NJ Implements New Labor Laws This Summer - Impacting Workers and Employers

Sweeping Changes Took Effect July 1, Including the Domestic Workers’ Bill of Rights and Revised Overtime Exemptions

NEW JERSEY - As the summer of 2024 approaches, the New Jersey Department of Labor and Workforce Development (NJDOL) is spotlighting several pivotal new laws and regulations set to alter the landscape for both workers and employers statewide. Key changes include the introduction of the Domestic Workers’ Bill of Rights, significant adjustments to the federal salary threshold for overtime exemptions, an increase in the municipal Prevailing Wage Contract Threshold Amount, and new requirements for online payroll reporting among public works contractors.

Domestic Workers’ Bill of Rights: A New Era Begins July 1

Effective from July 1, the Domestic Workers’ Bill of Rights, enacted under Governor Phil Murphy’s administration, confers a wide array of rights and protections to domestic workers. This landmark legislation covers various aspects of employment such as anti-discrimination measures, privacy rights, and the necessity for written contracts. It encompasses all domestic workers engaged in tasks like child care, house cleaning, and caregiving across private households, whether employed directly or via an agency, irrespective of immigration status.

Federal Salary Threshold Adjustment: Raising the Bar for Overtime Pay

Also starting July 1, the Biden-Harris Administration's newly finalized rule kicks in, progressively raising the salary threshold for exempting certain managerial, administrative, or professional employees from federal overtime pay requirements. The initial increase sets the threshold at $43,888 annually, with a subsequent rise to $58,656 scheduled for January 1, 2025.

Municipal Prevailing Wage Contract Threshold Amount: A Significant Boost

Concurrently, the threshold amount for municipal contracts subjected to the New Jersey Prevailing Wage Act will see an uplift from $16,263 to $19,375. This adjustment, which is revisited every five years based on the Consumer Price Index, dictates that municipal public works contracts meeting or exceeding this value are obliged to adhere to the act, ensuring fair wages for public work.

Streamlined Compliance: NJ Wage Hub for Certified Payroll

Starting August 15, a new mandate requires all contractors and subcontractors involved in public works to submit their certified payroll records online via the NJ Wage Hub. This digital move aims to simplify compliance with state labor laws, bolster worker protections, and enhance transparency in wage fairness on public projects.

These legislative updates signify a robust effort by the NJDOL to fortify worker rights and ensure equitable practices across various sectors in New Jersey. For more details on these changes and their implications, visit the NJDOL website or the specific webpages dedicated to these new regulations.