The Retirement Program You Didn’t Know You Needed—Until Now

Imagine this: You’re at a family barbecue, finally relaxing, when your cousin—let’s call him Dave—leans over and says, “So, how’s your retirement plan going?” You laugh it off, thinking, “Retirement? I’ve got enough on my plate just running the business!” But then Dave mentions the New Jersey Retire Ready Program, and suddenly, you realize this isn’t just another thing to push to the bottom of your to-do list. It’s time to get serious about helping your employees save for their future and ensuring your business complies with the latest regulations.

If you’ve been hearing buzz about the New Jersey Retire Ready Program and aren’t quite sure what it means for you, you’re in the right place. This guide breaks it down in plain English so you can get back to what you do best—running your business.

What Exactly Is the New Jersey Retire Ready Program? (And Why Should You Care?)

The New Jersey Retire Ready Program is the state’s answer to a growing problem: too many employees are retiring without enough savings. Launched in response to this issue, the program mandates that employers offer a state-sponsored retirement savings plan to their employees if they don’t already have one.

Why should this matter to you? Aside from avoiding potential penalties, participating in the program can boost your employees’ morale and loyalty. Plus, it positions your company as one that genuinely cares about its team’s future. Not a bad deal, right?

Is Your Business on the Hook? Find Out if You Need to Participate

Here’s the deal: If you’re an employer in New Jersey with 25 or more employees during the previous calendar year, have been in business for at least two years, and do not currently offer a retirement plan, this program is for you. Smaller companies with fewer employees are off the hook, but as the program expands, that could change. So, even if you don’t have to participate yet, it’s worth keeping an eye on this.

There are a few exceptions, like businesses that already provide a qualified retirement plan, but for most, this requirement is here to stay. If you’re unsure whether your business qualifies, now’s the time to find out.

Deadlines Are Looming: When You Need to Take Action

Don’t let this sneak up on you. The state has set clear deadlines for employers’ compliance with the Retire Ready Program. Depending on your business size, you might need to register as early as this week. Missing these deadlines isn’t just a small slip-up—it could mean fines or other penalties that could easily be avoided.

Here’s a quick rundown of the registration deadlines:

• Employers with 40+ employees must register by September 15, 2024.
• Employers with 25-39 employees must register by November 15, 2024.

Mark your calendar, set reminders, and take action now—future you will thank you.

Step-by-Step: How to Easily Comply with the Retire Ready Program

Feeling overwhelmed? Don’t be. Complying with the Retire Ready Program is more straightforward than it sounds. Here’s a simple guide to get you through it.

If your business falls within the employee threshold and does not offer a retirement plan:

1. Register Your Business: Visit the official New Jersey Retire Ready website and sign up. It’s quick, and you’ll be done before your coffee cools down.
2. Notify Your Employees: Tell your team about the new retirement savings plan. Send an email, hold a meeting—whatever works best for your business.
3. Set Up Contributions: Decide whether you’ll contribute on behalf of your employees (this is optional), and make sure everything is set up correctly in your payroll system.
4. Stay on Top of It: Look for any updates or changes to the program and ensure compliance as your business grows.

If your business falls within the employee threshold and offer a retirement plan, you must certify your exemption.

And just like that, you’re good to go.

Watch Out for These Common Pitfalls (And How to Avoid Them)

Even with the best intentions, it’s easy to trip up. Maybe you forget a deadline, or an employee has questions you’re not sure how to answer. Here are a few common challenges—and how to handle them like a pro:

• Missed Deadlines: Stay organized. Use calendar alerts, task management apps, or delegate this to someone who’s on top of deadlines.
• Employee Confusion: Be transparent and approachable. Create an FAQ document or schedule a quick Q&A session to clarify any concerns.
• Payroll Hiccups: Double-check your payroll settings and test them before the first contribution date. A little upfront work here saves headaches later.

Remember, you’re not alone—every other business in your shoes is navigating the same waters. With a bit of preparation, you can steer clear of any major issues.

Why This Matters: The Bigger Picture for Your Business

Beyond just ticking a box for compliance, getting on board with the New Jersey Retire Ready Program is a smart business move. It shows your employees that you’re invested in their future, which can lead to higher job satisfaction and lower turnover. Plus, it gives you peace of mind knowing you’re doing right by your team—and by the law.

In a world where everyone’s focused on the here and now, offering a retirement plan can set your business apart as one that’s thinking ahead. And that’s something your employees—and your bottom line—will appreciate.

Ready to Get Started? Let’s Talk

Don’t wait until the last minute to figure this out. If you’re feeling unsure or just want to make sure you’re on the right track, we’re here to help. Schedule a free consultation with us, and we’ll walk you through the process, answer your questions, and help you get everything set up smoothly.

Your employees’ future—and your business—will thank you.

Information contained in this blog is provided for informational purposes and does not constitute legal advice or opinion. You should consult with an attorney about the specifics of your matter or legal issue.

As we previously posted, on April 23, 2024, the Federal Trade Commission (FTC) issued a final rule (the “FTC Non-Compete Rule “) broadly banning non-competition agreements. At that time, we noted that lawsuits had already been filed challenging the FTC’s rule and that it was reasonably likely that the rule would be struck down. On July 3, 2024, the United States District Court for the Northern District of Texas, issued an order and opinion preliminarily enjoining the FTC’s non-compete ban.

What Does the FTC’s Non-Compete Ban Provide?

As we explained in our prior post, the FTC Non-Compete Rule prospectively bans new non-competition agreements for most workers and retroactively invalidates existing non-competition agreements. The only exception from this ban is for senior executives, which the rule defines as workers in policy making positions earning at least $151,164 per year.

The FTC Non-Compete Rule also requires that employers inform all employees with existing non-competes that the non-competition provisions are no longer valid, when (if) the rule becomes effective.

The FTC’s non-compete ban is scheduled to become effective on September 4, 2024, subject to the pending litigation.

What was the Challenge to the FTC Non-Compete Rule?

Ryan, LLC (“Ryan”) was one of the first parties to file a lawsuit challenging the FTC’s non-compete ban. The Chamber of Commerce of the United States of America, the Business Roundtable, the Texas Association of Business, and the Longview Chamber of Commerce intervened in the Ryan lawsuit.

The Complaint alleged that the FTC’s actions in implementing a rule banning non-competition agreements was unlawful because does not have the constitutional authority to create such a rule, and the FTC’s findings in support of the rule were arbitrary and capricious.

What Did the Court Find?

The District Court issued at 33 page opinion that went through in detail the standard for preliminary injunctions and the challenge to the FTC Non-Compete Rule. The Court ultimately found that the plaintiffs were entitled to an injunction because, among other reasons, plaintiffs were likely to prevail on their claim that the FTC lacked the authority to implement the non-compete ban and the rule was arbitrary and capricious. While the District Court found that the FTC does have “some authority to promulgate rules to preclude unfair methods of competition” the FTC lacked authority to create “substantive rules.”

The District Court did, however, limit the scope of its preliminary injunction to the plaintiff and the intervenors. As a result, the FTC Non-Compete Rule is still scheduled to become effective for non-parties on September 4, 2024. The District Court plans to issue a final ruling by August 30, 2024, in advance of the FTC Non-Compete Rule’s effective date.

What Should Businesses Do Now?

Based upon the language in the District Court’s opinion, the most likely outcome of the lawsuit is that the FTC Non-Compete Rule will be stricken down by the court’s final order.

Employers that use non-competition agreements have two main options. First, they can await the District Court’s ruling as it should be issued prior to the effective date of the FTC Non-Compete Rule. Second, employers could join one of the business groups, such as the Chamber of Commerce of the United States or Business Roundtable, which intervened in the Ryan lawsuit and arguably obtain the protections of the preliminary injunction.

Also, regardless of the likelihood that the FTC Non-Compete Ban Rule will be stricken down, employers should review their existing non-competition agreements to ensure that they are narrowly tailored to protect a legitimate business interest. Even in the absence of the FTC Non-Compete Ban Rule, courts will refuse to enforce overbroad non-competition clauses.

If you have questions about your business’s non-competition, or other agreements, please schedule a complimentary consultation with us through our online scheduling system.

Information contained in this blog is provided for informational purposes and does not constitute legal advice or opinion. You should consult with an attorney about the specifics of your matter or legal issue.

With the increased trend towards remote work, the New Jersey Attorney General (AG) has issued Guidance on Discrimination and Out-of-State Workers. The AG’s Guidance interprets the New Jersey Law Against Discrimination (NJLAD) to apply to all out-of-state employees of New Jersey employers.

What Does the Guidance Say about Out-of-State Workers Employed by NJ Businesses

According to the New Jersey Attorney General, NJLAD’s protections apply to all workers who are employed by a New Jersey business, regardless of where the employee physically works.

New Jersey, through NJLAD, enacted one of the most expansive anti-discrimination laws in the nation. NJLAD protects numerous categories of individuals from discrimination and harassment. New Jersey’s protected categories include:

• race
• creed
• color
• national origin
• nationality
• ancestry
• age
• sxx
• gender
• pregnancy
• marital status
• civil union status
• domestic partnership status
• familial status
• religion
• affectional or sexual orientation
• gender identity or gender expression
• atypical hereditary cellular or blood trait
• genetic information
• liability for service in the Armed Forces of the United States, and
• disability

Employers that violate NJLAD’s protections can be sued in court or in the New Jersey Division on Civil Rights (DCR), and be subject to liabilities for front pay, back pay, emotional distress damages, punitive damages, and attorneys’ fees.

Is the Guidance a Change in the Law?

The AG’s Guidance does not change or amend NJLAD. Rather, the Guidance is intended to clarify and explain how NJLAD applies to out-of-state employees given the increase in remote workers. There have not been many reported court decisions interpreting whether NJLAD applies to out-of-state employees, but the AG’s Guidance is based upon the few decisions that have been reported on that issue. Thus, the Guidance should not be read as a change to the law, but rather confirmation that the AG’s office and the DCR will follow the judicial decisions finding that workers of New Jersey based businesses are entitled to the protections of NJLAD, even if the worker is employed in a different state.

What Should New Jersey Employers With Remote Workers Do Now?

The protections afforded by anti-discrimination laws can vary from state to state. In light of the AG’s Guidance, New Jersey employers with remote workers should carefully review their policies and practices to ensure that employees working remotely in other states are being afforded the protections employers are (or should be) giving to their New Jersey based employees when dealing with issues of harassment or discrimination, including reasonable accommodations for disabilities.

If you have questions about handling your remote workforce, or compliance with New Jersey’s employment laws, please schedule a complimentary consultation through our online scheduling system.

Information contained in this blog is provided for informational purposes and does not constitute legal advice or opinion. You should consult with an attorney regarding the specifics of your matter or legal issue.