Sick Days, PTO, and OT, Oh My!

These are three significant issues when it comes to wage and hour laws. Compared to those working in some other developed countries, the US is practically in the stone age regarding mandatory paid sick and vacation time. Until that status changes, we must do our best with the benefits we are given.

Your employer may have policies offering these benefits, but don’t count on enforcing them by a contract claim if they’re violated. Most employers hedge their benefits and handbooks with dismissive language, making them difficult to enforce.

On the other hand, an employment offer letter, contract, or comprehensive handbook listing all the benefits for which you become eligible upon accepting employment may be easier to enforce.

Sick Time

Federal laws don’t require employers to offer paid sick time off. However, New Jersey employees may get compensation from the state’s earned sick leave and temporary disability insurance programs.

The disability insurance program provides cash benefits to those who can’t work because of a mental or physical health condition as long as it’s not related to their work (if it is, you should consider filing a workers’ compensation claim). To receive them, your healthcare provider would certify how long you will be out of work to recover, up to 26 weeks. Most New Jersey employers are required to have this insurance for employees.

You must pay into the program through your employer and meet minimum gross earnings requirements. You must have worked at least 20 weeks and earned at least $283 every week or earned $14,200 in the base year (the 15 months before your disability starts).

Exemptions include:

  • Federal government employees
  • Those working outside New Jersey
  • Employees of faith-based organizations
  • Independent contractors

Local government employees, including those working for schools, may or may not be covered since their participation in the program is optional.

New Jersey employers must provide temporary, full- and part-time employees with up to 40 hours of earned sick leave annually so they can care for themselves or a loved one. It can be used:

  • To care for themselves or a loved one
  • For a mental or physical health or injury
  • To address sexual or domestic violence against themselves or a loved one
  • To attend a child’s school-related event, conference, or meeting
  • For a quarantine based on advice from a public health authority or healthcare provider
  • To care for their children if their childcare or school is closed because of a public health emergency or epidemic

If you have a sick leave policy, it must meet or exceed the state’s legal requirements.

Earned sick leave doesn’t cover the following:

  • Those working in construction with a union contract
  • Per diem healthcare workers
  • Public employees provided sick leave at full pay under another state law or rule
  • Independent contractors who aren’t an employee under New Jersey law

You earn one hour of earned sick leave for 30 hours worked, up to 40 hours per benefit year (any regular and consecutive 12-month period determined by your employer). You’ll earn 5.33 hours of earned sick leave in four weeks if you work 40 hours a week.

Paid Time Off (PTO)

Neither state nor federal law requires employers to provide paid time off — except for Paid Sick Time benefits discussed above. Such non-mandated benefits include personal and vacation time. An employee isn’t entitled to payment for accrued PTO before their discharge because it’s not considered wages under state law, except as otherwise provided by an employer’s PTO policy. Federal law doesn’t require ex-employees to be paid accrued PTO after leaving their ex-employer.

Overtime (OT)

State and federal laws require you to be paid more if you’ve worked more than a certain amount of time in a week. Under New Jersey law, an employer must pay each employee not less than 1.5 times their regular hourly rate for each worked hour in excess of 40 hours a week. The exceptions include:

  • Anyone working in a “bona fide” executive, administrative, or professional capacity
  • Employees working on a farm or in a hotel
  • Bus company employees
  • Limousine drivers working for a company that operates limousines
  • Employees who raise or care of livestock

The federal Fair Labor Standards Act (FLSA) requires the same thing but with different exceptions. They include:

Under the FLSA, salaried employees are generally exempt from overtime requirements. But if they make less than $684/week, they may be entitled to overtime pay, which would be their weekly pay divided by 40 (for the number of hours in a workweek) multiplied by 1.5.

If you’re not protected by one law, the other may apply.

Unemployment Benefits

Every employee who works for at least 20 weeks earning at least $283 per week is eligible to collect unemployment benefits upon firing, being laid off, or management offering substantially worse terms and conditions of employment than previously enjoyed.  Unemployment benefits are paid based on workers’ deductions from their pay.  They last up to 26 weeks.  The NJ Department of Labor requires those drawing on unemployment insurance benefits to be eligible for work (not disabled) and looking for work.  There is a reporting requirement imposed as a condition of benefits.

If you are initially declared disqualified, you have the right to file an appeal and argue your case.  Our law firm does that work on behalf of employees at a flat rate for the appeal.

Kingston Law Group Offers the Help You Need from the Lawyers You Trust.

The Kingston Law Group can help. Our employment law attorneys protect the rights of employees and help them hold employers accountable for their behavior and policies of any type or stripe. If you have questions about wage and hour issues or need legal representation, email us at hisaacs@kingstonlawgroup.com or call us at 609-683-7400 to arrange a consultation at our Mercer County law office. You will be glad you did!