Three New Jersey Towns Pass Paid Sick Leave Ordinances

Within the past few weeks, three New Jersey towns – Passaic, Paterson and East Orange – passed paid sick leave ordinances.  Under these laws, private employers are required to provide paid sick leave to their employees who work a minimum number of hours per year within the city. 

Under all three ordinances, employers with 10 or more employees are required to provide at least 40 hours of paid sick leave per year to their employees.  Employers with fewer than 10 employees are required to provide at least 24 hours of paid sick leave per year.  The ordinances have a special exception for employees who are child care workers, home health workers and food service workers, as they are permitted to accrue up to 40 hours of paid sick leave per year, even if the employer has fewer than 10 employees.

Passaic, Paterson and East Orange employees earn one hour of sick time for every 30 hours worked, up to 40 hours per year.  The ordinances permit employees to use paid sick time to care for themselves, their spouse or civil union partner, children, siblings, parents, grandparents and grandchildren.  Employers are required to provide written notice to their employees of their rights under the law, and they must post information about the ordinance at their place of business.

All of these paid sick leave ordinances go into effect in January 2015.  Currently, there is state legislation pending that would mandate paid sick leave for all employees within New Jersey.  The bill is still being contemplated by the legislature.  Please contact Connell Foley’s labor and employment law attorneys for guidance on addressing these new paid sick leave ordinances.

NJ Appellate Division Upholds Employment Application Truncating Statute of Limitations

On June 19, 2014, in Rodriguez v. Raymours Furniture Co., 436 N.J. Super. 305 (App. Div. 2014), the New Jersey Appellate Division held that a contractual provision contained in an employment application that shortens the statute of limitations applicable to claims against the employer is enforceable.

In the case, plaintiff Sergio Rodriguez applied for a position at Raymours Furniture Co., a retail furniture company.  On the application form, immediately above the signature line, there was bold-faced, large print, capitalized language indicating that the applicant was waiving the statute of limitations applicable to claims or lawsuits against the company and, instead, would be required to file any claim within six months of the date of the action.  The plaintiff was hired and, several years later, was laid off during a company-wide reduction in force (“RIF”). 

The plaintiff initiated a lawsuit against Raymours nine months after the RIF.  The trial court granted Raymours’ motion for summary judgment, finding that the plaintiff filed his lawsuit outside of the contractual time period of six months.  The Appellate Division affirmed.  The panel found that the language was clear in its terms, was conspicuously placed on the application, was reasonable, and was not contrary to any public policy.

In light of this opinion, employers may want to consider including a statute of limitations waiver in their employment applications.  For assistance in drafting this language or other employment policies, please contact Connell Foley’s labor and employment law attorneys.

Draft Affordable Care Act Forms and Instructions Released

The IRS recently released draft forms and instructions for employers to review in connection with the Affordable Care Act (“ACA”) employer mandate.  These forms are merely in “draft” form and may change in the future, but they provide insight into the scope of information that likely will be required from employers in the near future.

Beginning in 2016 for the 2015 Plan Year, certain employers must file Forms 1094-C and 1095-C in order to meet their reporting requirements under the statute.  The purpose of the reporting requirement is to notify the government about whether the employer is meeting its health coverage obligations under the ACA.

The ACA requires employers with 50 to 99 “full time equivalent” employees to offer health insurance to all full time employees by January 2016.  Employers with over 100 “full time equivalent” employees must offer health insurance to all full time employees by January 2015.  Employers that fail to meet these requirements are subject to a fine.

Form 1094-C is used to report to the IRS a summary of the information being provided on a Form 1095-C as to each employee.  A copy of the draft Form 1094-C can be found here.  Form 1095-C is used to report information about each employee’s health insurance coverage.  A copy of the draft Form 1095-C can be found here.  A copy of the draft instructions for filling out both forms can be found here.

For more information on the ACA employer mandate, please contact Connell Foley’s labor and employment law attorneys.