Employers Beware: New Jersey Enacts One Of The Toughest 'Wage Theft' Laws In The Country

On August 6, 2019, Acting Governor Sheila Oliver signed the New Jersey Wage Theft Act (WTA) into law. The law has been touted by proponents as the toughest wage theft statute in the country. Notwithstanding its name, the WTA goes far beyond attempting to prevent and punish intentional "wage theft" by significantly expanding the liability even the best-intentioned employers will face for state wage law violations.

The majority of the WTA took effect immediately, amending a host of existing New Jersey civil and criminal statutes. The WTA is confusingly constructed, however, and it remains to be seen precisely what the interplay will be among its various sections.

For most employers, one critical takeaway is that the WTA requires employers to provide current and newly hired employees a written statement of wage rights, which will be produced by the New Jersey Department of Labor and Workforce Development (NJDOL). In addition, the WTA substantially amends three key New Jersey wage statutes:

the New Jersey Wage Payment Law (NJWPL) (N.J.S.A. 34:11-4.1, et seq.), which governs, among other things, the time and mode of payments of wages to employees; the New Jersey Wage and Hour Law (NJWHL) (N.J.S.A. 34:11-56a, et seq.), which, among other things, requires the payment of minimum and overtime wages to employees; and the New Jersey Wage Collection Law (NJWCL) (N.J.S.A. 34:11-57, et seq.), which empowers the NJDOL to investigate and remedy alleged wage violations. This article highlights the significant amendments to these statutes and related provisions.

Significant Amendments to the New Jersey Wage Payment Law

Express Prohibition of Retaliation

The WTA amends the NJWPL to expressly prohibit retaliation against employees who complain about their employers' alleged violations of the NJWPL. Employee activity explicitly protected from retaliation under the WTA is not limited to formal complaints filed with the NJDOL or a court, but includes employee complaints to employers or employee representatives (if any) and even general discussions about wage rights with other employees. In instances where adverse action is taken against an employee within 90 days of his or her filing a complaint with the NJDOL or in a court, the WTA creates a rebuttable presumption that the adverse action was taken against the employee in retaliation for the filing of the complaint. In addition to the various other penalties and remedies, the WTA also provides that an employer...