Summary of July 2026 Labor Law Updates for Paterson, New Jersey
July brought several important developments in New Jersey labor and employment law, including a major expansion of job-protected leave and significant state enforcement actions involving worker misclassification, overtime pay, and wage violations. This July 2026 employment update from HKM Employment Attorneys highlights the developments employees, HR professionals, and compliance leaders should know about.
At-a-Glance Overview
- Expanded job-protected leave took effect July 17, substantially broadening coverage under the New Jersey Family Leave Act and adding job protections for many workers receiving Temporary Disability Insurance or Family Leave Insurance benefits.
- New Jersey reached a $2.775 million settlement with STG Logistics and related companies over allegations that hundreds of truck drivers were improperly classified as independent contractors.
- Two related janitorial companies agreed to a $457,500 settlement after state investigators alleged a paycheck-splitting scheme designed to avoid overtime obligations.
- The state added 18 employers to its Workplace Accountability in Labor List, while announcing that the program has now helped recover more than $1 million in outstanding wage, benefit, and tax liabilities.
- The New Jersey Department of Labor highlighted heat-safety obligations and recommendations for public employers as extreme summer temperatures increased risks for outdoor workers.
July 2026 brought substantial changes to New Jersey labor law, particularly through the expansion of job-protected leave and continued aggressive enforcement of wage-and-hour and worker-classification requirements. Employees who believe their workplace rights have been violated, or employers seeking guidance on compliance with these changing requirements, can contact HKM Employment Attorneys at https://hkm.com for assistance.
New Jersey Expands Job-Protected Family and Medical Leave — Legislation
Date: July 17, 2026
Summary:
Major changes to New Jersey’s leave laws took effect on July 17, significantly increasing the number of workers entitled to job protection while taking time away from work.
Under the amended New Jersey Family Leave Act (NJFLA), the law now applies to employers with 15 or more employees worldwide, down from the previous threshold of 30 employees. Employees also become eligible much sooner: the employment requirement dropped from 12 months to three months, while the hours-worked requirement fell from 1,000 hours during the preceding year to 250 hours. Eligible employees continue to have access to up to 12 weeks of protected leave during a 24-month period to bond with a new child or care for a family member with a serious health condition.
The changes also provide job protection to many workers receiving New Jersey Temporary Disability Insurance (TDI) or Family Leave Insurance (FLI) benefits when their leave is not already protected by the NJFLA or federal Family and Medical Leave Act. For this protection, there is no minimum employer-size or work-history requirement; eligibility for TDI and FLI benefits remains based on the worker’s recent earnings.
Implications:
This is one of the most consequential recent changes to New Jersey workplace rights. Employees at smaller businesses, recently hired workers, and some part-time employees may now receive job protections that previously did not apply to them. Employers should review their leave policies, eligibility procedures, employee notices, and return-to-work practices to ensure they reflect the expanded requirements.
STG Logistics Reaches $2.775 Million Worker-Misclassification Settlement — Enforcement Action
Date: July 29, 2026
Summary:
The New Jersey Attorney General and Department of Labor and Workforce Development (NJDOL) announced a settlement with STG Logistics, Inc., STG Drayage, LLC, and related companies resolving allegations that hundreds of truck drivers were unlawfully classified as independent contractors. The case was the first lawsuit brought under a 2021 New Jersey law authorizing the state to pursue worker-misclassification claims in Superior Court.
The settlement provides at least $2.775 million, including $2.22 million for truck drivers, primarily for alleged wage-and-hour violations, and $555,000 for state wage-and-hour penalties and contributions to unemployment and disability funds. The agreement also provides for an additional $7.5 million in penalties if STG violates its terms.
State investigators alleged that drivers were treated as contractors despite substantial company control over their work. According to NJDOL, the companies assigned routes, monitored deliveries, set pay rates, required GPS tracking, and restricted drivers’ ability to use their trucks for other work. The state also alleged violations involving minimum wages, unlawful deductions, earned sick leave, recordkeeping, workers’ compensation insurance, and required contributions to state benefit programs.
Implications:
The settlement underscores New Jersey’s aggressive approach to independent-contractor classification. Under the state’s ABC test, workers are presumed to be employees unless the employer can satisfy all three parts of the test. Businesses relying on contractors—particularly in transportation, construction, delivery, and other industries with significant employer control—should carefully review their classifications. Workers who have been labeled independent contractors may also have claims for wages, overtime, benefits, or other protections if the classification does not comply with New Jersey labor law.
Janitorial Companies Settle Overtime and Travel-Time Claims for $457,500 — Wage and Hour Enforcement
Date: July 16, 2026
Summary:
NJDOL and the New Jersey Attorney General announced a $457,500 settlement with Affordable Quality Cleaning LLC and Affordable Quality Property Management Corp. over alleged violations of state wage-and-hour laws. The companies agreed to provide $357,500 to 68 workers for unpaid overtime and compensable travel time and pay another $100,000 in fines and penalties.
Investigators alleged that the companies used a “paycheck-splitting” arrangement in which employees’ hours were divided between two related businesses. For example, an employee who performed 50 hours of cleaning work could receive separate checks showing 25 hours from each company, allowing the businesses to avoid paying the overtime premium for hours exceeding 40 in a workweek. The state also found that employees were not properly compensated for certain travel between cleaning sites during the workday.
An administrative law judge had previously determined that the businesses operated as joint employers and that NJDOL had established several of its wage-and-hour claims. The settlement requires the companies to properly compensate travel time in the future and maintain legally required payroll and time records.
Implications:
New Jersey employers generally cannot avoid overtime obligations by dividing an employee’s hours among related entities that jointly employ the worker. The case also serves as a reminder that travel occurring between work locations during an employee’s workday can constitute compensable working time. Employees who work for related businesses or travel among multiple job sites should review whether all of their hours are being counted and paid correctly.
New Jersey’s Workplace Accountability List Surpasses $1 Million in Recoveries — Labor Enforcement
Date: July 10, 2026
Summary:
NJDOL announced that its Workplace Accountability in Labor List, commonly known as The WALL, has helped recover more than $1 million in outstanding liabilities since the program began three years ago. The department added another 18 businesses in July, bringing the number of employers listed for unresolved wage, benefit, or tax violations to 389.
Businesses placed on The WALL are publicly identified because of outstanding liabilities stemming from violations of state wage, benefit, or tax laws. By July 2026, NJDOL reported recovering approximately $1.007 million from businesses that had either been listed or warned that they could be listed unless their liabilities were resolved.
Implications:
The milestone illustrates New Jersey’s increasing use of public disclosure and other enforcement mechanisms to collect unpaid wages and penalties. Employers should address state labor-law findings promptly rather than allowing liabilities to remain unresolved. Employees may also benefit from the program’s additional pressure on businesses to satisfy unpaid wage and benefit obligations.
NJDOL Issues Heat-Safety Guidance for Public-Sector Workplaces — Agency Guidance
Date: July 2, 2026
Summary:
During an early-summer heat wave, NJDOL called attention to workplace precautions designed to prevent heat illness among public employees. The department’s Public Employees Occupational Safety and Health program highlighted risks facing firefighters, sanitation employees, public works crews, public-safety trainees and instructors, and others working in high-temperature environments.
The agency’s guidance emphasizes recognizing heat hazards and taking preventive measures before workers develop heat-related illnesses. The July announcement was aimed specifically at public-sector workplaces covered by New Jersey’s PEOSH program.
Implications:
Extreme heat can create serious workplace-safety risks, particularly for employees performing strenuous outdoor or high-temperature work. New Jersey public employers should ensure that supervisors and employees understand heat hazards and appropriate prevention measures. Private-sector employers should likewise remain attentive to applicable federal OSHA requirements and guidance governing heat-related workplace hazards.
Conclusion: Looking Back on New Jersey’s Labor Law Updates from July 2026
Employees across Paterson and North Jersey face workplace issues ranging from wrongful termination and employment discrimination to unpaid wages, retaliation, and disputes over employment agreements. At HKM Employment Attorneys in Paterson, attorney Marcela Jimenez Rodriguez helps employees understand their rights and evaluate their options under New Jersey and federal employment laws. The Paterson office also represents workers in matters involving wage and overtime claims, whistleblower retaliation, and employment contracts. If recent legal developments raise questions about your own workplace situation, contact HKM’s Paterson office to discuss your rights and the options available to you.
