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Updated on January 27th, 2023
A New Jersey employment contract allows employers to enter into an agreement with an employee that establishes the terms and conditions of their working relationship. Although an employment contract isn’t required by state law, a new hire will be considered “at-will” by default in the absence of a written agreement.
By executing an agreement, both signatories are given the security of knowing the other party is legally obligated to uphold their end of the contract. The completed contract will include the employee’s duties, obligations, wages, benefits, and employment duration. The employer may also include terms that prohibit the employee from disclosing proprietary information and directly competing with the employer’s business.
Contents |
Types (2)
Independent Contractor Agreement – Allows an independent contractor to enter into a binding work agreement with their client.
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Subcontractor Agreement – Allows a subcontractor to enter into a binding work agreement with an independent contractor.
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Laws
- Labor Statutes: Title 34 (Labor and Workmen’s Compensation)
- Definition of Employee: § 43:21-19(i)(6)
- Minimum Wage: $14.13/hr (§ 34:11-56a4(a), Dept. of Labor and Workforce Development)
- Overtime: Most employees must earn one and a half (1.5) times the regular hourly pay after forty (40) hours worked (§ 34:11-56a4(b)).
- Record Keeping: Employers must maintain records of all their employees that include their names, wages, and hours worked. Records must be kept for at least five (5) years (§ 34:11-4.6(e), § 34:11-56a20, § 34:11D-6).
At-Will Employment
Permitted? Yes, New Jersey law allows employers to terminate “at-will” employees at any time without notice or cause with the following exceptions:
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