Business Expansion and Growth
13 mins read
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Published on:
Jul 9, 2025
Updated on:
Jul 9, 2025
Our Employer of Record (EOR) solution makes it easy to hire, pay, and manage global employees.
Book a demoHiring in New Jersey is more than a routine HR function; it’s a strategic business decision wrapped in legal obligations and evolving labor standards. Whether you're a startup launching in Newark or a mid-sized company expanding in Trenton, understanding the nuances of employment law, classification, tax structures, and compliance requirements is critical.
New Jersey’s labor market is fueled by diverse industries, a highly educated workforce, and a complex regulatory framework.
This guide synthesizes those elements into a clear, actionable roadmap for employers who want to navigate hiring in New Jersey effectively, from registration and onboarding to labor laws, payroll, and classification.
Before you can legally employ workers in New Jersey, you must meet the state's specific employment and legal obligations. This begins with completing the employer registration process, confirming identity and employment authorization, and adhering to critical wage and hour laws. Every business in the state must be set up properly to remain compliant with both federal and state standards.
To begin hiring employees in New Jersey, you must first register as an employer at both the federal and state levels.
Employers in New Jersey must ensure that each new hire is legally authorized to work in the United States. The authorization is verified through Form I-9, Employment Eligibility Verification, required under federal law. The employee must complete Section 1 of Form I-9 on or before their first day of employment, and the employer must complete Section 2 within three business days of the employee’s start date by reviewing acceptable identity and work authorization documents.
While use of the federal E-Verify system is optional for most private employers in New Jersey, it is required for certain federal contractors and may be mandated by local jurisdictions or public contracts. E-Verify provides real-time verification of an employee’s I-9 data against federal records but is not a substitute for the Form I-9.
For employees under the age of 18, New Jersey child labor laws require the employer to obtain an employment certificate, commonly known as “working papers.” As of June 2023, this process is conducted entirely online through MyWorkingPapers.nj.gov.
In addition, employers must also comply with strict limits on the hours and types of work minors can perform, which vary depending on age, whether school is in session, and the industry. All minor employees must be provided a safe and legally compliant work environment, consistent with both state law and federal child labor standards under the Fair Labor Standards Act (FLSA).
All employers in New Jersey must comply with both state and federal labor laws, many of which offer protections beyond federal standards. This includes minimum wage laws, workplace safety rules, earned sick leave, and nondiscrimination statutes. Employers are required to carry workers’ compensation insurance, provide information on workplace rights, and display official labor law posters in visible areas of the workplace.
In particular, the New Jersey Law Against Discrimination (NJLAD) prohibits discrimination in employment based on a wide array of characteristics, including race, religion, age, gender identity, sexual orientation, disability, and more. New Jersey’s Conscientious Employee Protection Act (CEPA) protects whistleblowers from retaliation when reporting illegal or unethical conduct.
The state's progressive wage and hour laws are enforced by the New Jersey Department of Labor, which has the authority to audit employers and impose penalties for noncompliance. Adhering to these laws isn’t optional, noncompliance can quickly escalate into legal and financial complications.
Are you planning to start onboarding new employees on other U.S. states? Check out our guide on How to Hire Employees in New York.
Hiring in New Jersey means more than extending a job offer. Employers need to understand New Jersey's labor laws to ensure their practices align with both federal and state requirements. This includes minimum wage regulations, handling tax withholdings, and understanding the role of the New Jersey Department of Labor in overseeing compliance.
As of 2025, the minimum wage in New Jersey is $15.49 per hour for most workers, putting it well above the federal minimum. Some employers, such as seasonal businesses or those with fewer than six employees, may be subject to a slightly lower rate, currently at $13.73 per hour. These rates are adjusted annually as part of the state's phased plan toward a universal $15 minimum wage.
Employees classified as “tipped” must be paid a cash wage of at least $5.26 per hour, with tips making up the rest. However, if tips don’t bring them to the minimum wage in New Jersey, employers must make up the shortfall. Employers must also comply with wage and hour laws governing overtime. Per federal and New Jersey regulations, most employees must be paid 1.5 times their regular hourly rate for any hours worked beyond 40 in a workweek.
Employers are required to provide pay statements and must maintain payroll records, both for internal use and in the event of a wage audit by the New Jersey Department of Labor.
Once your new hire begins work, you must ensure compliance with federal and state tax withholding requirements. This includes collecting and remitting:
Payroll taxes must be reported quarterly via Form NJ-927 and WR-30, which are submitted to the New Jersey Division of Revenue. New Jersey employers also have specific due dates and formats for tax filing, as outlined in the Employer’s Tax Guide published by the state.
The New Jersey Department of Labor and Workforce Development is a key regulator and resource for all employers in New Jersey. This agency enforces labor standards, ensures employers provide earned benefits, and investigates wage theft, misclassification, and discrimination complaints. The Department also administers programs such as the New Jersey Earned Sick Leave, Temporary Disability, and Family Leave Insurance programs.
The Department’s compliance audits can be triggered by employee complaints, inconsistencies in filings, or random selection. Employers must maintain records for each employee's pay, hours, benefits, and job classification to demonstrate compliance if audited.
Once you've made a successful hire, the next step is to ensure a smooth and compliant transition into the workplace. Onboarding new employees in New Jersey is a legal necessity. Employers in New Jersey must meet several federal and state requirements when bringing a new hire on board, from verifying employment eligibility and submitting new hire reports to providing critical notices about earned sick leave and workplace rights. A well-structured onboarding process helps businesses in the state stay compliant while setting the foundation for long-term employee success.
Effective onboarding does more than fill out paperwork. For employers in New Jersey, onboarding new employees means establishing legal documentation, enrolling workers in benefits, and integrating them into company culture.
After accepting a job offer, every new hire must complete Form I-9 to verify identity and employment authorization. Employers must also collect W-4 and NJ-W4 forms for income tax withholding purposes.
Employers are required to report new hires to the New Jersey Department of Human Services via the New Jersey Child Support Employer Services portal. This step is required by state or federal law and helps enforce child support and prevent fraud.
Employees should receive:
Orientation sessions often include safety training, benefits education, and introductions to company policies. Structured onboarding increases retention, reduces errors, and demonstrates that your business is invested in your employees.
The state of New Jersey offers many tools to support employers in training and developing talent. Programs administered by the New Jersey Department of Labor, such as Return & Earn and the On-the-Job Training Grant, help fund training costs for eligible new hires.
Employers in New Jersey can also work with local Workforce Development Boards to gain access to recruitment pipelines, apprenticeship grants, and sector-specific initiatives. These resources not only streamline the hiring process but also help address skill gaps and promote long-term employment stability.
Proper worker classification is a cornerstone of compliance for any business in the state of New Jersey. When hiring employees in New Jersey, employers must determine whether a worker should be treated as an employee or an independent contractor. Misclassifying a new hire can lead to significant financial penalties, back taxes, and liabilities related to benefits and labor protections. Understanding the state's specific employment tests and using the proper tools from the New Jersey Department of Labor helps ensure each worker is classified correctly and legally from day one.
Accurate classification of employees is essential. A person is considered an employee if the employer controls the details of how the work is performed. On the other hand, independent contractors manage their own schedule and tools, work for multiple clients, and are not subject to the same controls.
The state of New Jersey applies the strict ABC Test to determine whether workers are employees or independent contractors. Under this test, a worker is considered an employee unless all three conditions are met:
A. The worker is free from control or direction in performing the service;
B. The work performed is outside the usual course of business or outside the places of business;
C. The worker is engaged in an independent trade, occupation, or business.
If a worker does not meet all three criteria, they must be treated as an employee, not a contractor.
New Jersey employers must use the Worker Classification Questionnaire provided by the New Jersey Department of Labor to evaluate whether a worker is properly classified. Misclassification exposes business in the state to unpaid taxes, retroactive benefits, and penalties.
Handling payroll and employment taxes is one of the most critical, and heavily regulated, responsibilities for New Jersey employers. Once a new hire joins your business in the state, you must ensure accurate withholding, timely tax filings, and proper contributions to state and federal programs. From income tax and unemployment insurance to family leave and disability programs, every payment and report must align with New Jersey’s labor laws and tax codes.
Employers must withhold federal income tax and New Jersey Gross Income Tax from each employee's paycheck. Employees need to complete both federal and state withholding forms (W-4 and NJ-W4). Withholdings must align with the wage and hour laws that govern earnings, deductions, and payment frequency.
Timely submission of these withholdings to the New Jersey Division of Revenue is essential to avoid penalties. The identification number obtained during employer registration is used for all remittances.
Under the New Jersey Unemployment Compensation Law, employers must contribute to the unemployment insurance system. These contributions vary by employer experience rating, but new employers pay a set rate until they build a claims history.
Employers must also provide Form BC-10 to any separating employee. This form outlines how the former employee can claim benefits per New Jersey unemployment compensation standards.
The New Jersey Family Leave Act and Family Leave Insurance (FLI) program allow workers in New Jersey to take up to 12 weeks of paid time off to care for a new child or family member. The program is funded by employee payroll deductions, but employers must administer the withholdings and provide written notice at hire and during qualifying events.
The employer plays a critical role in facilitating the application process, tracking leave, and ensuring accurate contributions are made.
Understanding and complying with New Jersey’s labor laws is essential for any employer operating in the state. From anti-discrimination protections to unemployment insurance rules, these regulations shape how businesses manage and support their workforce.
The New Jersey Law Against Discrimination prohibits workplace discrimination based on protected traits such as race, religion, national origin, disability, age, and gender identity. This applies to all employers with 50 or more employees, but many provisions also apply to smaller businesses.
Employers must ensure anti-discrimination training, establish grievance procedures, and promote a workplace free from harassment. Violations can result in lawsuits, fines, and damage to a company’s reputation.
The New Jersey Unemployment Compensation Law requires employers to pay unemployment taxes, maintain records, and provide information to both the New Jersey Department of Labor and terminated employees. Employers also have the right to contest unjustified benefit claims, but they must do so promptly.
Because New Jersey’s labor laws change frequently, employers should subscribe to alerts from the New Jersey Department of Labor, consult the New Jersey Business Portal, and review the Employer’s Tax Guide regularly. Staying proactive helps prevent compliance issues before they arise and keeps your hiring practices aligned with current regulations.
Employers in New Jersey must also conduct regular internal audits, train HR personnel, and document all processes thoroughly to remain in compliance with federal and state standards.
Ready to Hire in New Jersey?
Hiring employees in New Jersey comes with complex legal, tax, and compliance responsibilities but you don’t have to manage them alone.
Rivermate simplifies hiring in New Jersey by handling onboarding, payroll, benefits, and legal compliance through our Employer of Record platform.
Focus on growing your business; Rivermate will take care of the rest.
Founder & Managing Director
Lucas Botzen is the founder of Rivermate, a global HR platform specializing in international payroll, compliance, and benefits management for remote companies. He previously co-founded and successfully exited Boloo, scaling it to over €2 million in annual revenue. Lucas is passionate about technology, automation, and remote work, advocating for innovative digital solutions that streamline global employment.
Our Employer of Record (EOR) solution makes it easy to hire, pay, and manage global employees.
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