New Jersey Payroll Rules

Frequency of Payments

You must pay your employees at least twice per month on regularly scheduled paydays. You must pay them within 10 days after the end of the pay period.

If the regularly scheduled payday falls on a nonwork day, then you must pay your employees on the preceding workday.

Manner of Payments

You may pay your employees by cash or check. You pay your employees via direct deposit with their written consent.

Payment Upon Separation

If an employee leaves the company for any reason, you must pay them by the next regularly scheduled payday.

If an employee is suspended due to a labor dispute (like a strike), which involved the employees who process payroll, you may have an additional 10 days to pay your employees.

Deductions

You can only make a deduction from an employee’s paycheck if:

• required or empowered to do so by state or federal law;
• the amounts withheld are for
  • contributions authorized in writing or by a collective bargaining agreement to employee welfare, insurance, hospitalization, medical, surgical, pension, retirement, and profit-sharing plans;
  • contributions authorized in writing or by a collective bargaining agreement for payment into a company-operated thrift plan, or security option or security plan to buy securities of the employing company, affiliated company, or other company at market price or less;
  • payments authorized by the employee into the employee’s personal savings accounts;
  • payments for company products, employer loans, safety equipment, government bonds, and to correct payroll errors;
  • contributions authorized by the employee for organized and recognized charities;
  • payment authorized by the employee or by a collective bargaining agreement for the rental of work clothing or the laundering and dry cleaning of that work clothing;
  • labor organization dues and initiation fees;
  • contributions authorized in writing by the employee or by a collective bargaining agreement to a political committee or continuing political committee established by the labor union for making contributions to aid or promote nomination, election, or defeat of any candidate for a public office of the state, county, municipality, or school district or for the defeat of any public question;
  • contributions authorized in writing by an employee to any political committee or continuing political committee; or
  • payments authorized by the employee for employer-sponsored programs for the purchase of insurance or annuities on a group or individual basis.

You cannot deduct the following from an employee’s paycheck:

• cash shortages;
• breakage, damage, or loss of the employer’s property;
• the cost of required uniforms or clothing;
• required tools; or
• other necessary items.

Uniforms & Other Required Equipment or Tools

If a uniform cannot be worn outside of work, then you cannot require an employee to pay for it.

If you require the employee to wear specific clothing that is acceptable outside of work and require the employee to furnish more than one style, type or color of clothing during any one (1) year of employment, you must pay each employee the amount the employee is required to pay for the newly required clothing. You must make the payment in the week the change is required.

If you hire kitchen people, cooks, and dishwashers, you must pay for and provide maintenance and cleaning of their uniforms.

Pre-Hire Medical, Physical, & Drug Tests

You cannot require an employee to pay for the cost of any pre-hire exams.

Notice of Wage Reduction

If you plan on reducing an employee’s wage rate, you must notify them before the reduction.

Paystubs

New Jersey does not have any laws about whether you have to give each employee a paystub on payday.

Recordkeeping

For each employee, you must keep the following records for at least six (6) years:

• name and address
• birthdate (if under 18),
• total hours worked each day and each workweek,
• earnings (including regular hourly wage),
• gross to net amounts paid with itemized deductions, and
• the basis on which wages are paid.

Notices

New Jersey does not require you to post payroll-related notices.