A4245

An Act requiring the disclosure of certain wage information to employees and amending P.L.1965, c.173.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. Section 6 of P.L.1965, c.173 (C.34:11-4.6) is amended to read as follows:

6. Every employer shall:

a. Notify his employees at the time of hiring, of the rate of pay, and of the regular payday designated by the employer in accordance with section 2 of [this act] P.L.1965, c.173 (C.34:11-4.2).

b. Notify his employees of any changes in the pay rates or pay days prior to the time of such changes.

c. Furnish each employee with a statement of [deductions made from his wages in accordance with section 4 of this act] earnings for each pay period [such deductions are made]. This statement, to be furnished by every employer, including public employers, shall include:

(1) the employee’s gross wages;

(2) the employee’s net wages;

(3) the employee’s rate of pay;

(4) if relevant to the wage calculation, the number of hours worked by the employee during the pay period; and

(5) any deductions made from the employee’s wages in accordance with section 4 of P.L.1965, c.173 (C.34:11-4.4).

As used in this subsection, “public employers” means the State of New Jersey, or the several counties and municipalities thereof, or any other political subdivision of the State, or a school district, or any special district, or any authority, commission, or board, or any branch or agency of the public service.

d. Keep posted in a place accessible to his employees an abstract of [this act] P.L.1965, c.173 (C.34:11-4.1 et seq.) furnished by the commissioner, and

e. Make such records as to the persons employed by him, including wage and hour records and preserve such records for such periods of time, as the commissioner shall prescribe by regulation as necessary or appropriate for the enforcement of the provisions of [this act] P.L.1965, c.173 (C.34:11-4.1 et seq.), provided that records of the number of hours worked shall not be required as to any person employed in a bona fide executive, administrative or professional capacity or in the capacity of outside salesman 18 years of age or older where the wages of such person or persons are not determined by the number of hours worked.

(cf: P.L.1965, c.173, s.6)

2. This act shall take effect on the 120th day next following enactment.

STATEMENT

This bill requires all employers, public and private, to provide each employee with a statement of earnings which shall include information regarding the employee’s wage calculation.

“Public employer” is defined in the bill as the State of New Jersey, or the several counties and municipalities thereof, or any other political subdivision of the State, or a school district, or any special district, or any authority, commission, or board, or any branch or agency of the public service.

Current law requires private employers to furnish each employee with a statement of all deductions made from the employee’s wages for each pay period in which deductions were made. This bill expands that obligation by requiring that all employers, public and private, provide employees with a statement of earnings for each pay period to include, in addition to any deductions made, the following information:

· the employee’s gross earnings;

· the employee’s net earnings;

· the employee’s rate of pay; and

· the number of hours worked by the employee during the pay period, if relevant to the employee’s wage calculation.

By requiring the disclosure of this information, employees will have the ability to determine whether their wages are being properly calculated. This will increase employer accountability and protect employees from intentional or inadvertent wage calculation errors.