No federal or state law requires employers to provide paid or unpaid vacation time for their employees. However, if employers choose to offer a vacation leave, paid or unpaid, to their employees it must comply with applicable state law or employment contract.
The rollover policy
- Statutory Provisions Addressing Vacation Pay
The New Jersey wage laws do not prescribe that accrued and unused vacation constitutes wages and do not establish any requirements about accruing vacation or carrying it over from year to year.
- Use-It-or-Lose-It Policy
State of New Jersey has no statute governing the policy.
- Payment of Accrued Vacation on Termination
Unused vacation will not be considered wages unless an employment agreement, union contract, or company policy provides that vacation will be cashed out on termination of employment, in which case an employee may have a claim for vacation pay if the terms of the agreement, contract, or policy are not followed (Chrin v. Cambridge Hydrodynamics, Inc., 2003 WL 25754809 (N.J. App. Div. Dec. 30, 2003); see New Jersey Department of Labor & Workforce Development: Wage and Hour Compliance FAQs).
All employers with workers in the state are required to provide employees with paid sick leave. The law applies to all employees working for an employer in the state.
Employers are required to give 1 hour for every 30 hours worked. Frontloading is permitted. The annual accrual cap is 40 hours. Employees are allowed to accrue a maximum of 40 accrued hours within one year of employment.
Sick leave covers the following reasons:
Employee’s or a family member’s illness, injury or condition; preventive care; school conference; meeting regarding a child’s health or disability; reasons related to domestic or sexual violence.
Maternity, Paternity, FMLA
In addition to Family and Medical Leave Act (FMLA) and the Pregnancy Discrimination Act, New Jersey has the following laws regarding Maternity and Paternity Leave:
Temporary Disability Insurance (TDI) Program provides employees with up to two-thirds of their regular wages. It provides employees who are temporarily unable to work due to disabilities related to pregnancy or childbirth with up to 4 weeks before the childbirth and up to six weeks after the childbirth. Employees may be eligible for more benefits if they have additional complications related to childbirth or pregnancy.
Family Leave provides benefits after the recovery period up to 6 weeks, so the employees are able to bond with their newborns.
Jury Duty Leave
Employers must allow employees to take unpaid leave for time spent complying with a jury summons. An employer may not discharge, penalize, threaten, or otherwise coerce an employee because he or she is required to attend court for jury service.
No federal or state law require an employer to provide the employee with paid or unpaid bereavement leave or with any time off to organize or attend a close family member’s funeral.
New Jersey does not have a law that requires an employer to grant its employees leave, either paid or unpaid, to vote.
New Jersey law provides reemployment rights to U.S. or state military service members, in addition to Uniformed Services Employment and Reemployment Rights Act.
The law protects any employee who leaves work, other than a temporary position, to do any of the following:
- Complete military service for the U.S. armed forces
- Participate in military assemblies or annual training
- Attend service schools conducted by the U.S. armed forces for up to three months in a four-year period
Following active duty, an employee must be reinstated to the same or similar position he or she previously held. If this is not possible, the employee must be restored to any available position for which he or she is qualified, upon request. The employee may not be discharged without cause for one year after reemployment.