Payment of Wages: New Jersey
Federal law and guidance on this subject should be reviewed together with this section.
Author: Vicki M. Lambert, The Payroll Advisor
- Employers in New Jersey may pay employees in cash, by check, by direct deposit, or with electronic paycards provided certain conditions are met. Penalties apply for noncompliance. SeeWage Payment Methods.
- New Jersey law requires different pay frequencies for exempt and nonexempt employees. It also requires that employees be paid within a certain number of days after the end of each pay period. Penalties may be imposed for violating these requirements. SeePay Frequency.
- The law specifies the types of deductions that may and may not be made from employees' pay. Penalties are imposed for noncompliance. SeePermitted and Prohibited Wage Deductions.
- All employees must be provided with a statement of pay deductions for each pay period in which deductions are made. Electronic pay statements are also permitted. Penalties apply for failure to provide pay statements. SeePay Statement Requirements.
- Terminated employees must be paid within a certain amount of time, whether employment ends voluntarily or involuntarily. Special provisions apply to labor disputes. Employers may face penalties for violating these requirements. SeeTermination Pay.
- Wages due to deceased employees may only be paid to certain people in a certain order, and only if the individuals satisfy specific prerequisites. SeeDeceased Employee Wages.
- Wages that remain unclaimed by an employee for one year are considered abandoned. Employers are required to file a report on specific forms and remit the wages if they are above a certain amount to a state agency by a particular due date. Employers are also required to send notice of the unclaimed wages to the employee's last known address within a certain time frame. Stiff civil penalties, plus interest, may be imposed for noncompliance. SeeUnclaimed Wages.