Brigette N. Eagan

Do you have an HR checklist when separating employees? Add one more item: mandatory reporting to the State of New Jersey on all employee separation. Genova Burns LLC Partner Brigette N. Eagan, Esq., breaks down what employers need to know in this week’s HR Tip.

As HR professionals know, a little humility and a dose of workplace reality are key ingredients for effective anti-harassment training. This week’s HR Tip looks at how relatable examples can make required training meaningful and impactful

If the NJDOL reviewed your independent contractor relationships tomorrow, what would it find? With new regulations taking effect on October 1, this question is as important as ever for NJ employers. My HR Tip of the Week discusses what to expect come October 1, and HR strategies to take before the October 1 deadline.

LEGAL DEVELOPMENT: Regulations from the New Jersey Department of Labor (NJDOL) clarifying the ABC test for determining if an individual is a W-2 employee or 1099 independent contractor are effective as of October 1.

With two weeks left to comply, this TIP forecasts what’s in store for HR and NJ employers.

1. Under the regulations, more individuals will be classified as employees rather than independent contractors. In fact, the NJDOL’s test starts with the presumption that individuals are employees, unless proven otherwise.
2. The NJDOL will aggressively audit employers for compliance. If you have ever been subject to a NJDOL audit, you know that the information requests are expansive. These audits may cast a broader net to identify patterns of misclassification in your workforce.
3. With the potential for hefty backpay and penalty awards (plus the possibility of an additional 5% award based on the individual’s gross wages for the last 12 months), employers can expect an uptick in these types of administrative actions.

HR TIP: Is your workforce in compliance? If you don’t know the answer to this question, you’ve got two weeks to work towards compliance. The first step is to identify which individuals are paid on a 1099. The next step is to determine whether your company can overcome the presumption that these individuals are employees. If your company can’t pass the test, it’s time to develop a plan for compliance, before an NJDOL investigator appears for an audit.

From performance reviews and job descriptions to pay transparency compliance, staffing needs, employee handbooks and workplace culture, now is the time to identify any outstanding issues and develop a plan for closing out the year.

Performance reviews:

• Provide refresher training to managers on what (and what not) to include in performance reviews. Objectively identify and deal with persistent, documented performance issues from the year.
• Confirm that managers have sufficient documentation to support their reviews.
• Audit for pay equity in salary increases and bonuses resulting from those reviews.
• To avoid employees from feeling “stuck” and to build retention and a positive culture, use reviews to identify
• areas of career growth.

Job Descriptions: When reviewing performance, managers should update job descriptions to accurately reflect duties.

Promotional opportunities: Review pay transparency laws in the states where you operate. Ensure compliance with job and salary range posting requirements.

Headcount and Productivity: Evaluate whether revenue, demand, technology, and business needs align with headcount.

Employee Handbook Update: Review whether the handbook includes updates for all new laws and company practices. It’s a great time to analyze whether the handbook is comprehensive, too technical, or has gaps.

Culture: Are people happy at work? Look at retention, morale, and benefits.