If you're doing business in New Jersey, you've got to keep up with changes in the Garden State's employment and labor laws. Many legal changes that get passed during a legislative season go into effect on the first of every year – and 2022 is no different.
Is your New Jersey business ready to comply with legal changes on January 1st, 2022?
The best way to stay on top of changes in state and federal law is to work with a business lawyer who’s got your company’s best interests in mind. Proper and timely compliance with the law allows your business to operate without interruptions, penalties, or fines. Your business attorney can help you anticipate and implement new business policies in order to adapt.
When it comes to complying with new laws, it’s better to get started on the process sooner rather than later. You want to be prepared for legal changes before they come into effect, if possible. This ensures a much smoother transition for you and your employees. Failing to comply with these changes could leave you open to liability and employee lawsuits.
Higher Minimum Wage for New Jersey Employees
Starting January 1st, 2022, New Jersey is raising its minimum wage for most employees to $13 an hour. This is a dollar more than the 2021 minimum wage of $12 per hour and $5.75 more than the federal minimum wage. Your business must be in compliance with the new minimum wage by January 1st or you could face penalties or employee liability.
Some types of business and employees are still exempt from minimum wage laws:
How can you ensure that your business remains competitive and compliant?
The minimum wage in New Jersey will increase by $1 every year until 2024 when it will reach $15 an hour. The state currently has no additional local or city minimum wage laws.
Penalties for Employee Misclassification
Employee misclassification is a major workplace violation that can leave you vulnerable to thousands of dollars in lawsuits and penalties.
Misclassification happens when companies misclassify employees as independent contractors in order to avoid the cost of providing benefits and insurance to those employees. This is an illegal business practice that can get your company in hot water. Not only can you be fined and penalized by the government, but your workers could sue you in court.
In 2021, New Jersey Governor Murphy signed new bills into law that make it easier to identify companies who are misclassifying employees and penalize them for violations.
Call the Philadelphia offices of Holmes Business Law now at 215-482-0285 or schedule a call with our legal team. The sooner you get started on compliance for the new year, the better.
Sarah E. Holmes is a Philadelphia business attorney and strategist that helps start ups and established businesses looking to expand, protect their assets and increase their profits in an approachable, down-to-earth way. When you're looking for a business lawyer in Philadelphia, the Main Line or New Jersey, we can help.