Skip to Page Content

NJ NEW laws: Diane B. Allen Equal Pay Act AND Paid Sick Leave Act

    May 3, 2018

    Diane B Allen Equal Pay Act:  

    The Equal Pay Act generally requires equal pay for “substantially similar work” by employees and provides coverage for all protected classes.  Potential liability under the Equal Pay Act includes treble damages, costs, attorney’s fees, and back pay, among other forms of relief. The new law lengthens the statute of limitations for claims based on pay equity to a period of six years (in contrast to the two years under the New Jersey Law Against Discrimination). Additionally, unlike pay equity laws in Massachusetts, Oregon, and other states, the New Jersey statute permits a private cause of action. Before July 1, businesses should evaluate their compensation and review systems to ensure compliance with the law.

    NJ Paid Sick Leave Act:  

    The New Jersey Paid Sick Leave Act requires companies to provide employees up to 40 hours of paid sick leave each benefit year. Under the new law, employees will accrue one hour of paid sick leave for every 30 hours worked. The new law sets out specific reasons for which leave may be taken and includes notice requirements, recordkeeping provisions, anti-retaliation provisions, and potential carryover of unused leave. Businesses with paid-time-off policies already may not need to change their policies if the policies’ usage and accrual provisions are at least as favorable as those under the new law.

    Both laws have been signed by the governor.  

    Proposed regulations