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New Jersey Bill Requires More Information on Pay Stubs

By James M. McDonnell and Beth L. Braddock
  • March 7, 2017

The New Jersey Assembly Labor Committee has voted 8-0 in favor of amending the wage notification requirements under the state Wage Payment Law to require private and public employers to provide employees a statement for each pay period that includes deductions, gross wages, net wages, rate of pay, and the number of hours worked during the pay period. Under the current law (N.J.S.A. § 34:11-4.6), employers must provide only a statement as to deductions from wages in each pay period.

The bill (A-4245) would not amend the recordkeeping requirements (i.e., on hours worked), which exempt only those employed in bona fide executive, administrative, or professional capacities or in the capacity of an outside salesperson.

The Assembly Labor Committee in its statement on A-4245 explained the purpose of the bill is to provide employees with “the ability to determine whether their wages are being properly calculated.”

Additionally, the bill requires employers that pay non-exempt employees on a salary, commission, or other non-hourly basis provide a statement as to the rate of pay and hours worked. The stated purpose of this requirement is to “increase employer accountability and protect employees from intentional or inadvertent wage calculation errors.”

Employers should consider reviewing their current payroll practices now. If current pay stub information fails to provide this information in A-4245, employers should consider developing a plan to comply in the event the bill passes in the legislature. Jackson Lewis will provide updates as the bill proceeds in the legislature. Please contact a Jackson Lewis attorney with any questions about this and other workplace developments.

©2017 Jackson Lewis P.C. This Update is provided for informational purposes only. It is not intended as legal advice nor does it create an attorney/client relationship between Jackson Lewis and any readers or recipients. Readers should consult counsel of their own choosing to discuss how these matters relate to their individual circumstances. Reproduction in whole or in part is prohibited without the express written consent of Jackson Lewis.

This Update may be considered attorney advertising in some states. Furthermore, prior results do not guarantee a similar outcome.

Jackson Lewis P.C. represents management exclusively in workplace law and related litigation. Our attorneys are available to assist employers in their compliance efforts and to represent employers in matters before state and federal courts and administrative agencies. For more information, please contact the attorney(s) listed or the Jackson Lewis attorney with whom you regularly work.

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