Employment Contract requirements in New Jersey
- Identify whether the worker is an employee or an independent contractor (the IRS and NJ Department of Labor use different tests)
- Include all essential terms: job duties, compensation, benefits, work schedule, and duration (if not at-will)
- For employment contracts, ensure they comply with New Jersey's at-will employment presumption (unless a contract states otherwise)
- If the contract includes a non-compete clause, be aware of New Jersey's strict rules (must be reasonable in duration and scope)
- For freelance contracts, consider New Jersey's Freelance Worker Protection Act (if applicable) – which requires written contracts for certain freelance workers
- For independent contractor agreements, include precise language to avoid misclassification risks
How to create a Employment Contract in New Jersey
- Draft or obtain a written employment contract that clearly states the nature of the relationship (employee vs. independent contractor)
- Include payment terms, deadlines, and invoicing procedures if it's a freelance or independent contractor agreement
- Specify termination conditions and notice requirements, remembering that most NJ employees are at-will
- Review any restrictive covenants (non-compete, non-solicit) to ensure they are reasonable and necessary
- Sign the contract – while notarization isn't required for most contracts, it can provide extra legal authenticity
- Keep a signed copy for your records; both parties should retain one
What a Employment Contract typically costs
The cost of creating an employment contract in New Jersey varies. Using online templates can cost as little as $50 to $100, while hiring an employment attorney may range from $200 to $500 per hour. Fixed legal fees for contract drafting might be $500 to $1,500 depending on complexity.
Need a customized employment contract? Consult a New Jersey employment attorney to ensure your agreement is legally sound and tailored to your needs.
Create your employment contractBefore You Draft an NJ Employment Contract
Prepare the essentials and understand New Jersey-specific considerations before writing your employment contract to avoid costly mistakes.
- Verify the worker's classification: employee vs. independent contractor under New Jersey law, as misclassification can lead to penalties and back taxes.
- Gather key terms: job title, duties, compensation, work schedule, benefits, and any restrictive covenants (non-compete, non-solicit) that comply with NJ law.
- Check if the contract must be in writing: NJ's Statute of Frauds often requires written agreements for terms lasting over one year or involving certain commission arrangements.
- Ensure the contract includes required NJ notices, such as the New Jersey Earned Sick Leave notice and the state's pay transparency requirements for job postings.
- Review non-compete and non-disclosure provisions carefully: NJ courts scrutinize them, and there are specific legal requirements for enforceability.
- Have both parties sign and date the contract, and consider having it notarized if it involves a waiver of rights or a long-term commitment, though notarization is not typically required.
Frequently asked questions
Can an employer change an employment contract in New Jersey?
In New Jersey, employment is generally at-will, meaning either party can change the terms with notice, but changes to an existing contract may require mutual consent. If you have a written contract that specifies a duration, the employer must adhere to those terms. For any changes, it's best to get written agreement.
Do I need a written contract for a freelance job in New Jersey?
Under New Jersey's Freelance Worker Protection Act, if you are a freelance worker earning at least $2,500 per year from a client (or $5,000 from all clients), you must have a written contract. This law provides protections like prompt payment, so it's wise to have one.
Are non-compete agreements enforceable in New Jersey?
New Jersey does allow non-compete agreements, but they are strictly scrutinized. They must be reasonable in duration, geographic scope, and protect a legitimate business interest. They cannot be overly broad or impose undue hardship on the employee.