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Employees accrue 1 hour of earned sick leave for every 30 hours worked, up to a maximum of 40 hours of leave per benefit year. An employee can work additional hours to compensate for work missed rather than use earned sick leave, with the employer's consent.
The New Jersey Wage Payment law requires that employers pay the full amount of wages due to their employees on regular paydays. Wages are defined by the law as the direct monetary compensation for labor or services rendered by an employee, which includes sales commissions.
Employers who separate NJ Earned Sick Leave from their PTO policy can require employees to take PTO before claiming Temporary Disability Insurance benefits. Employers cannot require them to take time accrued under the NJ Earned Sick Leave law. Some employers use their PTO policy to follow the NJ Earned Sick Leave law.
Accrued but unused vacation time is not considered wages. In New Jersey, the laws regarding wages do not consider accrued and unused vacation as wages and do not have any regulations regarding the accrual or carrying over of vacation from one year to the next.
Vacation pay does not impact an employee's eligibility for SDI benefits. When determining SDI eligibility, PTO payments are considered the same as sick-leave payments when employees are able to use PTO benefits for absences due to sickness or disability.