New Jersey Telecommuting laws & HR compliance analysis

New Jersey Telecommuting: What you need to know

The New Jersey Department of Transportation's Smart Moves program for employers has a telecommuting webpage that outlines the benefits of telecommuting programs and how employers can begin a program. The state encourages telecommuting to reduce traffic, improve balance between work and family issues, and give opportunity to those with mobility issues and other disabilities. Go to http://www.state.nj.us/transportation.
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Employers in New Jersey of all sizes must provide full-time, part-time, and temporary employees with up to 40 hours of earned sick leave annually so that they can care for themselves or a loved one. More information may be found at the New Jersey rest periods section.
In 2010, the Tax Court of New Jersey ruled that an out-of-state company with a telecommuter residing and working out of the state was "doing business" in New Jersey and, thus, was subject to the New Jersey Corporation Business Tax Act (Telebright Corporation, Inc. v. Director, Division of Taxation, (New Jersey Tax Court, No. 011066-2008, March 24, 2010)). The Tax Court cited the company's consistent contact with the employee and the employee's use of a company-owned computer as being sufficient to trigger a taxable presence in the state, requiring the payment of state income tax under state law (N.J. Admin. Code § 18:7-1.9(b)). The state has applied different standards under certain circumstances. Employers should consult a local attorney to determine their tax obligations for a worker located in New Jersey.
The New Jersey Opportunity to Compete Act bans the box on job applications that requires applicants to disclose criminal history information. Under the law, employers ...

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