insurance
12 weeks
85% of average weekly wage; employee-funded via payroll deductions
NJ WARN Act
90 days + severance
Unique mandatory severance of 1 week per year of service added in 2023
Paid sick leave
40 hrs/year
For all employers regardless of size; accrues at 1 hr per 30 hrs worked
Temporary Disability Insurance
Mandatory
Both employer and employee contributions required; covers non-work injuries and illness
Final paycheck
Next payday
Due on the next regular payday following termination
The Defining Law

NJ WARN Act (2023): Notice + Mandatory Severance

New Jersey's WARN Act was significantly strengthened by amendments that took effect April 10, 2023. NJ is now the only state in the US that mandates severance pay — not just advance notice — when a mass layoff triggers the law. Employers must provide 90 days' notice AND pay 1 week of severance for each year of service to every affected employee. This catches out-of-state companies planning workforce reductions completely off guard.

Get AB5-Compliant Today
The ABC Test
  • Applies to employers with 50 or more employees in New Jersey (reduced from 100)
  • 90 days' advance notice required for mass layoffs of 50 or more employees over 30 days
  • Mandatory severance: 1 week of pay per year of service for each affected employee
  • Employees cannot waive severance rights without court approval or the NJ Department of Labor
  • Applies to New Jersey-based workers regardless of where your company is headquartered
  • WorkGenius monitors workforce size and advises on NJ WARN obligations before any restructuring
New Jersey Coverage

What WorkGenius Handles for New Jersey

New Jersey stacks TDI, FLI, paid sick leave, mandatory severance, and a 90-day WARN Act into one of the most complex compliance environments on the East Coast.

NJ WARN Act & Severance

Workforce size monitored continuously. WARN obligations identified before restructuring. Severance calculations — 1 week per year of service — prepared accurately for every affected New Jersey employee.

New Jersey Payroll

State income tax withholding, NJ TDI contributions (employer and employee), FLI deductions, paid sick leave accrual, and UI/WF/SWF surcharge — all calculated and remitted on every pay cycle.

TDI & Family Leave Insurance

New Jersey's Temporary Disability Insurance and Family Leave Insurance are both mandatory. WorkGenius calculates and remits all employee and employer contributions, tracks leave eligibility, and manages claims coordination.

NJ Paid Sick Leave

Every New Jersey employee accrues 1 hour of paid sick leave per 30 hours worked, up to 40 hours per year. WorkGenius tracks accrual, usage, carryover, and year-end payout requirements.

Benefits Administration

ACA-compliant health coverage, 401(k), disability, and any NJ-specific benefit requirements — all enrolled and administered. TDI and FLI coverage coordinated alongside voluntary benefits.

Termination & Final Pay

Final pay on the next regular payday, COBRA administration, NJ WARN severance calculations, and compliant separation documentation reflecting all New Jersey-specific obligations.

New Jersey Compliance Dashboard
3 workers · All compliant
Live
TDI & FLI Contribution Check
Passed
TDI employer contribution calculated
FLI employee deduction applied
Workforce size monitored for WARN Act
This Week's Payroll
$15.49
Base/hr
$23.24
OT rate (1.5×)
Auto
Calculated
Weekly invoice sent
Every Friday · All-in rate
Sent
Technology-Powered

How WorkGenius Handles New Jersey EOR

Most EOR providers use manual checklists. WorkGenius runs New Jersey's TDI/FLI contributions, WARN Act monitoring, and Earned Sick Leave tracking directly in the platform — automatically, on every payroll cycle.

  • TDI & Family Leave Insurance
    TDI employer and employee contributions calculated and remitted automatically. FLI deductions tracked and filed on every pay cycle. Zero risk of missed contributions.
  • New Jersey Payroll, Automatically
    State income tax withholding, UI/WF/SWF surcharges, Earned Sick Leave accrual at 1 hr per 30 hrs worked — all calculated and remitted on every pay cycle without you lifting a finger.
  • WARN Act Monitoring
    Workforce size tracked continuously. When a restructuring approaches the 50-employee WARN threshold, we flag the obligation before the 90-day clock starts — protecting you from mandatory severance exposure.
  • One Weekly Invoice
    A single, transparent weekly invoice covering payroll, taxes, benefits, and compliance. No surprises, no hidden fees.

Other Key New Jersey Compliance Areas

Beyond the NJ WARN Act, New Jersey layers several additional requirements on top of federal law.

Temporary Disability Insurance (TDI)

Employer + employee

New Jersey requires both employer and employee contributions to TDI, which provides wage replacement for non-work-related injury or illness. As of 2024, the employee rate is 0.09% on the first $161,400 of wages. WorkGenius calculates and remits all TDI contributions on every payroll run.

NJ Family Leave Insurance (FLI)

85% of AWW

New Jersey's FLI provides up to 12 weeks of partially paid leave (85% of average weekly wage, up to a weekly cap) for bonding with a new child or caring for a seriously ill family member. It is entirely employee-funded. WorkGenius calculates and remits FLI contributions automatically.

NJ Law Against Discrimination

All employer sizes

The New Jersey Law Against Discrimination (NJLAD) is broader than federal anti-discrimination law. It applies to all employers regardless of size and adds protected classes beyond federal law — including affectional or sexual orientation, gender identity, and domestic partnership status. WorkGenius employment agreements and practices are NJLAD-compliant from day one.

NJ Earned Sick Leave Act

All employer sizes

Every New Jersey employer must provide 40 hours of paid sick leave per year, regardless of company size. Leave accrues at 1 hour per 30 hours worked. Unused leave carries over year-to-year (up to 40 hours). WorkGenius tracks accrual, usage, and carryover and generates required annual notices.

Simple Process

How It Works in New Jersey

From first conversation to fully compliant employment — typically within days.

1

Tell Us What You Need

Workers, roles, locations, and start dates. We tailor the setup to your needs.

2

We Assess & Classify

Our AI runs every worker through California's ABC test. We prepare compliant contracts and payroll setup.

3

Workers Are Employed

Onboarded with California-compliant contracts, benefits enrolled, payroll running from day one.

4

We Handle Ongoing

Payroll runs with daily OT. Taxes filed. Compliance monitored. One weekly invoice.

New Jersey EOR: Common Questions

Does the NJ WARN Act really require severance pay — not just notice?

Yes. Since the 2023 amendments, New Jersey is the only state in the US that mandates severance pay as part of its WARN Act. Employers must provide 90 days' advance notice AND pay 1 week of severance for each year of service to every employee affected by a qualifying mass layoff. Employees cannot voluntarily waive this severance without court approval or NJ Department of Labor oversight. WorkGenius monitors workforce size continuously and advises on WARN obligations before any restructuring.

What is New Jersey's Temporary Disability Insurance and who pays for it?

New Jersey's TDI provides wage replacement for employees who cannot work due to non-work-related illness or injury (including pregnancy). It is funded by both employer and employee contributions — the employee rate is 0.09% of wages up to the taxable wage base, and employers contribute a rate set annually by the state. WorkGenius calculates and remits both sides of the TDI contribution on every payroll run.

How does NJ Family Leave Insurance differ from FMLA?

Federal FMLA provides up to 12 weeks of unpaid, job-protected leave and applies only to employers with 50+ employees. NJ Family Leave Insurance provides up to 12 weeks of partially paid leave (at 85% of average weekly wage) and is funded entirely through employee payroll deductions — the employer does not contribute directly. NJ FLI applies to employers with 30 or more employees. WorkGenius calculates and remits FLI contributions on every pay cycle.

Does NJ require paid sick leave for small employers?

Yes — New Jersey's Earned Sick Leave Act applies to all employers, regardless of size. Every employee (full-time, part-time, and temporary) accrues 1 hour of paid sick leave for every 30 hours worked, up to 40 hours per year. Leave carries over year-to-year. WorkGenius tracks accrual and usage for every New Jersey employee and provides the required annual written notice.

Are non-compete agreements enforceable in New Jersey?

Yes, but New Jersey courts apply a balancing test — they consider whether the non-compete is necessary to protect a legitimate business interest and is reasonable in scope, duration, and geography. Unlike Florida, courts will not automatically enforce them; unlike California, they will not automatically void them. WorkGenius drafts non-compete provisions tailored to what New Jersey courts are likely to uphold, balancing protection with enforceability.

What are the final pay rules in New Jersey?

New Jersey requires that a terminated employee's final paycheck be paid on or before the next regular payday. This is less immediate than California's same-day requirement but still requires active management. If an employee has accrued, unused paid sick leave, the employer does not need to pay it out unless a company policy requires it. WorkGenius tracks termination dates, final pay timing, and any leave payout obligations to ensure full compliance.

Employer of Record

Ready to Employ in New Jersey Compliantly?

WorkGenius handles AB5 classification, California payroll, benefits, and every other compliance requirement so you don't have to. Get started today.

No commitment required. Free consultation included.