As we head into 2026, New Jersey’s employment law landscape is shaped by a year that included consequential judicial decisions and a busy legislative cycle.
From proposals to codify the “ABC test” used to determine independent contractor status to expanding the state’s captive audience ban, lawmakers spent the past year laying groundwork for changes that may redefine employer obligations in the year ahead.
Notable Employment Law Developments in 2025
In summary, New Jersey’s 2025 employment-related measures included the following:
- Artificial Intelligence: On January 9, 2025, New Jersey Attorney General Matthew J. Platkin and the New Jersey Division on Civil Rights issued guidance to clarify the New Jersey Law Against Discrimination’s (NJLAD) application to algorithmic discrimination resulting from data-driven technologies such as artificial intelligence (AI). The guidance explains that, while AI may be new to society, the NJLAD applies to algorithmic discrimination the same way it applies to other discriminatory conduct. The guidance outlines (1) the definition of an “automated decision-making tool,” (2) how such tools can contribute to discriminatory outcomes, and (3) the NJLAD’s application to these automated discriminatory outcomes.
- Commissions as Wages: On March 17, 2025, the New Jersey Supreme Court ruled in Musker v. Suuchi that commissions qualify as wages under the New Jersey Wage Payment Law (WPL) and are therefore protected by the WPL. The court distinguished between “supplementary incentives” and “wages,” holding that supplementary incentives are forms of compensation given for performing something beyond an employee’s required “labor or services,” while wages are earnings directly tied to the “labor or services” an employee is obligated to perform. As a result, commissions earned for an employee’s “labor or services” always constitute wages under the WPL and cannot be excluded as “supplementary incentives.” For further analysis on the decision, please see our prior article here.
- Captive Audience Bans: On December 2, 2025, an amendment to the New Jersey Worker Freedom from Employer Intimidation Act (NJWFEIA) went into effect, expanding New Jersey’s “captive audience” ban. The NJWFEIA generally prohibits employers from requiring employees to attend meetings or participate in any communications with an employer or its representatives for the purpose of communicating the employer’s opinion about religious or political matters. The amended law now expressly incorporates labor organizations and activities in the definition of “political matters” and protects an employee’s decision to join or support a labor organization or association. The amendment also requires employers to post a new notice of employee rights under the law and expands the forms of relief available under the law’s private right of action.
- Pay Transparency: On June 1, 2025, the New Jersey Pay Transparency Act went into effect, requiring employers to include the range of hourly wage or salary when advertising open positions. On September 15, 2025, the New Jersey Department of Labor and Workforce Development (NJDOL) published proposed rules that, if approved, will clarify when employers need to disclose wage or salary information in job postings and notify current employees of promotion opportunities. In the meantime, as the state’s guidance page explains, the proposed new rules are instructive but non-binding unless and until they are formally adopted. The comment period closed on November 14, 2025, and the final rules have not been published.
- Minimum Wage: As we previously reported, a scheduled change to the state’s minimum wage will raise the rate to $15.92 per hour for most employees as of January 1, 2026.
Pending Legislation That Could Shape 2026
As 2026 approaches, there are two legislative developments worth monitoring:
- ABC Test: The fate of proposed rules aimed at preventing employee misclassification remains uncertain as the new year approaches, following lawmakers’ December action challenging the regulatory changes. On May 5, 2025, NJDOL proposed new regulations to codify the application of the statutory “ABC test” for determining independent contractor status across various state laws, including the Unemployment Compensation Law, Temporary Disability Benefits Law, Wage and Hour Law, WPL, and Earned Sick Leave Law. NJDOL’s proposed regulations were in direct response to the New Jersey Supreme Court’s decision in East Bay Drywall, LLC v. Dep’t of Labor and Workforce Development, which suggested that the state clarify the test, especially in the context of remote work. However, on December 8, 2025, the New Jersey Legislature introduced Assembly Concurrent Resolution 177 (ACR177), asserting that NJDOL’s proposed regulations conflict with legislative intent and should be amended or withdrawn.
- Noncompetes: On May 22, 2025, the New Jersey Legislature introduced S4385/A5708, a comprehensive proposal that, if enacted, would significantly limit the enforceability of noncompete agreements and ban no-poach agreements in New Jersey. The bill would render most existing “non-compete clauses” with a worker who is not a “senior executive” unenforceable, and after the effective date, it would prohibit an employer from seeking or requiring a worker who is not a senior executive to execute a noncompete. In addition to restricting noncompetes, the bill explicitly declares no-poach agreements to be contrary to public policy and that “any no-poach agreement shall be void.” The proposed legislation was recently referred to the Assembly Regulated Professions Committee, where it remains pending. Please see our previous blog post for a more detailed summary of the bill, as introduced.
Satisfying Notice and Posting Requirements
New Jersey mandates that employers display a variety of official posters informing employees of the law relating to employee rights and employer responsibilities. Failure to comply with these requirements may result in monetary fines and other penalties. Generally, to ensure compliance, an employer must post the most recent version of the mandated posters in a conspicuous location, i.e., one accessible and easily visible to all employees and applicants for employment, such as in a lunchroom, breakroom, or human resources office. Employers operating in New Jersey must also distribute certain notices to employees. In addition, for some laws, employers must post and/or distribute the notice in English, Spanish, and any language spoken by at least 10 percent of the employer’s workforce.
As a reminder, New Jersey Division on Civil Rights (NJDCR) rules allow New Jersey employers with internet and intranet sites used by their employees to satisfy their display obligations by posting the NJLAD and New Jersey Family Leave Act (NJFLA) posters on those sites instead of in the physical worksite. Except as noted below, NJDOL regulations still do not expressly permit electronic posting. Further, employers should recall that in 2020, the U.S. Department of Labor (USDOL) issued guidance encouraging employers to supplement required hard-copy postings with electronic postings continuously accessible to employees. (For more information on how to comply with the USDOL notice and posting requirements, see our blog post.) Although the USDOL guidance applies only to federal notice and posting requirements, considering the NJDCR rules described above and the laws’ intent to make notices easily accessible to employees, we continue to recommend electronic posting as a best practice for all state-mandated notices, in addition to hard-copy posting in “brick and mortar” locations, if any, when required.
Downloading Mandatory Notices and Posters
NJDOL provides employers with poster packets containing the required notices, which are available for download here.
Posters required by the NJDCR are available for download here.
Note that, although some of the regulations specify that the notices must be on legal-size paper (8.5 x 14”), the posters from the state’s website printout are letter-size (8.5 x 11”) and considered compliant.
In 2026, New Jersey requires private employers to display—and, in some cases, distribute—the following posters and notices to their New Jersey employees:
In addition to the above, New Jersey has posting requirements aimed at specific sectors of the labor force. For example, New Jersey employers associated with the sale, rental, or lease of properties must advise of the NJLAD in housing. Employers that provide services to the public—including restaurants, hotels, hospitals, movie theaters, and shopping centers—must advise patrons of the NJLAD in public accommodations. These businesses should display posters in areas readily accessible to the public (for example, near cash registers). Those posters are available for download here. Health care facilities must post notices apprising employees of mandatory overtime restrictions. A copy of the notice is available here.
Employers should also remember to similarly comply with posting requirements under federal law. Workplace posters from the USDOL are available for download here.
Employers may meet many of their posting obligations by purchasing New Jersey and federal “all-in-one” posters from a reputable supplier and subscribing for updates.
What New Jersey Employers Should Do Now
- Review your organization’s use of automated decision-making tools to ensure it complies with the NJLAD.
- Make sure commissions related to labor or services are properly classified and paid as wages.
- Review all policies and procedures to be certain that your organization does not require employees to attend meetings regarding “political matters,” which now includes labor organizations and activities.
- Review applicable job postings and the procedures for notifying current New Jersey employees of promotion opportunities for compliance with the latest NJDOL pay transparency guidance—and stay tuned for final rules.
- Monitor the New Jersey Legislature’s ACR177, which may require NJDOL to withdraw its “ABC test” proposed regulations.
- Monitor the New Jersey Legislature’s noncompete bill, which, if approved, may require your organization to reassess its noncompete and no-poach agreements.
- Review all posting and notice requirements applicable to your organization and update as needed to ensure compliance with current law.
- Keep or take a photo of the posters/notices that are being replaced to maintain a historical record of compliance.
- Review your organization’s new hire materials to be certain that they include the required notices.
- If distributing required notices by email, require employees’ written acknowledgment of receipt.
- Consider subscribing to a reputable supplier of federal and state notices.
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Staff Attorney Elizabeth A. Ledkovsky helped prepare this Insight.
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