New Jersey has adopted one of the strongest wage theft laws in the country and jumps to the forefront in protecting employee wages. Effective November 1, 2019, New Jersey employers will face enhanced civil and criminal penalties, including possible jail time, for failing to pay employees in accordance with the New Jersey Wage and Hour Law, the New Jersey Wage Payment Law and the New Jersey Wage Collection Law.
Enhanced Penalties for Violators: Under the new Wage Theft Act, an employer who fails to pay minimum wage or the agreed-upon wages to an employee, any overtime compensation due the employee, or pay the employee in a manner required by law (e.g., paying employees in cash without deducting appropriate taxes) is liable to the aggrieved employee for the full amount of the wages owed plus liquidated damages up to 200%, costs of the litigation and attorneys’ fees. An employer seeking to avoid liquidated damages must 1) be a first-time offender; 2) demonstrate that the failure to pay appropriate wages was an inadvertent, good faith mistake, and 3) acknowledge that it violated New Jersey wage laws and pay the amount owed within 30 days. An agreement between the employer and employee to work for less wages than required by law is not a defense to a violation.
In addition, violators face enhanced fines of $500 and 20% of the owed wages for a first offense, increased to $1,000 and 20% for each subsequent offense, and administrative penalties ranging from $250 for a first violation to $500 for every subsequent violation.
Lindabury, McCormick, Estabrook & Cooper, P.C. Firm News & Events


