Compliance Watch:

What are my rights as a salaried employee in New Jersey?

Following the Fair Labor Standards Act (FLSA) and labor regulations in New Jersey, salaried employees are working individuals who are entitled to receive a fixed amount of pay at regular intervals, such as every two weeks or once a month. Furthermore, certain salaried employees may also be eligible for sick leave pay, and many of them meet the requirements to receive benefits under the Family and Medical Leave Act (FMLA).

Some employees fall under the exempt category, and this includes specific salaried workers, particularly those in roles like executives, administrators, professionals with specialized skills or expertise, computer professionals, outside sales representatives, and highly compensated employees. However, if you are a salaried employee but do not hold one of these designated positions, you may be categorized as non-exempt, which means you are eligible for overtime compensation.

Read more about New Jersey labor law with our guides on your rights as an hourly employee and salaried employee laws.

• Minimum Wage: In New Jersey, non-exempt salaried employees are entitled to receive the state’s minimum wage, which is currently set at $15.13 per hour. However, exempt salaried employees should receive a minimum annual compensation of $35,568 or a minimum of $684 each week.
• Overtime Pay: Non-exempt salaried employees are entitled to receive overtime pay at a rate of 1.5 times their regular hourly rate for any hours worked beyond 40 hours in a single workweek. 
• Meal and Rest Breaks: Labor laws in New Jersey do not require employers to provide meal or rest breaks for adult employees. 
• Family and Medical Leave: Qualified employees have the right to take unpaid leave for specific medical and family-related reasons under the Family and Medical Leave Act (FMLA).
• Equal Pay: The New Jersey Law Against Discrimination (LAD) ensures that individuals are not compensated unfairly because of their race, religion, gender, sexual orientation, gender identity, national origin, disability, and other protected qualities. LAD makes it illegal for employers to discriminate against employees based on characteristics like race, religion, color, ancestry, age, marital status, sexual orientation, genetic information, pregnancy, gender identity, disability, military service, or refusal to undergo genetic testing. Compensation differences should solely be based on factors like merit, seniority, work quality, and quantity.
• Whistleblower Protection Laws: The Conscientious Employee Protection Act prohibits employers from retaliating against employees who engage in activities to protect themselves against the employer.
• Anti-Discrimination Laws: All employees are safeguarded against workplace discrimination based on the following protected characteristics: disability, national origin, ancestry, race, color, religion, gender, and military veteran status.

The New Jersey State Wage and Hour Law mandates a minimum wage and overtime rate for employees. This law states that covered workers receive compensation at a rate of one and a half times their regular pay for any hours worked beyond 40 hours in a workweek, subject to specific exceptions.

Some salaried employees may not be eligible for overtime pay, but not all job positions fall into this category. The state adheres to federal guidelines that define four specific groups of exempt employees. These employees include certain professionals, executives, computer employees, and administrative employees.

Employers are not permitted to deduct wages from an employee’s wages other than for items required and specifically permitted by federal law and state law.

According to both federal and state law in New Jersey, employees are not entitled to receive meal or rest breaks from their workers.

The New Jersey Earned Sick Leave Law allows workers to accumulate 1 hour of sick leave for every 30 hours they work, with a maximum of 40 hours per year. However, employers are also allowed to establish additional regulations that offer extra time off.

An employer should allow employees to use their earned sick leave for the following reasons:

• Time off for an employee’s own physical or mental health needs or preventive medical care.
• Time off to care for a family member who is ill or undergoing medical treatment.
• Time off for reasons related to domestic or sexual violence, including seeking medical attention, counseling, relocation, or legal assistance.
• Time off when the employee’s workplace or a child’s school or care facility is closed due to a public health emergency or when a public health authority deems an employee’s presence would endanger others’ health.
• Time off to attend school-related events for a child or to participate in discussions about a child’s health condition or disability.

New Jersey’s state regulations do not impose an 8-hour daily limit for all employees across fields but instead place the maximum hours an employee can work in a week at 40 hours. Consequently, employers within the state have the option to provide adaptable work options for their employees.

Typical flexible work arrangements refer to alternate work schedules, enabling employees to exceed 40 hours one week and reduce hours the next, as well as remote work setups that permit employees to work outside the office, provided they fulfill all their job responsibilities.

To classify exempt and non-exempt status, the state of New Jersey complies with the Fair Labor Standards Act (FLSA). The FLSA regulates that certain salaried employees don’t get extra pay for working overtime, even if they work over 40 hours a week, they won’t receive extra money. On the other hand, non-exempt employees have the right to be paid extra for hours they work beyond 40 hours a week.

In New Jersey, your employee status as exempt or non-exempt is determined based on criteria from the Fair Labor Standards Act (FLSA):

• Salary Level: If your yearly salary is over $35,568 or $684 per week, you may qualify as exempt.
• Salary Basis: Being guaranteed a minimum compensation regardless of your actual hours worked could make you exempt.
• Work Role and Responsibilities: To be classified as exempt, you must meet the salary level and salary basis criteria and perform job duties falling under exempt categories. These duties can involve executive responsibilities, supervising two or more employees, specialized education tasks, and exercising discretion and judgment.

New Jersey’s minimum wage is $15.13 per hour, whilst the federal minimum wage is $7,25. The minimum salary requirements for salaried exempt employees are set by the FLSA. Currently, an exempt employee in New Jersey must receive a weekly compensation of $684.

When a salaried employee that qualifies for overtime works more than 40 hours in a single workweek, they’ll receive overtime pay at a rate of one and a half times their usual wage.

Here are some valid of the permissible reasons to deduct from an exempt employee’s salary in New Jersey  without breaking the “salary basis” rule:

• If the employee takes a full day off for personal reasons (not due to sickness or disability).
• If the employee is absent for a full day due to sickness, disability, or work-related accidents, and you have a legitimate plan in place to compensate for salary loss during such absences. You can make deductions before or after the employee uses up their allotted leave.
• If you impose unpaid suspensions of one or more full days as a fair disciplinary measure for breaking workplace rules or safety rules.
• You don’t have to pay the full salary during the first or last week of employment.
• You don’t have to pay the full salary for weeks when an exempt employee takes unpaid leave under the Family and Medical Leave Act.

New Jersey laws provide the following important protections and benefits:

• Employers cannot discriminate or retaliate against workers in protected categories. They must also ensure equal pay and protect whistleblowers.
• Equal pay and protection from retaliation are guaranteed when reporting discrimination or labor law violations.
• Employees have rights to different types of leave, such as domestic violence, jury duty, witness, and military leave.
• Qualifying employees are entitled to earned sick leave under the Earned Sick Leave Law.
• The Fair Labor Standards Act requires minimum wage payment for all hours worked and overtime pay at one and a half times the regular rate for extra hours.

As an employee in New Jersey, if you come across any problems related to labor laws or workplace rules, you can inform the right government offices and federal agencies. These issues might include problems regarding your wage, how many hours you work, unsafe conditions at your job, or unfair treatment.

If you think you’ve been treated unfairly because of discrimination, you can make a complaint with the U.S. Equal Employment Opportunity Commission. If your wages are not being paid correctly, you can file a complaint with the Department of Labor and Workforce Development.