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A New Governor Takes Office: What NJ Employers Can Expect

Governor Phil Murphy—officially in office just two days—has already begun to implement many of the "progressive" policy changes he promised on the campaign trail and transform New Jersey into the "California of the East." On January 16, just hours after being sworn in, the new governor took the first step in making his policy platform reality when he signed an Executive Order prohibiting public employers from inquiring into the wage history of job applicants before making an offer of employment that includes a compensation package.

This Order, effective February 1, aims to address gender pay inequity—one of 29 issues expressly articulated on Gov. Murphy's campaign website. Of these, almost half deal with issues involving the economy or labor and employment. With Democrats in control of the statehouse and the legislature, New Jersey businesses are likely to see major changes in state labor and employment law and related policies soon.

Gov. Murphy has made economic reform his "central focus." As part of that reform, he has an ambitious labor agenda that includes:

  • Expanding small business incubators to incentivize new businesses—and new employers—to start up in New Jersey
  • Implementing economic and labor measures aimed at growing the middle class:
    • Raising the minimum wage to $15 per hour
    • Mandating paid sick leave
    • Creating a public bank that, among other things, will allow women- and minority-owned businesses increased access to capital
    • Addressing retirement savings through public pension reform and offering an opt-in retirement plan for employees of privately owned small businesses
  • Appointing a cabinet, with a newly created Chief Diversity Officer position, that will publish an annual review of state diversity contracting and procurement law
  • Adding public contract provisions for set-asides for LGBTQ-owned businesses, like the ones that exist for women- and minority-owned businesses

Endorsed by more than 50 organized labor organizations, Gov. Murphy has been consistent in his pro-union policy positions. He intends to engage "the state's unions, employers, and educators to create clear pathways for lifelong learning and good jobs." He also takes the position that any changes to workers' benefits must be made through the collective bargaining process, and he has said that he will "oppose any effort to turn New Jersey into a right-to-work state." Right-to-work laws, which have become popular across the country in recent years, prohibit unions and employers from requiring employees to join or otherwise support a union as a condition of employment.

On top of these specific initiatives, Gov. Murphy has said that he will support: legislation strengthening penalties for wage discrimination; efforts to make striking workers eligible for unemployment benefits after 30 days; and increased access to professional licenses for undocumented immigrants.

Finally, Gov. Murphy has declared that he will sign legislation to legalize recreational use of marijuana. State Senate President Stephen Sweeney has promised to introduce such a bill within the next three months. "Legal" pot could have a significant impact on employer anti-drug policies.

Although Gov. Murphy is only two days into his term, his left-of-center platform takes aim at a variety of issues that will impact the state's employers and employees. 

Copyright © by Ballard Spahr LLP

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About this Author

Louis Chodoff, Labor, Employment, Harassment, Discrimination, Ballard Spahr, Law FIrm
Partner

Louis L. Chodoff handles labor and employment law counseling and litigation associated with harassment, discrimination, wage and hour, whistleblower, wrongful discharge, and restrictive covenant disputes.

Mr. Chodoff litigates in state and federal courts as well as in various administrative agencies such as the New Jersey Department of Labor, New Jersey Division on Civil Rights, New Jersey Office of Administrative Law, Pennsylvania Human Relations Commission, and the Equal Employment Opportunity Commission. He counsels his clients on the employment and labor law implications of...

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Denise Keyser Employment Law Attorney Ballard Spahr
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Denise M. Keyser has more than 30 years of experience representing national, regional, and locally based businesses in labor and employment matters, including traditional labor law (such as collective bargaining and arbitrations), OSHA, ERISA, wage and hour, employment-at-will, wrongful discharge, discrimination, management training, executive compensation, and affirmative action.

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Patricia Smith, Ballard Spahr Law Firm, New Jersey, Labor and Employment Litigation Attorney
Partner

Patricia A. Smith represents management in all areas of employment and labor law and litigation. She has experience in a variety of industries, including health care, transportation, refining, manufacturing, construction, and commercial lending. Ms. Smith regularly provides advice and counseling to employers concerning the implementation of reductions in force and other difficult employment decisions. She also practices traditional labor law and regularly handles labor arbitrations, union organizing campaigns, collective bargaining negotiations, and unfair labor practice...

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Sade Calin, Ballard Spahr Law Firm, New Jersey, Litigation Attorney
Associate

Sadé Calin is a member of the Litigation Department. Her experience includes the handling of labor and employment disputes, including discrimination cases, and serving as a court-trained mediator in landlord-tenant and municipal cases in Camden County, New Jersey. Before joining the firm full time, Ms. Calin was a summer associate at Ballard Spahr. She assisted with a variety of research projects, helped author chapters focused on at-will employment and attorney's fees in discrimination cases for the Employment Litigation in New Jersey treatise, and played a significant...

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