Must My Company In New Jersey Keep Its Employee Records Within The State?

Yes.   A company located in New Jersey must keep its employees’ personnel files within the State of New Jersey.  This is the case for at least two reasons.

First, the New Jersey State Wage and Hour Law, N.J.S.A. §§ 34:11-56a – 34:11-56a38, requires an employer to maintain true and accurate records of the name and address of each employee, the employee’s birth date if the employee is under the age of 18, the hours worked each day and each workweek, and the wages paid, including the regular hourly wage, gross to net amounts paid with itemized deductions, and the basis upon which wages are paid.  N.J.S.A. § 34:11-56a20; N.J.A.C. § 12:56-4.1.

These wage and hour records must be kept at the place of employment or in a central office in New Jersey, except in unusual circumstances where it is not feasible to keep records in the State and an exception is obtained from the New Jersey Commissioner of Labor.   N.J.A.C. § 12:56-4.5(a), (b).

Second, under the New Jersey Temporary Disability Benefits Law (the “TDB Law”), N.J.S.A. §§ 43:21-25 – 43:21-56, employers (other than governmental entities or nonprofit organizations) are automatically included in a state plan which provides temporary disability benefits to the employers’ workers.   Under the TDB Law, an employer must maintain accurate employment records and make them available for inspection by the New Jersey Department of Labor’s Division of Temporary Disability Insurance (the “Division”) or the Division’s authorized representative during ordinary business hours.  N.J.S.A. § 43:21-52(a).

In sum, both the New Jersey State Wage and Hour Law and the New Jersey Temporary Disability Law require a business situated in New Jersey to maintain, within the State of New Jersey, the records of the business’s employees.

If your company needs assistance or guidance on a labor or employment law issue and your company is located in the New Jersey area, call Attorney David S. Rich at (347) 941-0760.