The basics:
- NJBIZ panel examines 2026 employment law shifts affecting businesses statewide
- Employers navigate wage hikes, pay transparency, compression concerns
- Family leave expansion widens coverage for small businesses
- Legal, HR leaders discuss hiring slowdowns, layoffs, compliance strategy
As part of the latest NJBIZ virtual discussion, legal and human resources professionals dove into topics related to employment law and compliance in New Jersey.
Moderated by NJBIZ Editor Jeffrey Kanige, the Feb. 25 panel featured:
- Monte Block, CEO of East Brunswick-based staffing and recruiting agency Equiliem
- Brigette Eagan, partner and employment law advisor at Genova Burns LLC in Newark
- Mariya Gonor, co-chair of Bridgewater-headquartered Norris McLaughlin PA’s executive compensation and employment strategics group
- David Pearson, chief human resources officer at Iselin human resources consulting firm ExtensisHR
During the 90-minute roundtable discussion, panelists addressed 2026 law updates related to wages, pay transparency, leave and posting requirements. They also spoke about the debate over hybrid, remote and office-based work models; as well as how employers are handling the topic of diversity, equity and inclusion.
A more detailed recap of the panel will appear in the March 2 issue of NJBIZ.
Market swings
After the pandemic and the Great Resignation, workers had the upper hand. With employees seeking higher pay, increased benefits and more perks, companies tried to meet those demands in order to attract and retain the best possible workforce.
But now the tide has turned. Hiring is slowing, layoffs are rising and companies are back in the driver’s seat — leaving employees more cautious about switching jobs and negotiating raises.
“I think there are a couple of big challenges here. That conversation connects to what people have been talking about,” Pearson said, “What I’m seeing from my client base, who really is predominantly small to medium sized businesses, is that they’re having to pick and choose what makes the most sense. So, are they eroding points of their benefit program? Are they amplifying their compensation program? Pay transparency is pretty significant, but if there’s compression within the organization, that’s where they’re starting to say, ‘OK, what do we need to do from a layoff standpoint?’”
He continued, “We are seeing some of the organizations that are hyper-focused on it, and then other folks are saying, ‘We are going to stay flat and invest heavily in technology because that’s where this catch-up is going to be.’”
Minimum knowledge
In 2019, the state began steadily raising its minimum wage with incremental increases to hit $15 per hour by 2024. After reaching that threshold, the rate now adjusts based on the consumer price index.
As of Jan. 1, 2026, the minimum wage is $15.92 for most employees. Separate phase-ins continue for seasonal workers and agricultural workers, with starting wages set at $15.23 and $14.20, respectively.
Panelists urged employers to read up on those changes to plan for ongoing annual adjustments. They also noted that many clients have said they weren’t even aware of the latest rate revisions.
Replay: Employment Law & Compliance Panel Discussion
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Gonor said, “Anyone in business should understand that employment law is just such a rapidly changing environment – especially in New Jersey and New York … You have to be on top of it and remember to just periodically check in, because what was true last year may no longer be true a month from now.”
Block stressed, “You’ve got to be involved in your business. You’ve got to be involved with your law firms, your accounting firms, your insurance firms. You got to be part of the decision-making process on a weekly basis.”
Getting more transparent
Effective June 2025, New Jersey’s Pay and Benefit Transparency Act requires most employers with 10 or more employees to include specific wage or salary ranges and a general description of benefits in all job and internal transfer postings. The law also mandates those companies to keep current staff in the loop about promotion opportunities before decisions are made.
That has meant a major shift toward openness in hiring and career advancement practices.
Pearson said, “I think a big part of it too is pay equity. So as long as organizations are doing pay equity assessments on a regular basis, it’s a little bit more comfortable with these postings.”
He continued, “What it does, too, is opens employers’ eyes to pay compression. So, if they have somebody that’s been enrolled for 20 years, their rate may not be exactly what the floor of that range is, and they have an obligation to start to dive deeper into their pay philosophy.”
Family time
Under recently signed legislation, the state significantly expanded the New Jersey Family Leave Act to boost job-protected leave access to hundreds of thousands more workers statewide.
The law that takes effect July 17, lowers the employer threshold from 30 to 15 workers, and eventually down to five by 2028. It cuts employee eligibility to three months’ tenure and 250 hours worked. Additionally, the measure strengthens reinstatement rights for employees who take temporary disability insurance or family leave insurance, as well as requires employers let those workers return to equivalent roles.
Eagan described it as “a game changer.”
“What I tell my employers right now, especially my small ones, is ‘How are you going to staff it? Do you need to cross train? Do you start need to working with agencies on when somebody will get those 12 weeks of leave? … How are you going to pay for staffing? How are you going to pay for a temporary replacement?’
“So, we are strategically trying to prepare,” she said.
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