Separation From Employment: New Jersey

Federal law and guidance on this subject should be reviewed together with this section.

Authors: John Sarno, Employer's Association of New Jersey and XpertHR Editorial Team.

Summary

• Where verbal communications or the terms of an employee handbook have altered the at-will nature of employment and created an implied or express contract, New Jersey employees may only be terminated for cause. See Termination for Cause.
• The Conscientious Employee Protection Act (CEPA) protects New Jersey employees from retaliatory termination based on their objection to certain types of workplace misconduct. See The Conscientious Employee Protection Act.
• New Jersey employers must comply with state law pertaining to payment of final wages when an employee resigns from employment. See Termination Pay.
• New Jersey employers have discretion whether to offer unused paid time off days or other outstanding benefits to employees who resign. See Benefits Upon Resignation.
• Employers may ask outgoing employees to execute non-compete agreements or restrictive covenants, but should be aware that such agreements will only be enforceable if they meet an evidentiary standard. See Restrictive Covenants.
• New Jersey courts use a familiar standard to evaluate constructive discharge (forced resignation) cases, but New Jersey has a specific rule to determine when such a claim begins. See Constructive Discharge.