Almost 70% of New Jersey employers surveyed are confident in their ability to comply with New Jersey’s earned sick leave law. However, mostly small businesses find challenges in administering the state’s sick leave legislation, especially those companies operating on non-traditional schedules.
The survey of more than 160 employers across industries and business sizes was conducted by The Employers Association of New Jersey (EANJ) and was released on Thursday.
The survey was conducted as part of the Cultivating Access, Rights, and Equity (CARE) Grant Program, funded by the New Jersey Department of Labor and Workforce Development. It was conducted from mid-January through March 2025.
“Our findings show that employers overwhelmingly want to comply with the law, and, for many, the process has been relatively straightforward,” said Amy Vazquez, vice president of EANJ. “However, employers, especially small employers, often struggle with understanding the basic tenets of the law and how to handle specific situations as they arise.”
Among its findings, 69% of employers reported strong confidence in their ability to comply with the law. Nearly 40% provide more than the mandated 40 hours of paid sick leave annually, and 26% offer payout options when an employee separates from the organization. While most employers allow leave carryover, there are differences in approaches to accrual and usage, with some policies falling short of legal requirements. Employers said there is a need for clearer guidance, model policies, and ongoing training.
One challenge among employers is how to handle potential abuse or misuse of leave by employees, with some employers unsure how to manage these situations. Other employers noted that they find patterns of frequent Friday/Monday calls out.
Businesses with irregular or non-traditional schedules are particularly affected. “As a business that employs very part-time, intermittent workers, one of the biggest challenges we face with paid sick time is aligning it with the flexible, on-demand nature of our workforce,” said one respondent. “All of our team members work when they have clients and are not on a regular, fixed schedule. This means they do not have consistent hours or guaranteed work each week. Because of this, offering paid sick time becomes complex.”
Employers also report confusion around accrual and carry-over rules, particularly for part-time, per diem, and seasonal staff. While the law requires that unused sick time either be paid out or carried over at the end of the benefit year, 12% of respondents indicated they have a “use-it-or-lose-it” policy, which does not comply with these carry-over/payout requirements. Many also struggle with human resources and payroll systems that are not easily configured to track earned leave.
