Salaried employees are individuals who receive a predetermined fixed amount of compensation at regular intervals, such as weekly or less frequently.
Specific laws govern the rights and responsibilities of salaried employees and their employers.
This article aims to provide an overview of the applicable laws and regulations concerning salaried employees in New Jersey, shedding light on pay, break and leave entitlements, and exempt and non-exempt employees.
This article covers:
- Payment of Wages for Salaried Employees in New Jersey
- Termination of Employment for Salaried Employees in New Jersey
- Salaried Employees Eligibility for Overtime in New Jersey
- Time Tracking of Salaried Employees Hours in New Jersey
- Exceptions to Overtime Exemptions for New Jersey Salaried Employees
- Deductions from Exempt Employees Salary in New Jersey
- Break Entitlements for Salaried Employees in New Jersey
- Leave Entitlements for Salaried Employees in New Jersey
Most employers in New Jersey are obligated to pay their employees at least twice a month with regard to wage payments.
However, there are exceptions as executive, supervisory, and similar employees can receive their payments once a month.
New Jersey is among many US states that allow employers to terminate employees on an “at-will” basis, regardless of the reason, as long as it’s not discriminatory or retaliatory.
Similarly, employees are free to quit their jobs without giving a reason and without penalty.
However, if an employee is terminated, their final paycheck must be paid on the regular payday, or within 10 days in the event of a labor dispute.
Certain salaried employees in New Jersey are exempt from overtime, including executives, professionals, and outside sales employees.
The minimum salary for exempt employees in New Jersey is aligned with the federal standard, which is presently set at $35,568 annually or $684 per week.
If the employee’s weekly salary is below $35,568 or their annual salary is less than that amount, and they are paid on a salary basis, they are considered non-exempt and therefor, are eligible for overtime compensation.
It’s worth noting, an employee’s exempt classification is not solely determined by receiving a certain salary, the following job categories include specific job duties that may exempt employees from overtime requirements:
- Professional, administrative, and executive positions
- Computer-related roles, such as software engineers and system analysts
- Outside sales personnel
- Employees in certain religious positions
- Specific categories of hotel and agricultural workers
Salaried employees are compensated with a fixed salary, regardless of the number of hours they put in, which relieves them from the need for hours tracking and allows them to focus on completing tasks within reasonable timeframes. Nevertheless, it can be advantageous to maintain records and timesheets of hours in situations like unexpected leaves, vacations, holidays, and sick days.
Moreover, monitoring payroll hours and complying with overtime hour regulations (if applicable according to company policies) can be of significance. While not obligatory, these records offer valuable data to salaried workers when it comes to time off tracking and their compensation.
Find out more about time tracking for salaried and hourly employees in the United States.
Nonexempt salaried employees may be eligible for overtime pay under the Fluctuating Workweek Method (FWW), which applies to those who earn a fixed salary but have a fluctuating workweek.
These employees may receive an overtime premium of one-half their regular hourly wage for hours worked over 40.
The following is a list of deductions that can be made from the salary of an exempt employee without violating the “salary basis” requirement:
- When the exempt employee is absent from work for one or more full days due to personal reasons, excluding sickness or disability.
- For full-day absences caused by sickness or disability, including work-related accidents, if the deduction is made in accordance with a genuine plan, policy, or practice that compensates for salary loss during such absences. Deductions can also be made before the employee qualifies under the plan or after the employee has used up the allotted leave.
- For unpaid disciplinary suspensions of one or more full days imposed in good faith for violations of workplace conduct rules or significant safety rules.
- Employers are not required to pay the full salary during the first or last week of employment.
- Employers are not required to pay the full salary for weeks in which an exempt employee takes unpaid leave under the Family and Medical Leave Act.
According to both federal and state law in New Jersey, employers are not required to offer meal or rest breaks to their workers.
While it’s true that there are no specific laws mandating employers to offer rest or meal breaks, many of them still do so in order to keep their employees productive.
Additionally, according to federal law, any breaks that last between 5 to 20 minutes must be paid, while breaks longer than 30 minutes don’t necessarily have to be compensated.
However, if an employee is required to work during their meal break (e.g. a factory worker who has to remain at their machine while eating), that break will be paid.
In New Jersey, employees are protected by both required and non-required leave laws. Required leave includes sick leave, family leave, holiday leave (for public employers), vacation leave (for public employers), jury duty leave, military leave, voting leave (for public employers), leave for victims of domestic violence and sexual assault, and volunteering leave.
Non-required leave options for private employees include holiday leave, vacation leave, bereavement leave, and voting leave.
Learn more about New Jersey Labor Laws through our detailed guide.
Important Cautionary Note
When making this guide we have tried to make it accurate but we do not give any guarantee that the information provided is correct or up-to-date. We therefore strongly advise you seek advice from qualified professionals before acting on any information provided in this guide. We do not accept any liability for any damages or risks incurred for use of this guide.