On April 12, 2018, the New Jersey Legislature passed a mandatory Paid Sick Leave law.  The law, which goes into on October 29, 2018, applies to all private employers who employ individuals in the State of New Jersey, among others.

Under the law, sick leave begins to accrue on the effective date of the law or the employee’s hiring date, whichever is later.  Employees may accrue one hour of leave for every 30 hours worked.  Employers are not required to permit employees to accrue more than 40 leave hours in a benefit year, which is a 12-month consecutive period during which an employee may accrue and use earned sick leave.  Accrued, unused sick leave must carry-over to the next year (however, an employee cannot accrue and carry-over more than 40 hours in a benefit year), unless the employer offers and the employee chooses to accept compensation for accrued, unused leave at the end of the benefit year.  As an alternative, the employer may choose to “frontload” employees with one full year of 40 hours of paid sick leave on the first day of the benefit year.  If employers choose to “frontload,” they must pay employees compensation for said accrued, unused leave at the end of the benefit year or permit employees to carry over accrued, unused leave to the next benefit year.

For more details on this law, please see https://custodelaw.com/leave-of-absence/new-jersey-legislature-passes-statewide-paid-sick-leave-law/.