Compliance Watch:
What are my overtime rights in New Jersey?

May 23rd 2024

Overtime rules exist to prevent employees from being taken advantage of and to maintain fair working conditions. In New Jersey, both state and federal laws regulate overtime, usually aligning with each other. It is crucial to fully understand your rights to make sure you get paid fairly for any extra hours you work.

This article dives into the legal framework behind overtime regulations and common practices in New Jersey, by answering common questions on the topic.

This Article Covers

Understanding Overtime in New Jersey
Common Questions About Overtime in New Jersey
Legal Working Hours in New Jersey
Overtime Eligibility in New Jersey
Overtime Payment Calculations in New Jersey
Receiving Overtime Payment in New Jersey
Violations of Overtime Law in New Jersey

Understanding Overtime in New Jersey

Is overtime pay mandatory in New Jersey?

In New Jersey, overtime is governed by both federal and state laws and it is mandatory for all employers covered by either or both of these laws to pay their workers overtime for any overtime hours worked, unless the employee is exempt. There are only a few exemptions so the majority of employers in New Jersey must pay overtime to their workers.

More information on exemptions and exceptions from overtime can be found in this New Jersey Overtime Laws article.

When do I qualify for overtime pay in New Jersey?

In New Jersey, both employers and employees must comply with state and federal overtime provisions outlined in the FLSA and the NJWHL. According to both of these laws, overtime compensation begins for non-exempt employees after they surpass 40 hours of work in a single work week. There are no daily overtime provisions.

The 40 hours must be completed in one workweek, hours cannot be added up over two or more workweeks. A workweek is defined as a period of seven consecutive 24-hour periods and does not have to align with the calendar week.

In New Jersey, working on weekends, nights, or holidays does not qualify an employee to receive overtime pay, unless overtime hours are worked during those times. However, employers are entitled to implement their own overtime policies, giving them flexibility in how they compensate employees for extra work.

How much is overtime pay in New Jersey?

In New Jersey, if overtime hours are worked, employees should be paid no less than one and a half times their regular hourly wage for each extra hour. For instance, if an employee’s standard hourly wage is $23, their overtime rate would be $34.50 per hour.

With New Jersey’s minimum wage raised to $15.13 per hour in 2024, the minimum overtime wage is now $22.70 per hour. Note that this state minimum wage is higher than the federal minimum wage and employers must adhere to the state law. There are some exceptions to this minimum wage for certain seasonal or agricultural workers, minors and tipped employees.

Employers are not required by law to pay double time in New Jersey, but employers can implement such policies if they choose.

Which laws govern overtime in New Jersey?

In New Jersey the New Jersey Wage and Hour Laws (NJWHL) and the federal Fair Labor Standards Act (FLSA) govern overtime. The state and federal overtime laws tend to align, however, when they differ, the law that is more favorable to the worker will be applicable.

Under both the NJWHL and the FLSA:

  • Employees are entitled to overtime pay for all hours worked over 40 hours in a single workweek, unless they are exempt.
  • Overtime pay must equal one and a half times the regular hourly pay rate.
  • Employees are not required to receive overtime pay for work on weekends, nights, or holidays, unless overtime hours are worked.
  • There are no restrictions on the number of working hours for most employees.
  • Overtime operates on a workweek basis, consisting of seven consecutive 24-hour periods. A workweek does not have to align with the traditional calendar week and can start on any day.
  • Working hours cannot be averaged over two or more workweeks.

Further information about overtime in New Jersey can be found in New Jersey Overtime Laws.

Common Questions About Overtime in New Jersey

Do employers have to pay overtime in New Jersey?

In New Jersey, employers covered by either state or federal overtime regulations are required by law to compensate non-exempt employees for all overtime hours worked. Businesses fall under the FLSA if their annual sales surpass $500,000 or if they participate in interstate commerce activities.

Though some small businesses might presume they are exempt, the definition of ‘interstate commerce’ is very broad, including activities like phone calls, mail services, or handling goods destined for other states. As a result, the FLSA applies to most employers, making exemptions from overtime rules uncommon.

Can an employee refuse to work overtime in New Jersey?

In New Jersey, neither state nor federal laws impose restrictions on the number of hours an employee can work per day or week. Consequently, employees normally have to comply with employer requests for overtime. Refusal to work extra hours could lead to disciplinary action, including termination.

There are exceptions to this general rule. Employees cannot be forced to work overtime if this would violate their employment contract or collective bargaining agreement. Additionally, certain industries, like transportation, are often subject to strict regulations surrounding working hours to uphold health and safety standards. Employers must abide by these regulations.

Can I take comp time instead of overtime pay in New Jersey?

Compensatory time, commonly known as comp time, allows employees to receive additional time off instead of monetary compensation for overtime work. Employers in the private sector cannot give their employees paid time off instead of overtime payment. However, this is an option for state and local government employees in New Jersey. Such employees often have the option to choose between comp time or overtime pay, but employers cannot force an employee to take comp time against their will.

If an employer grants comp time, it must be of equal value to the overtime pay rate, meaning that employees must receive one hour and a half of paid time off for each hour of overtime worked.

Can I get overtime pay in New Jersey without employer approval?

New Jersey follows federal overtime rules set out by the FLSA which state employees do not need to gain approval from their employer to work overtime to receive payment for that extra work. Employees must be appropriately compensated for all work performed which the employer is aware of, or should reasonably have known about.

However, employees are not allowed to hide overtime work from their employers deliberately. While prior approval may not be a requirement, employees can still face disciplinary actions for working overtime without obtaining permission beforehand.

Does New Jersey have double-time pay?

No, employers in New Jersey are not obligated by law to pay double-time to their employees for work done during specific hours or days, like weekends. Although there are no legal requirements, employers have the freedom to establish double-time policies if they wish.

What is working ‘off-the-clock’ in New Jersey?

Employees must be compensated for all the work they do. ‘Off-the-clock work’ refers to when employees perform job duties outside of their regular working hours without receiving compensation for it. Although the employer is aware of this extra work, it is not accounted for in the employee’s official workweek hours, often to avoid paying overtime compensation.

Being asked to perform work off-the-clock work is illegal in New Jersey as it violates federal and state wage and hour laws outlined in the FLSA and the NJWHL. Below are various types of tasks which are often performed off-the-clock:

  • Working during allocated meal or rest breaks.
  • Pre-shift tasks such as cleaning a work area.
  • Post-shift tasks such as closing a job site.
  • Correcting mistakes or redoing projects outside of work hours.

What are common ways employers avoid paying overtime in New Jersey?

Some employers avoid properly compensating their employees for work which should count as overtime by using various strategies and legal loopholes, including:

  • Averaging hours worked: According to the NJWHL, averaging hours over multiple workweeks is illegal. Overtime must be calculated based on each individual workweek. However, despite this regulation, some employers continue to engage in this practice to avoid paying overtime. This particularly affects employees who are paid on a bi-weekly or bi-monthly basis. For instance, if an employee works 50 hours in one week, the employer might schedule them for only 30 hours the following week. Although the employee is entitled to ten hours of overtime pay from the first week, averaging hours can make it seem like they worked two standard 40-hour weeks. By doing this, the employer evades their obligation to pay overtime, exploiting the employee in the process.
  • Requiring employees to perform ‘off-the-clock’ work: Employers often require employees to complete tasks, such as prep work or answering phone calls, outside of regular work hours without offering compensation. This practice is illegal in New Jersey as it violates state and federal wage and hour laws. Employers are required to document all tasks performed by employees and to provide proper compensation.
  • Misclassifying workers as salaried employees: In New Jersey, salaried employees are exempt from overtime pay if they earn more than $684 per week or $35,568 per year. This will increase to $844 per week ($43,888 yearly) on July 1, 2024 and to $1,128 per week ($58,656 yearly) on January 1, 2025. Further increments will occur every three years, starting on July 1, 2027. To avoid paying overtime rates, employers might incorrectly classify employees earning below this threshold as salaried workers, a practice which is illegal and violates state and federal regulations.
  • Providing time off: Employers may provide employees with time off to prevent the need for them to work overtime hours. For example, employees could be granted the option to take Friday off if they completed a double shift on Tuesday, ensuring that their total weekly hours remain within the 40-hour threshold for standard pay.
  • Not paying overtime pay to commissioned or piece rate employees: Many employees disregard the fact that commissioned and piece rate employees are also be entitled to receive overtime pay for working over 40 hours in a workweek. However, employers often pay the same amount for work done inside the 40 hours as well as work over the 40 hours.

Can you work seven days in a row in New Jersey?

In New Jersey, there is no cap on the number of hours most employees can legally work, meaning they could work seven days in a row without violating the law.

However, New Jersey has strict laws in place to protect the rights and safety of minors. No employee under the age of 18 is allowed to work more than six consecutive days in any week. Additionally, employees working in regulated industries may be required to adhere to certain rules regarding working hours, or they might have limitations outlined in their contract or collective bargaining agreement regarding consecutive workdays.

If an employee has to work seven days in a row, it is important they keep track of their hours to ensure they get paid extra for any hours over 40 in one week, as long as they are eligible for overtime.

How many ten-hour days can you work in a row in New Jersey?

In New Jersey, there are no state or federal laws limiting the number of hours an employee can work. Therefore, an employee could work any number of ten-hour days. However, New Jersey has strict regulations for minors which prevents them from working ten hours days: no employee under the age of 18 is allowed to work more than six consecutive days in any week or more than eight hours in a day.

Some states have implemented unique overtime rules for employees on alternative work schedules consisting of four ten-hour shifts in a workweek. In these cases, employees are eligible for overtime pay for all hours worked over ten hours on those days.

New Jersey has not implemented this specific overtime rule. Instead, employees in New Jersey are eligible for overtime pay for all hours worked over 40 in a workweek, unless the employee is exempt from overtime regulations.

What are full-time hours in New Jersey?

In New Jersey, the definition of full-time employment, as stated in the federal Affordable Care Act (ACA), is used to decide the number of hours an employee must work to be classified as a full-time worker. According to the ACA, full-time employment means working 30 hours or more per week, or at least 130 hours per month.

How many hours straight can you legally work in New Jersey?

In New Jersey, as there are very limited rules regarding working hours; most employees must work the number of hours required by their employer. Provided an employee is at least 18 years old, they could technically work up to 24 hours per day. However, there are some regulations for certain workers, impacting the number of hours straight they can work:

  • Employees under 18 cannot work for more than eight hours a day, 40 hours a week or more than six consecutive days in a week.
  • Employees in regulated industries, such as transportation, may have rules regarding the number of consecutive hours they can work.
  • Some employees have terms in their contracts or collective bargaining agreements which limit the number of hours they are permitted to work.

Is overtime after eight hours or 40 hours in New Jersey?

New Jersey is not a daily overtime state, meaning that overtime does not come into play based on a daily threshold. Instead, overtime is based on a weekly threshold outlined by the FLSA and the NJWHL, as starting if an employee works beyond 40 hours in a single workweek, unless they are exempt from overtime regulations.

Does working on the weekend qualify for overtime pay in New Jersey?

In New Jersey, simply working on the weekend does not automatically qualify an employee for overtime pay. Neither state nor federal overtime regulations have special provisions for weekend work. Similarly, there are no specific rules for holidays or night shifts; overtime rules remain consistent regardless of the day of the week.

If an employee has already completed 40 hours of work before the weekend begins, any additional hours worked during the weekend will be considered overtime if the weekend falls within the same workweek.

Employers have the flexibility to start the workweek on any day, so it is crucial for employees to know their exact schedule to ensure accurate calculation of overtime earnings.

How many hours-off between shifts is required in New Jersey?

There are no requirements set out in federal or New Jersey laws stating that employees should receive a specific amount of time off between consecutive shifts.

However, certain regulated industries impose limitations on daily working hours or require a designated period of rest between shifts. Workers covered by union agreements may also have provisions in their collective bargaining agreements that dictate time off between shifts.

Furthermore, New Jersey’s employment laws for minors outline specific requirements which employers must follow. Employees under 18 years old cannot:

  • Work for more than eight hours per day.
  • Work for more than 40 hours a week.
  • Work more than six consecutive days in a week.

What does ‘hours worked’ include in New Jersey?

‘Hours worked’ encompasses all the time an employee must be at their workplace or on duty. In specific circumstances, activities like commuting, meal breaks, or rest breaks might be considered part of these hours worked. Both federal and state laws require employers to compensate their employees for all hours worked.

  • Meal breaks: Employers in New Jersey are not legally required to provide meal breaks, although most employers do as it ensures a productive workforce. If meal breaks are provided, federal laws must be adhered to. Employers do not have to pay an employee for a typical 30-minute break so long as the employee is relieved of all duties. If the employee is required to work during this time, it must be included in the total hours worked. In addition, under state rules, those under 18 must be given at least a 30-minute meal break for every five hours worked.
  • Rest breaks: Employers are also not legally required to give employees rest periods in New Jersey, although, short breaks of 5 to 20 minutes are typically provided. If short rest breaks are awarded, the FLSA states that they should be classed as work time and be paid.
  • Travel time: In New Jersey, travel time for a normal commute is not normally considered as part of an employee’s hours worked and therefore payment is not received for this time. However, under the FLSA, travel time is included if an employee must travel during regular working hours, work during travel time, travel on an assignment away from the official workplace, or travel on an overnight assignment away from the official workplace during hours on non-workdays that correspond to the regular working hours.

What is the most hours a salaried employee can work in New Jersey? 

In New Jersey, neither state nor federal laws limit the number of hours salaried employees can work. Typically, salaried employees do not have a set number of hours but are expected to finish all assigned tasks as directed in their employment contract.

Regarding overtime, non-exempt salaried employees are entitled to receive overtime pay for any hours worked beyond 40 in a workweek. It is recommended for employees to maintain accurate records of their work hours. If, upon calculation, their earnings fall below the minimum wage per hour, they may be able to file a wage claim.

What is the maximum number of hours an hourly employee can work in New Jersey?

In New Jersey, hourly employees over the age of 18 can work any number of hours, so long as they are paid the overtime rate for each hour over 40 worked in a workweek if eligible.

However, hourly employees working in regulated industries or covered by collective bargaining agreements may be subject to daily or weekly working hour limits.

Additionally, there are specific rules in place for minors in New Jersey. Those under 18 years old cannot work for more than eight hours a day, 40 hours a week or for more than six consecutive days in a week. These regulations restrict the potential number of hours a minor can work.

Overtime Eligibility in New Jersey

Who is eligible for overtime pay in New Jersey?

In New Jersey, employees are categorized as either exempt or non-exempt under the federal FLSA. Non-exempt employees, often paid hourly and commonly found in roles like manual labor or customer service, are eligible for overtime pay if they work more than 40 hours in a single workweek.

On the other hand, exempt employees in New Jersey are not entitled to overtime pay, regardless of the number of hours they work in a week.

Who is exempt from overtime pay in New Jersey?

In New Jersey, not every employee is eligible for overtime pay. All the exemptions detailed in the federal FLSA also apply under New Jersey law.

According to federal regulations, an employee might be exempt from overtime rules if they occupy an executive, administrative, or professional position. However, merely having a particular job title does not automatically exempt someone from overtime. Employees must meet criteria, which are assessed through three tests:

  1. The salary basis test: Exempt employees must receive a fixed salary regardless of their work hours or tasks completed. This means they are considered salaried employees rather than being paid hourly.
  2. The salary test: Exempt employees must earn a salary that meets a minimum standard. In New Jersey, the threshold for exemption in 2024 is $684 per week or $35,568 annually. This will increase to $844 per week ($43,888 yearly) on July 1, 2024 and to $1,128 per week ($58,656 yearly) on January 1, 2025. Further increases will occur every three years, starting on July 1, 2027.
  3. The duties test: Employees’ primary duties must involve administrative, professional, or executive tasks, requiring discretion and independent judgment.

Types of jobs which are exempt from overtime at the federal level include:

  • Airline employees
  • Commissioned sales employees
  • Computer professionals
  • Drivers
  • Executives and Managers
  • Learned professionals, such as lawyers
  • Live-in domestic employees
  • Farmworkers employed on small farms
  • Federal criminal investigators
  • Outside salespeople
  • Railroad employees

A full list of exemptions can be found on the official US Department of Labor website.

Can salaried employees get overtime pay in New Jersey?

Yes, salaried employees can be eligible for overtime in New Jersey as long as they don’t fall into the exempt from overtime category, which is common for salaried employees in white collar jobs. The criteria for a salary employee to be exempt from overtime are as follows:

  • An employee must earn a minimum salary of $684 per week or $35,568 per year. This will increase to $844 per week ($43,888 yearly) on July 1, 2024 and to $1,128 per week ($58,656 yearly) on January 1, 2025. Further increases will occur every three years, starting on July 1, 2027.
  • An employee must have a professional, administrative, or executive position, completing duties which require independent judgment and discretion.

If an individual on a salary does not meet all of these requirements, then they will be classed as non-exempt, meaning that they will be eligible to receive overtime payment.

Overtime Payment Calculations in New Jersey

What is my regular rate of pay in New Jersey?

The regular rate of pay refers to the compensation an employee receives for each hour of work. The regular rate of pay cannot be lower than the minimum wage in New Jersey which is $15.13 per hour for most employees in 2024. The total amount of earnings should include all types of compensation including commission and bonuses.

For those employees who receive compensation on an hourly rate, this will be their regular rate of pay. A regular rate of pay can also be determined for those on a salary, piece-rate or commission basis:

Salaried employees:

  • First, calculate the annual salary by multiplying the monthly salary by 12.
  • Then divide the annual salary by 52 (the total number of weeks in a year) to find the weekly salary.
  • Lastly, to calculate the regular hourly rate, divide the weekly salary by the maximum number of standard hours worked in a week (40 hours).

Piecework or commission employees:

  • Divide the amount earned in a workweek by the number of hours worked.
  • For group work, first calculate the group rate by dividing the total number of pieces by the number of individuals in the group. Then, multiply this rate by the number of hours worked by each individual to determine their regular rate of pay.

How do you calculate overtime in New Jersey?

According to both the NJWHL and the federal FLSA, overtime pay should amount to 1.5 times the employee’s regular pay rate, commonly known as ‘time and a half’. Non-exempt employees become eligible for overtime compensation when they work more than 40 hours in a workweek.

Follow these steps to calculate the amount of overtime pay an employee is owed:

  1. Calculate the regular rate of pay for the employee.
  2. Multiply the regular rate by 1.5 to find the hourly overtime rate.
  3. Finally, multiply the overtime rate by the number of overtime hours worked in a workweek to determine the total amount of overtime pay owed.

It is important to remember to only count hours actually worked and that hours should not be averaged over two or more workweeks.

How is overtime taxed in New Jersey?

In New Jersey, overtime pay is taxed at standard income rates, without any additional tax specifically for overtime. Your tax bracket determines how much tax you pay. Which bracket you fall into depends on your taxable income and filing status.

However, if overtime earnings significantly increase your total income, you might enter a higher tax bracket. As a result, you will owe more taxes on your entire income, not just the overtime pay. It is important to understand that moving into a higher tax bracket is temporary and only impacts the specific pay period when the extra income was earned.

Receiving Overtime Payment in New Jersey

How is overtime paid in New Jersey?

In New Jersey, overtime wages should be paid to an employee using the same method as regular wages. Wages can be delivered by regular pay channels including:

  • Check
  • Direct Deposit
  • Cash
  • Mail (if requested by the employee)

In addition, employers should provide a pay statement or ‘paystub’ to the employee for every pay period.

When do I receive my overtime paycheck in New Jersey?

In New Jersey, as per the FLSA and the New Jersey Wage Payment Law, employees should normally receive overtime compensation on their regular payday for the relevant pay period during which the overtime wages were accrued.

Employers must deliver paychecks on regular paydays established in advance. Most employees should be paid twice a month and within ten working days after the end of a pay period.

Violations of Overtime Law in New Jersey

What if my employer refuses to pay me overtime in New Jersey?

In New Jersey, if your employer fails to pay some or all of your earned overtime wages, they may be violating labor laws, specifically the New Jersey Wage Payment Law. It is recommended to contact your employer or HR department to determine if there has been an oversight, allowing them to correct the mistake.

If the issue remains unresolved, employees in New Jersey can explore the following methods to reclaim missing overtime wages:

Under New Jersey there is a six-year statute of limitations on filing a wage complaint for unpaid overtime.

What is the penalty for failing to pay overtime in New Jersey?

Employers who violate New Jersey wage laws may face penalties and potential criminal charges. First time violations can result in penalties of up to $1,000 and up to ten days of prison time. Fines for repeat violations are up to $2,000 and up to 100 days of prison time. Employees can also seek liquidated damages and legal fees as well as their unpaid wages. If it is the first time an employer has violated wage laws and this was committed accidentally, they can avoid liquidated damages if they pay the full amount owed within 30 days.

Under the federal FLSA, employers could face penalties of up to $1,000 for each violation. Intentional violations of the FLSA could lead to criminal charges, potentially subjecting the employer to fines of up to $10,000. For repeated violations, employers could face imprisonment. A deliberate violation encompasses all actions carried out purposefully or knowingly, as opposed to accidentally or involuntarily.

How can I file a wage claim for overtime in New Jersey?

In New Jersey, an employee or former employee can file a wage claim with the NJDLWD, the enforcer of New Jersey labor laws. To file a wage complaint and recover unpaid wages, you need to:

  • Collect as much information and evidence as possible to attach to the wage complaint.
  • Complete a form through the online portal.
  • Or fill out the MW-31A and send it by mail to New Jersey Department of Labor and Workforce Development Division of Wage and Hour Compliance, P.O. Box 389, Trenton, NJ 08625-0389, or by fax to (609) 695-1174.

There is a six-year statute of limitations for filing a wage complaint in New Jersey.

Alternatively, you can submit a wage claim to the US Department of Labor (DOL) to recover unpaid overtime wages:

  1. Collect as much information and evidence as possible, as it is crucial for a successful claim.
  2. Reach out to the DOL by completing an online form, or contacting the helpline at 1-866-487-9243.
  3. The DOL representative assigned to your case will work with you to determine the most effective course of action.

At the federal level, there is a two-year statute of limitations for filing a wage complaint, which increases to three years if the violation was intentional.

Please note that you can decide to file a wage complaint anonymously, in which case you will not receive updates about the claim unless a resolution is reached and wages are due to be sent to you.

Can employers retaliate against employees for making a wage claim in New Jersey?

In New Jersey, according to both the New Jersey Wage Payment Law and the FLSA, employers are forbidden from retaliating against an employee in any form for filing or threatening to file a wage claim. The FLSA states that it is illegal for any individual to ‘discharge or in any other manner discriminate against any employee because such employee has filed any complaint.’

If an employee experiences any form of retaliation, such as termination or demotion, as a consequence of filing a claim or participating in an investigation, they have the legal entitlement to lodge a retaliation complaint with the Wage and Hour Division of the DOL. Alternatively, they have the option to independently pursue legal action to secure reinstatement, recover lost wages, and seek liquidated damages.

Learn more about New Jersey Labor Laws through our detailed guide.

Important Cautionary Note

This content is provided for informational purposes only. While we make every effort to ensure the accuracy of the information presented, we cannot guarantee that it is free of errors or omissions. Users are advised to independently verify any critical information and should not solely rely on the content provided.

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